user guide for filing individual income tax return on-line

ISO 9001:2000 CERTIFIED
USER GUIDE FOR FILING
INDIVIDUAL INCOME TAX
RETURN ON-LINE
TABLE OF CONTENTS
Item Description
Page
1.
ABBREVIATIONS IN THE DOCUMENT ................................................................. 2
2.
INTRODUCTION ......................................................................................................... 2
3.
STEP-BY-STEP GUIDE FOR FILING IT1 RETURN ONLINE ................................ 3
4.
GETTING STARTED ................................................................................................... 3
5.
HOW DO I LOGIN TO ITMS TO FILL MY RETURN? ............................................ 4
6.
HOW DO I FILL IN MY RETURN ONLINE? ............................................................ 5
7.
HOW DO I FILL IN MY INCOME DETAILS FROM SPECIFIED SOURCES? ...... 7
8.
FILLING THE DRP IN PART A-F .............................................................................. 8
9.
HOW DO I FILL MY EMPLOYMENT INCOME DETAILS? ................................... 10
10. HOW DO I FILL IN MY PENSION CONTRIBUTION, MORTGAGE INTEREST OR
HOSP CONTRIBUTION DETAILS? ........................................................................... 11
11. HOW DO I FILL IN MY INSURANCE RELIEF DETAILS?..................................... 13
12. HOW DO I FILL IN MY PAYE CREDITS, ADVANCE TAX AND OTHER WITHHELD
TAX DETAILS? ............................................................................................................ 14
13. HOW DO I SUBMIT MY RETURN? .......................................................................... 15
1
1. ABBREVIATIONS IN THE DOCUMENT
DRP
HOSP
IT1
ITMS
KRA
P9A
PAYE
PIN
TSW
W44
Detailed Report
Home Ownership Saving Plan
Individual Return
Integrated Tax Management System
Kenya Revenue Authority
Tax Deduction Card
Pay As You Earn
Personal Identification Number
Taxpayer Software
Withholding Tax Certificates
2. INTRODUCTION
Under sec. 52B of the income Tax Act ( Not withstanding any other provisions of the Income
Tax Act), every individual chargeable to tax under this Act shall for any year of income, furnish
to the commissioner a return of income, including a self assessment of his tax from all sources of
income, not later than 30th June. If you do not submit the Return by this date you will be liable to
a penalty at the rate of 5% of the net tax due for every period of 12 months or part thereof,
minimum penalty being Ksh1, 000.
This document will guide you on how to file your return directly on-line.
This online guide will help in filing the entire return, but it is highly
recommended that you use the return filing software –TSW- if you are
declaring income that is not employment income and requires completing
detailed reports- DRPs- which requires more time
If indeed you have no income to declare in all the parts A-F, please proceed to
Part G of the return.
2
3. STEP-BY-STEP GUIDE FOR FILING IT1 RETURN ONLINE
To be able to file your IT1 return online, you will need to register as a user in ITMS. To register
follow the steps in the online services step-by-step guide provided on the KRA website
www.kra.go.ke/portal
Download the step by step guide for
registration to ITMS.
4. GETTING STARTED
To complete your return you will need the following documentation where applicable:
• Form P9A from Employer.
• The employer’s PIN. Request PIN from your employer if not already on the P9A.
• Financial statements for the following incomes; business income, farming income, rent
income.
• Mortgage Interest Certificate and PIN of lender
• Insurance Premium Certificate and PIN of underwriter
• Withholding tax certificates (W44)
• Any other documentation relating to income you received or deductions you want to
claim
3
5. HOW DO I LOGIN TO ITMS TO FILL MY RETURN?
To login do the following:
a) Access the KRA portal www.kra.go.ke/portal
b) Select the link Tax Returns Processing
c) Login by providing your credentials i.e. Identification (PIN) and password
Select the link “Tax
Returns Processing”.
Enter your PIN
Enter your password
4
6. HOW DO I FILL IN MY RETURN ONLINE?
To fill in your return online, use the following steps:
a) Select the Tab “Tax Return”
b) Click the link “Fill in Tax Return”
c) Select the return type e.g. Income Tax individual
d) Select the year
e) Click the button “Fill Tax Return”
f) Enter your ID number, your employer’s PIN.
NB If declaring wife’s income, type (YES) in the appropriate field and provide her PIN.
If declaring separately type (NO).
1) Select the tab “Tax
Return”
2) Click the link Fill in
Tax Return.
Click here to select the
Return “Income Tax
Individual”
5
Click here to
select the year
Click “Fill Tax
Return”
1) Enter ID number
3) If declaring
income on
behalf of wife;
type ‘YES’ and
enter her PIN. If
not type ‘NO’
2) Enter your
Employer’s PIN
6
7. HOW DO I FILL IN MY INCOME DETAILS FROM SPECIFIED SOURCES?
The body of the return is divided into parts A-K
Part A- F:
These parts are for the various specified sources of income, other than employment income. That is, business
income (A), income from farming (B), income from rent(C), interest income (D), insurance commission (E),
and other income (F).
i) First row in each section A-F (row 11, 21,31,41, 47, 57) requires that you fill a detailed report found
by clicking the label “DRP”
ii) Fill in partnership profit/loss on the second row of each of these parts (field 13, 23, 33, 43, 49 and 59)
where applicable.
iii) Fill in loss brought forward from previous year on the fourth row (field 17, 27, 37, 53 and 63) of each
section where applicable.
iv) If you have no income to declare in any of the above parts (rows), please leave blank and proceed to
the next part.
v) If indeed you have no income to declare in all the parts A-F, skip the entire part and proceed to
Part G.
NB:
o Do not use brackets or negative signs to denote losses or expenses.
o For any part that has a detailed report (DRP), fill in details appropriately then click
“Calculate” then “Submit” to proceed.
7
8.
Click here
to fill DRP
FILLING THE DRP IN PART A-F
To fill the DRP, click the button “DRP”
o
Once you click the button “DRP|”, the detailed report on page 8 appears; fill in
the relevant fields as per your financial statement. Then click “Calculate”, then
“Submit” to proceed.
8
Click
“Calculate”
then
“Submit”
9
9. HOW DO I FILL MY EMPLOYMENT INCOME DETAILS?
Part G: Employment income
In this section enter all your income from employment. Supply all the details as contained in the
support/reference documents.
Field 68: Enter gross pay
Field 70: Enter benefits from employment (other than car and housing) e.g. telephone, domestic
servant etc
Field 72: Value of car benefit
Field 74: Enter value of housing if housed by employer
Field 76: Enter pension income (Pensioners only)
Click here to
fill Value of
car benefit
Value of Car benefit DRP
Fill in all the columns as required then click “Calculate”, then “Submit” to proceed.
For “body type” enter details as follows:
For a saloon/estates car enter 1
For Pick Up, Uncovered Panel Van enter 2
For a Land Rover/Cruiser enter 3
Click
“Calculate”
then
“Submit”
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10. HOW DO I FILL IN MY PENSION CONTRIBUTION, MORTGAGE INTEREST
OR HOSP CONTRIBUTION DETAILS?
Part H: Total Taxable Income
This calculates your total taxable income.
Field 82: Enter your actual pension contribution from form P9
Field 84: Enter Mortgage interest (DRP) from mortgage certificate
Field 86: Enter contribution to Home Ownership Savings Plan
Note:
1. You are only allowed to claim EITHER Mortgage interest OR contribution to Home
Ownership Savings; but not both.
2. If you are filing as husband and wife you can ONLY claim on one mortgage account.
Click here to fill the
mortgage details
The mortgage Interest DRP below appears; fill in the details appropriately then click “Calculate”,
then “Submit” to proceed
Click
“Calculate”
then
“Submit”
Click here to fill the
Home Ownership
Saving Plan DRP
11
The Home Ownership Savings Plan (HOSP) DRP appears: fill in details from HOSP certificate
then click “Calculate”, then “Submit” to proceed
Click
“Calculate”
then
“Submit”
12
11. HOW DO I FILL IN MY INSURANCE RELIEF DETAILS?
Part I: Tax computation
Field 94: Enter Insurance relief where applicable
Click here to fill the
Insurance Relief
The Insurance relief DRP appears; fill in details appropriately then click “Calculate”, then “Submit”
to proceed
Click
“Calculate”
then
“Submit”
13
12. HOW DO I FILL IN MY PAYE CREDITS, ADVANCE TAX AND OTHER
WITHHELD TAX DETAILS?
Part J: Final tax
Field 99: Enter PAYE credits from P9 (Employees only)
Field 100: Enter advance tax credits from the receipts
N/B Advance Credit will be given only where you have declared income from transport business.
Field 101: Enter Withheld tax
Enter your PAYE
credits here
Click here to
fill in the
Advance Tax
The Advance Tax DRP appears; fill in details appropriately then click “Calculate”
For “Usage” enter details as follows:
For Vans, Pick-ups, Trucks and Lorries enter 1
For Saloons, Station-wagons, Minibuses, Buses and Coaches enter 2
Click
“Calculate”
then
“Submit”
14
PART K
In this part you will be required to enter value of Total Installment Tax Paid.
Enter the total
Installment tax
paid
13. HOW DO I SUBMIT MY RETURN?
Once you complete filling your return follow the steps below to submit:
I. Press calculate; should there be an error in the return, a message will appear at the bottom
of the return describing the error. Correct the error then press calculate again.
II. Check the box to declare that the information you have filled is a true reflection of your
income
III. Submit the return by pressing the “Submit” button
15
Once you submit successfully a message appears informing you that your request has been
processed successfully.
If there is payment to be made, select the link “Confirm E-Slip”. If no payment is to be made
then the only option available will be “Display Tax Return”.
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