VPF – Voluntary provident Fund Eligibility, Interest Rates, Benefits, Calculator

The Voluntary Provident Fund VPF is one such way to bump up your retirement savings amount. Not only this, it will also provide you the tax benefits as well. Basically, a Voluntary Provident Fund is a traditional version of Provident Fund Savings Scheme, where the subscriber retains the control to periodically assign a specific amount to his/her provident fund, as a part of his/her Voluntary contribution.

Asides from being a clever tax saving option, it also provides/offers a long-term savings option. This type of Provident Fund has become a quite popular tax savings instrument, for the employed sections of the society.

Eligibility Criteria for the VPF – Voluntary Provident Fund

The Voluntary Provident Fund is especially an extension of the Employee Provident Fund (EPF) where the applicants have to invest 12% of the contribution factor that applies to their traditional EPF Accounts. The Voluntary PF Option is mainly entitled to the employed sections or the salaried individuals who receive their monthly pay through a designated salary account. The people who are working under the unorganized sector or the non-salaried employees can open a PPF (Public Provident Fund) account at the Local Bank or the Post Office.

VPF Account Interest Rates

The Government of India decides the Interest Rates of the VPF for each Financial Year. The current interest rate of the VPF is 7.6% for the year 2016-17. The amount of money accumulated in the VPF Amount is eligible for the Tax Deduction under the Section 80C of the Income Tax Act. This Provident Fund Scheme interest scheme has attracted a lot of Indian’s to apply for it.

Government lowers Interest Rates of Small Saving Schemes and PPF…Read More

Benefits of the Voluntary Provident Fund (VPF)

  • Safe Investment Saving Option

The Voluntary Provident Scheme is offered and managed by the Government of India. Therefore it is tagged as the safest and trustworthy investment medium with no risk. It is usually associated with long-term investment plans that are offered by the Private Players.

  • Simple and Easy to Apply

This provident fund scheme is very easy to apply. All you have to do is to raise a request with the payroll/finance/ HR Team with regards to the opening of the VPF Account. You can do it by simply applying for the VPF Fund Registration form and immediately after, the EPF account will serve as the new VPF Account. This account can be opened at any time of the Financial Year.

  • High Rate of Interest

The VPF Accounts are known for their high yield. Currently, the rate of Interest is 8.65% which is still impressive. 

  • Potent Pension Fund

The amount that you have invested in the VPF can be withdrawn at the time of the Retirement or Resignation from the Current employment. These act as the long-term investments and comes in use if the regular monthly income is not available.

  • Tax Savings

The employee’s contribution towards the VPF Account is eligible for the deduction while accounting for the tax, to the tune of Rs 1 Lakh. The income that is generated through the interest is not taxable, provided the monies derived isn’t in excess of the base interest of 9.50%. The accumulated amount if withdrawn before the account completes 5 years subject to the taxation.

  • Easily Transferable

The VPF Account can be easily transferred from one employer to another employer. Thus, the change of the job is not going to affect the benefits of the regular VPF Contributions. Not only this, the accumulated money is also transferred to the nominee as nominated by you or your legal heir.

VPF Calculator

When you are involved in any long-term savings or investments, there always lies a pinch of curiosity in the final monetary account. That is what, a resourceful investor thinks while making any investment plan. Therefore, to solve these sorts of issues, there are simple online tools available. One of such innovative tool is the Voluntary Provident Fund Calculator.

The Voluntary Provident Fund Calculator makes the complex calculations within seconds. This provides an investor a basic knowledge of how much money should be invested periodically to attain a planned target payout. The VPF Calculator utilizes the following input points to enumerate the VPF Payment Strategy.

  • Base Monthly Salary
  • Percentage (%) of salary to be contributed to the VPF Amount.
  • Monthly Contribution to the Employees Provident Fund (EPF).
  • Employees Contribution to your EPF Account.
  • Current EPF Balance
  • Applicable Interest Rate.

VPF Registration Form

There is no specific registration application form for Voluntary Provident Fund. But however, if the employee is interested to invest some amount in the VPF, then he/she has to intimate the same to his/her payroll teams and the latter will be converted into the applicant’s EF Account to VPF Account. But for this procedure to happen, the concerned employer must be registered with the Employees Provident Fund Organization of India. The employee has to fill in a Business Establishment Registration Form. The form will be processed and will be taken action by the aforementioned EPF Office. Post this, the employer can participate in the EPF Routine and consequently, the concerned employees can request for the opening of the Voluntary Provident Fund account.

Various steps that are involved in the process are as follows

  1. The Employee requests the employer for the additional deductions from his/her salary in the favor of the Voluntary Provident Fund. This can be done any time of the Financial Year.
  2. The employee must fill in the basic KYC Form and sign it appropriately and forward it to the same payroll/ Finance/HR Department of his/her company.
  3. Upon reception of this form, the company’s payroll team will confirm the accuracy of the supplied details and graduate the employee’s basic EPF Account into the requested voluntary PF account. Thereafter, a stipulated percentage as mentioned by the employee will be deducted from his/her salary as the VPF Contribution.
  4. The Basic Format of the Voluntary Provident Fund Form must include the following details:
    1. The date from when the EPF Contributions are made.
    2. Status as not an “excluded” employee as stipulated in the EPF Scheme, 1952.
    3. Percentage of the salary that is permitted to get deducted as the contribution to the VPF Account. Also, the date is also included from when this will be applicable.

Tax Benefits from Voluntary Provident Fund Scheme

When we talk about the Financial Taxes and its effectiveness and tools and investment benefits then the Voluntary Provident Fund comes in priority. According to the latest regulations, the investor can relish a tax break-up of up to Rs 1 Lakh as stipulated by Section 80C of Indian Income Tax Act. All the investments in the VPF Account are considered from the employee’s pre-tax income. Further, the income that is derived from the interest amount from the VPF will not be taxed unless the interest rate exceeds or matches the rate of 9.50%. And if in case, the employee wants to terminate his/her account before the stipulated 5 years tenure then the tax will apply, otherwise, the withdrawal is deemed tax free.

Rules & Regulations that Govern the VPF Scheme

The Indian Government states that the Voluntary Provident Fund is one of the robust investment schemes which provides the benefits to the employed class of people. It has been seen that there is a segment of the population that has a buying power, financial foresight and propensity to create long-term plans. Along with that, this investment scheme provides a seamless, safe and involves a very minimal input of time and energy. In return for that, the employer also enjoys the robust pension fund, medium-term savings instrument that can mature in a certain period of time for a long-planned financial requirement. It also provides a high-interest rate and an easy management. Thus, we can say that the Voluntary Provident Fund has been a popular choice amongst the employed sections of the population.

Applying for the Voluntary PF is very simple. Below is the list that talks about the various rules and regulations that govern the Voluntary Provident Fund Scheme in India:

  • The employee can contribute as much as 100% of his/her salary towards the VPF Account. This contrasts with the EPF account wherein he/she can contribute a maximum of 12% of his/her basic salary.
  • The VPF Scheme is a subset of the Employee Provident Fund Scheme wherein the only differentiating factor is the percentage of the contribution that the concerned employee can appoint, as compared to the fixed 12% that applies to the EPF account. Thus, there is no separate account for VPF.
  • Only the salaried employees who are working with the organizations which are tied up with the EPFO can only open and maintain the VPF Account. The self-employed individuals and the people working in the unorganized sectors are not applicable to open a VPF Account.
  • The employers are under no obligation to contribute their employee’s VPF Portfolio.
  • The VPF Accounts can be opened at any point in time through the Financial Year. However, the investments to the same cannot be terminated/discontinued before the base of the tenure of 5 years is completed.
  • It is best to start the VPF Account at the start of the financial year. This will help in the better financial planning and tax savings. The onus lies with the concerned employees to affect this by intimating his/her employer about the same.
  • The applicants must also note that the VPF Account interest rates are decided at the start of the financial year by the Government. These rates can be either increment or decrement as compared to their previous years. Thus, all the applicants must pay an attention to the VPF Interest Rate that applies for the specific financial year before signing on the dotted lines.
  • If the Indian Government’s ambitious Direct Taxes Code (DTC) comes into effect then the entire VPF Amount at the time maturity period is liable to be taxed. The DTC is a proposed regulation from the Indian Government that simplifies the direct tax laws that are currently working in India. In short, the main objective of the Direct Taxes Code is to simplify and revise the Direct Tax Laws implemented in India.
  • The VPF account also allows partial withdrawals as loans, with also the possibility to complete withdrawals. If the withdrawal takes place before the account has completed 5 years of existence then the tax will be applicable on the accumulated maturity amount.
  • The Final maturity amount is payable at the time of the retirement or the resignation from the employment. The amount can also be transferred from one employer to another employer (in case of the EPF accounts m) and on the unfortunate death events of the account holder, the assigned nominee/legal heir will gain the possession of the accumulated balance in the VPF Account.

Documents Required to Open a Voluntary Provident Fund

As told earlier, the Voluntary Provident Fund is the fragment of the Employee Provident Fund. This can be applied by simply forwarding the request to the concerned company’s payroll/finance or HR Department. The application form mainly consists of the employee’s basic information that concerns the payroll team to deduct a specific percentage of an amount from the employee’s basic monthly salary as the VPF contribution.

The documents that are required for the Voluntary Provident Fund Registration are:

  • Your complete company profile
  • Certificate of Business Registration (Form 9 and Form D)
  • Forms 24 and 29.
  • MOF- Company Registration Certificate
  • If Company is a “Sdn Bhd”- Memorandum and Articles of Association
  • Other documents as when required (mentioned).

VPF Withdrawal Process and Withdrawal Forms

The investments that come under the VPF Scheme is quite popular and is one of the biggest reason is that, the money that is accumulated in the VPF account can be withdrawn at any moment in time. But there are certain conditions that are applied to these schemes. This accumulated money can be used immediately in case of emergency cases such as health issues etc. A depositor can break his/her VPF account for some fixed reasons. Some of them are as follows:

  • Medical treatments for the account holder or his/her family members.
  • Cost Intensive events such as higher education and marriage.
  • For the construction/purchase of the house/plot of land.
  • Home Loan Repayments.

Note:

If you are terminating your VPF account before 5 years of existence, then you will be charged tax deductions on the accumulated funds.

For withdrawing a certain amount from his/her VPF account, the person has to provide a Form 31 through his/her employer. Form 31 is known as the application of advance from the EPF Fund. This can be downloaded from the EPFO’s Official website. The form consists of the details of the employee, postal address, EPF Account Number, bank details etc. The application form must be attested by the concerned employer.

PMVVY – Pension Scheme Launched for Senior Citizen with 8% Interest Rate

PMVVY – Pension scheme Launched for senior citizen with 8% rebate Pradhan Mantri Vaya Vandhan Yojana (PMVVY) was earlier announced by PM Narender Modi and this much-awaited scheme finally came into being on 21st July 2017.
The Government launched this new pension scheme exclusively for the senior citizens in the 2017-18 Union Budget. Under which the policy will provide a guaranteed return of 8% for 10 years. Finance Minister Arun Jaitley said PMVVY will provide a respectable rate of return to senior citizens at a time when interest rates will fall globally.

Highlights of the PMVVY scheme

  • The scheme is available exclusively for the senior citizens aged 60 years and above which is available from May 4, 2017, to May 3, 2018.
  • The scheme assures pension based on a guaranteed return of 8% which is equivalent to 8.30% per annum for 10 years with an option to opt for the pension on a monthly/quarterly/half-yearly or on annual basis.
  • Through Life Insurance Corporation (LIC) the scheme can be purchased online as well as offline in the current financial year.
  • The pension shall be through National Electronic Funds Transfer (NEFT) or Aadhaar enabled payment system.
  • The first installment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
  • As a part of the plan, the scheme can be purchased by making a one-time payment.
    If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days and 30 days if this policy is purchased online from the date of receipt of the policy with valid reason.
  • This scheme is flexible as the subscribers can loan up to 75% of the purchase price after 3 years of the policy. Loan interest shall be recovered from the pension installments and the loan to be recovered from loan proceeds.
  • PMVVY is also exempted from service tax or GST.
  • One can also exit from the scheme in a premature state with a valid reason of terminal illness of the pensioner or the spouse. In that case, 98% of the purchase price will be refunded.

Investment Scheme of PMVVY

There is a minimum and maximum limit for investment under PMVVY. The amount varies according to the pension payment mode chosen.

PMVVY Investment Scheme
PMVVY Investment Scheme
  • The return guaranteed and the actual interest earned shall be subsidized by the Centre and reimbursed to LIC.
  • Under the scheme, if the pensioner lives till the end of the policy term of 10 years, he/she will be paid the purchase price along with the final pension installment.
  • In the case of the death of the pensioner during the policy term, the purchase price will be paid to the beneficiary.

As the senior citizens want no risk investment and they want a non- fluctuating and reasonable rate of return because they have not gainfully employed at the age, this scheme is beneficial to them.
This scheme takes the Government one step closer to provide social security to its citizens.

Now PPF Goes Online – A New Service by ICICI Bank

The India’s largest Private Bank ICICI Bank launches a digital service that allows the customers to open PPF Account through Internet Banking or Mobile Banking. Adopting this new digital facility will ease up the process and will reduce the confusion of the submission of the paper documents.

Some Relevant Links
ICICI Bank Credit Card Customer Care Number Click Here
Link Aadhaar With ICICI Bank Account Click Here
ICICI Bank IFSC Code Click Here

The customers now no longer have to visit the bank branch and wait in the queue and submit the physical documents to open a PPF Account. They can now do it anytime, anywhere using the bank’s digital channels of Internet and Mobile Banking.

The bank said that it is a first lender in the Country to introduce a complete digital and paperless procedure for opening a PF Account. This facility is completely available online (24*7) and on all days. The customers have to log in to their Internet Banking or Mobile Banking for applying for a PPF Account.

Online GST Registration Process | GST Identification Number | GSTIN

The GSTIN is otherwise called as the GST Identification Number. All the business entities registering under GST are provided with a unique identification number called as GSTIN. This number is similar to that of the existing TIN Number that is the Tax Identification Number. This is a single type registration number for everyone who falls under the GST regime. People can apply for the GST registration in form GST REG-06 for the principal face of the business that is available on a common portal. This registration is valid for all the places of business in the state.

Format of GSTIN

The Goods and Service Tax Identification Number is based on the following format:

  • First two character of the State Code
  • Next Ten Characters of the PAN or the Tax Deductions or the Collection Account Number.
  • Next two characters for the entity code
  • The last digit denotes the sum of all the characters

Like for an Example:

22   AAAAA0000A  1  Z  5

This is the official format of a GSTIN. The 22 represents the State Code as per the Indian Census 2011. The AAAAA0000A represents the PAN number of the applicant. 1 is the Entity Number of the same identity of the PAN Holder in a state. The alphabet “Z” is set by default. Whereas, the number 5 is the sum of all the number characters (2+2+1=5).

How To Apply For GSTIN

This is a part of a GST registration process. The Government allots a 15 digit GSTIN Number. All you have to do is go to the official website of www.gst.gov.in

There are two ways to register for GST

  • via an online portal
  • via GST Seva Kendra set up by the Government of India.

Once the GST is approved by the GST officer, a unique GSTIN is allocated to the dealer.

Documents Required to Apply for a GSTIN

The following are the details for applying a GST:

  • Valid Permanent Number (PAN)
  • Valid Indian Mobile Phone Number
  • Valid email Address
  • Prescribed Documents and information on all the mandatory fields of Registration Application.
  • Place of Business
  • An authorized signature of the resident of India with valid details including the PAN.
  • At least one proprietor/Partner/Trustee/Director/Karta/Member with Corresponding PAN.
  • IFSC Code of the same bank and branch.
  • Valid Bank Account Number from India.
  • Jurisdiction details.

Cost Of Applying and Validity

The cost for obtaining a GST and GSTIN is free. The GST registration for the regular tax payers do not have any expiry date and is valid until it is surrendered and canceled. The GST registration for the non-residential tax payer and casual taxable persons are valid until the date is mentioned in the certificate.

How To Check A GST Application Status

If you have applied for a GST registration then it normally takes 7 working days to generate a provisional GST Identification Number and it requires 10 days to obtain the final GST Identification Number along with the GST Registration Number.

  1. Go to the GST Portal:  www.gst.gov.in
  2. When you visit the GST Portal click on the services-registration- Track Application Status
  3. A box is displayed requesting you to enter the ARN Number.
  4. Enter the ARN number of the GST registration application in the place provided and enter the Captcha.
  5. After providing the ARN number, the information about the GST registration application status is displayed below.
  6. If the GST registration application is approved then the approved message status will be displayed next to the status information.

Verifying GSTIN

Being a registered GST dealer, it is important to verify the GST Identification Number before entering it into the GST Returns. The GST Portal enables the businesses to verify the GSTIN.

Step By Step Procedure To Verify GST Identification Number:

  • Visit the GST Portal. Login to the GST Portal.
  • Enter the login Username and Password provided during the registration.
  • After logging in, a page appears where an option of Search Tax Payer is displayed on the menu bar. In the drop down go to search by GSTIN/ UIN.
  • Now enter the GSTIN or the GST Number of the dealer and Click on Search.
  • If the GSTIN is correct then you will get all the details and information regarding the dealers, whereas, if your GST Identification Number is wrong then an error message will be shown on the screen. In this case, you will have to contact the vendor and get your GST Identification Number corrected.

If the GST is correct, then these are the following details that are displayed on the screen:

  • Legal Name of the Business
  • The State of the applicant.
  • Date of registration- It is the date when you have applied for the GST, i.e GST Registration date.
  • Construction of the Business- Company, Sole Proprietor or Partnership.
  • Type of Tax Payer- A regular tax payer or a composition dealer.

Income Tax Return Filing | How to e-File Your Income Tax Return Online

The Income Tax is a tax that levied to the taxpayers on their personal income. It is imposed on every individuals or entity that varies with their respective income or profits. As per the section 139 (1) of the Income Tax Act 1961 in the country, if a person’s total income exceeds the maximum amount which is not chargeable to tax has to file an ITR (Income Tax Return).

The process of filing an Income Tax Return electronically is called as e-filing. For filing an ITR, you can either ask for professional help or file your returns just by registering yourself on the Income Tax Department websites or other websites. The last date for filing the tax returns was July 31st.

Who should e-File an Income- Tax Return

The e-filing is done completely online and is performed by most of the individuals.

  • The Individuals who have a total income of Rs 5 Lakhs and above.
  • The Individual/ HUF residents along with the family who is located outside India.
  • An individual has to furnish a report of an audit specified under the sections 10 (23C) (IV), 10 (23C) (v), 10 (23C) (VI), 10 (23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 11JB of the Act.
  • The individual also has to give a Notice under the Section 11 (2) (a) to the assessing officer.
  • A firm (that does not come under the provisions of Section 44 AB), AOP, BOI, Artificial Juridical Person, Co-operative Society and Local Authority (ITR-5).
  • An individual required to furnish returns U/S 139 (4B) (ITR-7).
  • A resident who has the signing authority in any account located outside India.
  • A person who claims relief under sections 90 and 90A or deductions under section 91.
  • All companies.

Types of e-Filing

  • Using a Digital Signature Certificate (DSC) to e-file. It is mandatory to file the IT Forms using the Digital Signature Certificate by a chartered accountant.
  • If you are filing an ITR Form without DSC, then you have to generate an ITR-V Form. This form has to be printed, signed and submitted to the CPC, Bangalore through an ordinary post or speed post within 120 days from the date of e-filing.
  • You can also file an e-file IT Returns through an E-Return Intermediary (ERI) with or without DSC.

Checklist for e-Filing IT Returns

There are a few prerequisites to file your taxes in smoother and easier way. Below are the major points that have been highlighted below:

  • How to choose a right form to file your taxes electronically.
  • It can be a bit confusion to choose which type of form one should use to file the taxes online. The different categories of Income Tax Return (ITR) forms are:

ITR 1 (SAHAJ)

Individuals with income from salary and interest

ITR 2

Individuals and Hindu Undivided Families not having income from business and profession.

ITR 3

Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship.

ITR 4

Individuals and HUFs having an income from proprietary business or profession.

ITR 4S (SUGAM)

Individuals/ HUF having income from presumptive business.

ITR 5

Firms, AOPs, BOIs and LLP

ITR 6

Companies other than the companies claiming exemption under Section 11.

ITR 7

Persons including the companies required to furnish return under the section 139 (4A) or Section 139 (4B) or Section 139 (4C) or Section 139 (4D)

  • Check your Tax Credit- Form 26AS Vs Form 16

The Form 26 AS can be checked before filing the tax returns. Form 26 AS shows the amount of tax that is deducted from your salary and deposited by the IT Department by your employer. Make sure that the tax deducted from your income should match with the amount that you have entered in Form 26 AS. If your form does not consist of any errors then you will receive a notice from the IT Department.

  • Claim 80 G, Savings Certificates and Other Deductions:

You can claim extra deductions in case if you have to claim them. Similarly, you can also claim deductions under 80 G on donations made to charitable institutions.

  • Interest Statement- Interest on Savings Accounts and Fixed Deposits.

A Deduction up to Rs 10, 000 is allowed on the interest earned on the savings accounts. The interest that is earned on the bank deposits, form a part of your taxable income and is taxable to the applicable income tax slab rates.

  • Including other documents: [Last Year’s Tax Returns, Bank Statements, Tax Deducted at Source (TDS) Certificates, Profit and Loss account Statements, Balance Sheet and Audit Reports, if applicable.
  • Ensure that your system adapts the latest Version of Java Runtime Version 7 Update 6 or above.

List of the Documents that are required while e-Filing an ITR

The Document check-list for e-filing an ITR are as follows:

General Details

  • Bank account details
  • PAN Details

Reporting Salary Income

  • Rent receipts for claiming HRA
  • Form 16
  • Pay Slips

Reporting House Property Income

  • Address of the house property
  • Details of the co-owners including their share in the mentioned property and PAN Details.
  • Certificate for Home Loan Interest.
  • Date when the construction was completed, in case under construction property was purchased.
  • Name of the tenant and the rental income, in case he property is rented.

Reporting Capital Gains

  • Stock trading statement is required along with purchase details if there are a capital gains from selling the shares.
  • In case a house or a property is sold, you must sought sale price, purchase price, details of registration and capital gain details.
  • Details of the mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and SIPs.

Reporting Other Income

  • The income from the interest is also reported. If the interest is accumulated in the savings account then you need to have your bank statements as well.
  • The interest income from the tax saving bonds and corporate bonds must be reported.
  • The income details are earned from the Post Office and must be reported.

Income Tax Slab Rates

The Income Tax Slab Rates for the Financial Year 2017-18 and for an Assessment Year 2018-19

(As Declared in the New Budget)

For the Individuals and the Hindu Undivided Family (whose age is less than 60 years):

Income Tax Slab

Tax Rate

Up to Rs 2, 50, 000

NIL

Above Rs 2,50, 000 and up to Rs 5, 00, 000

5%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

  • 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
  • 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.

For the Individuals and HUF (whose age is 60 years and more and less than 80 years:

Income Tax Slab

Tax Rate

Up to Rs 3, 00, 000

NIL

Above Rs 3, 00, 000 and up to Rs 5, 00, 000

5%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

  • 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
  • 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.

For Super Senior Citizens (Age- 80 years and more):

Income Tax Slab

Tax Rate

Up to Rs 5, 00, 000

NIL

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above Rs 10, 00, 000

30%

Note:

  • 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
  • 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.

Income Tax Slab rates for Year 2016-2017

For Individuals and HUF (Age- Less than 60 years):

Income Tax Slab

Tax Rate

Up to Rs 2, 50, 000

NIL

Above Rs 2,50, 000 and up to Rs 5, 00, 000

10%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

12% Surcharge is imposed in case of the total income above Rs 1 Crore.

For the Senior Citizens (Age- 60 years and above, but less than 80 years):

Income Tax Slab

Tax Rate

Up to Rs 3, 00, 000

NIL

Above Rs 3, 00, 000 and up to Rs 5, 00, 000

10%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

12% surcharge is imposed in case the total income is above Rs 1 Crore.

For Super Senior Citizens (80 years and above):

Income Tax Slab

Tax Rate

Up to Rs 5, 00, 000

NIL

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above Rs 10, 00, 000

30%

12% of surcharge is imposed if in case the total income is above Rs 1 Crore.

Income Tax Return Due Date

The due date of the ITR Filing for the Hindu Undivided Family (HUF), Individuals, AOP (Association of Persons), BOI (Body of Individuals) is usually 31st July of the next Financial Year.

Like for an Example: The ITR Due Date for the Financial Year 2017-18 will be 31st July 2018.

How to File e-Returns

  • Fill in the Income Tax Returns Offline and upload it in the XML Format on the Official website: IncomeTaxIndiaeFiling.gov.in
  • Prepare and Submit the ITR Online.

Steps to Follow While Filing an Income Tax Return

Filing for an Income Tax Return online is not a tuff task. Just follow the below steps and file your ITR Online:

  • Firstly log in to the IncomeTaxIndiaeFiling.gov.in and register yourself.
  • Note: Your Permanent Account Number (PAN Number) is your User ID.
  • You can view your tax credit statement on Form 26 AS. The TDS as mentioned in the Form 16 must be tallied with the figures in Form 26AS.
  • Click on the Income Tax Returns Forms and select on the Financial Year.
  • Download the ITR Form that is applicable to you. If the exempt income exceeds Rs 5000, then the required form id ITR-2. (If the applicable form is ITR-1 or ITR- 4S you can complete the process on the portal itself by using the “Quick e-file ITR” link.
  • Open the Excel Utility- it is a downloaded return preparation software. Fill in the details using the Form 16.
  • Check the tax payable amount by clicking the “Calculate Tax” tab.
  • Pay the tax (if required/applicable) and fill in the Challan Details.
  • Confirm all the data that is provided in the worksheet by clicking the “Validate Tab”.
  • Generate the XML File and save it on your Desktop.
  • Go to the “upload return” on the Portal’s panel and upload the saved XML File
  • A pop-up is displayed asking you to “Digitally Sign the File”. if in case you already have a digital signature select the “Yes” option and if you do not have a digital signature then select the option “No”.
  • An acknowledgement form, ITR Verification (ITR-V) is generated which you can easily download.
  • Take a printout of the form ITR-V and sign it in Blue Ink.
  • Send the form by ordinary or speed post to the Income-Tax Department-CPC, Post Bag, Bangalore 560 010, Karnataka within 120 days of filing your returns online.

Steps to File ITR-1 and ITR-4S Online

Steps to prepare and Submit ITR-1 and ITR-4S (Sugam) online:

You have the option to submit ITR-1/ITR 4S forms by uploading in XML Format or by online submission.

  • Login the e-filing application.
  • Go to the “e-File prepare” and submit ITR Online
  • Select the Income Tax Return Form ITR-1/ITR-4S and the assessment year.
  • Fill in the details and click on the submit button and choose DSC (Digital Signature Certificate) (if available). Then click on the submit option.
  • After the submission, the acknowledgement details are displayed.
  • Click on the below link to view and generate a printout of the acknowledgement/ ITR-V Form.

For using a DSC, you need to register in the e-filling application. You can do it by logging in on the e-filling website of the IT Department and update the profile section. Under the Profile settings, you have to select the register digital signature certificate ad download the ITD e-Filing DSC Management Utility. This utility can be used to generate the DSC File.

Use of the Private Portals

You can also make use of the other websites to file your Income Tax Returns Online. These portals charge fees around (Rs 250-300) depending upon the kind of the services they provide.

Things to Keep in Mind While e-Filing

  • If the same mobile number is used by more than four tax payers, then you cannot file returns on the website unless the required change is done. Like for an example: in some instance, there are more than five returns that may be filed- yours, wife’s, mother-in law and the Hindu-Undivided Family (HUF) of which you are the Karta the executor of the will.
  • If your name is mentioned in the bank documents or the Official statements is a slight different from the name entered in the PAN Card, then the Portal will consider as a different individual. In some cases, the individual gives his/her father’s name as their middle name in their PAN Card but is not used in the Bank Accounts.
  • If you are a non-Indian Resident and need to file the Income Tax Returns, then you will require an India Number and a Foreign Number.