USER GUIDE FOR FILING INDIVIDUAL INCOME TAX RETURN … · USER GUIDE FOR FILING INDIVIDUAL INCOME...

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ISO 9001:2000 CERTIFIED USER GUIDE FOR FILING INDIVIDUAL INCOME TAX RETURN ON-LINE USING THE TAXPAYER SOFTWARE (TSW)

Transcript of USER GUIDE FOR FILING INDIVIDUAL INCOME TAX RETURN … · USER GUIDE FOR FILING INDIVIDUAL INCOME...

ISO 9001:2000 CERTIFIED

USER GUIDE FOR FILING

INDIVIDUAL INCOME

TAX RETURN ON-LINE

USING THE TAXPAYER

SOFTWARE (TSW)

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TABLE OF CONTENTS

1. ABBREVIATIONS IN THE DOCUMENT ............................................................... 2

2. INTRODUCTION....................................................................................................... 3

3. STEP-BY-STEP GUIDE FOR FILING IT1 RETURN USING TAXPAYER

SOFTWARE (TSW)........................................................................................................... 3

4. GETTING STARTED................................................................................................. 4

5. HOW DO I PUT MY DETAILS IN THE TAXPAYER SOFTWARE? .................... 5

6. HOW DO I CREATE MY RETURN USING THE TAXPAYER SOFTWARE?..... 6

7. HOW DO I FILL MY INCOME DETAILS FROM SPECIFIED SOURCES? ......... 8

8. HOW DO I FILL MY EMPLOYMENT INCOME DETAILS?............................... 11

9. HOW DO I FILL IN MY PENSION CONTRIBUTION, MORTGAGE INTEREST

OR HOSP CONTRIBUTION DETAILS? ....................................................................... 13

10. HOW DO I FILL IN MY INSURANCE RELIEF DETAILS?................................. 15

11. HOW DO I FILL IN MY PAYE CREDITS, ADVANCE TAX AND OTHER

WITHHELD TAX DETAILS?......................................................................................... 16

12. HOW DO I SAVE MY RETURN FOR SUBMISSION?......................................... 17

13. HOW DO I UPLOAD MY RETURN? ..................................................................... 20

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1. ABBREVIATIONS IN THE DOCUMENT

DRP Detailed Report

HOSP Home Ownership Saving Plan

IT1 Individual Return

ITMS Integrated Tax Management System

KRA Kenya Revenue Authority

P9A Tax Deduction Card

PAYE Pay As You Earn

PIN Personal Identification Number

TSW Taxpayer Software

W44 Withholding Tax Certificates

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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 on-line using the

Taxpayers Software (TSW).

3. STEP-BY-STEP GUIDE FOR FILING IT1 RETURN USING TAXPAYER

SOFTWARE (TSW)

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

You will also be required to download and install the taxpayer software (TSW)

from the link provided www.kra.go.ke/portal/downloads

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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

Download TSW and step by step guide for

registration to ITMS.

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5. HOW DO I PUT MY DETAILS IN THE TAXPAYER SOFTWARE?

After downloading and installing the TSW, double click the icon that

appears on the desktop to get the screen below.

Click here

to enter

your

details.

Select

Individual.

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6. HOW DO I CREATE MY RETURN USING THE TAXPAYER

SOFTWARE?

Use the “tax return” tab then follow the steps below:

1. Key in the

details in the

fields

marked with

asterisks.

Click on

the tax

return tab

2. Click

save

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1. Select the

year. 2.

Click

‘create

return’.

Enter details on

fields 5 – 10. (9 &

10 only relevant if

8 is ‘yes’)

Click on the down

arrow to get a list of

forms and select IT1.

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7. HOW DO I FILL MY INCOME DETAILS FROM SPECIFIED SOURCES?

The body of the return is divided into parts A-K

Part A- F: These parts (A-F) 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).

a) First row in each section A-F (row 11, 21,31,41, 47, 57) will require that you fill up a detailed

report found by clicking in the blank area of the field

b) Fill in partnership profit/loss on the second row of each of these parts (field 13, 23, 33, 43, 49

and 59) where applicable.

c) Fill in loss brought forward from previous year on the fourth row (field 17, 27, 37, 53 and 63)

of each section where applicable.

d) If you have no income to declare in any of the above parts (rows), please leave blank and

proceed to the next part.

e) 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 “Save and Accept” to be able to proceed.

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Body of the return (section A-

F)

Click inside the first

field of part A – F and

click ‘yes’ to fill the

DRP (where applicable)

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After clicking yes, the detailed report below appears. Fill in the relevant fields as per your

financial statement

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8. 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)

Value of Car DRP

Click inside field 72

and click ‘yes’ on

the message to get

the DRP below

(where applicable)

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Value of Car benefit

Fill in all the columns as required

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

On the message shown click OK to proceed

Click here

to Save

Click OK

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9. 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

Note:

1. You are only allowed to claim 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 inside field 84,

and on the message

click ‘yes’ to fill the

mortgage details

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The mortgage interest DRP appears, fill in details appropriately then click save and

accept.

Once the message (shown below) appears, click ‘OK’ to proceed.

For HOSP DRP click field 86 as shown below

The Home Ownership Savings Plan (HOSP) DRP appears, fill in details from HOSP

certificate then click save and accept.

Once the message (shown below) appears, click ‘OK’ to proceed.

Click inside field 86

and click yes to fill

the HOSP DRP

where applicable.

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10. HOW DO I FILL IN MY INSURANCE RELIEF DETAILS?

Part I: Tax computation

Field 94: Enter Insurance relief where applicable

The Insurance relief DRP appears, fill in details appropriately then click save and

accept.

Click inside row 94

and click yes to fill the

Insurance relief DRP

where applicable.

Click here

to save

and accept

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Once the message (shown below) appears, click ‘OK’ to proceed

11. 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

The Advance Tax credits DRP appears, fill in details appropriately then click save and

accept.

On the message that appears click OK to proceed with filling the return

Click inside field 100

and click yes to fill the

Advance tax Credits

DRP where applicable.

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Note: Enter load capacity in tons e.g. for a 1000 kg load capacity pick-up, the load

capacity should be entered as 1

PART K

In this part you will be required to enter value of Total Installment Tax Paid

12. HOW DO I SAVE MY RETURN FOR SUBMISSION?

Follow the steps below.

i) Validate the return by clicking the “Validate” button.

Click here to validate

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The message below appears. Press “OK”

ii) Save the return by clicking on the “Save” button.

The message below appears. Press “OK”

iii) Then save for Submission.

Once you save for submission, select the folder where the return file will be saved e.g.

My documents. Once you have selected the folder, press the save button as shown below.

Press here to

save.

Click here to

save for

submission

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Once you press “Save” the message shown below appears. Press “OK” and the return is

now ready for uploading.

1) Select the

folder.

2) Click

Save.

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13. HOW DO I UPLOAD MY RETURN?

Follow the steps below.

i) Log into the online system

a. Access the KRA portal (www.kra.go.ke/portal)

b. Select the “Tax Returns Processing” link as shown below.

c. Log-in using your credentials

Tax Returns

Processing

link

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ii) Click on the tab Tax Return. A window as shown below will open. Select the link

“upload Tax Return”

iii) Locate the return you had saved for submission. Use the browse button to

navigate to the location of the file.

.

1) Select the tab Tax

Return

2) Select the link Upload

Tax Return.

1) Click here to

locate the return

saved.

Enter your PIN

Enter your password

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iv) Upload your tax return by clicking on the “File upload” button as shown below.

v) The system will then display the message shown below.

NB:

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 “View Summary”.

1) Select the

return

2) Click open.

2) Click here to

upload the return.

1) Note that the

return path has

been appended