Are you an employee and wondering how to file your returns for the previous year?
Every year the government requires you to file your returns for the previous year, failure to which a penalty of Ksh 20,000 is levied upon.
Filing returns is mandatory as long as you have a KRA pin number. If you have no income and have no returns to file, KRA has made a provision for you to File Nil returns.
But if you are employed here’s how to file your employee tax returns;
- Request your p9 form from your employer. This is a form that contains a breakdown of your salary, benefits, allowances, tax relief, total income tax paid among other items necessary for filing of returns.
- Go to the itax portal
- Login by entering your pin, password and the security stamp question
- Click on the Returns menu
- Select File Return
- Select Tax obligation and click next
- Click on the excel sheet link to download the return form
- Activate the macro settings in your excel sheet.To activate the macro settings; go to file-options–trust center
- Click trust center settings
- Click macro settings and click on enable all macros
- Restart the excel file to capture the new settings
- Go to sheet A and enter your KRA pin number
- Enter the type of return i.e. original or amended.If you are filing for the first time in that year select original or if you are making changes to a return that has already been filed select amended.
- Enter return period from and return period to i.e the return period is 1/01/2020 and return period is 31/12/2020
- If you have other benefits or relief relating to employment income like a car, mortgage, home ownership saving plan, insurance relief or exemption certificate for those living with disability, select yes against what is applicable to you under the basic information section sheet A
- The relevant sheet will open depending on what you selected as Yes. You will be required to fill the sheets as per the supporting evidence you have.
- Go to sheet f labeled employment income and enter your employer details
- Enter your Gross pay and other benefits as per the p9 form
- If you have a car benefit, go to sheet i and enter the car registration details and the original cost if the car is owned by your employer.
- If you have a Mortgage go to sheet j and enter the mortgage details.You can get your mortgage certificate from your lender that shows the mortgage account number, the pin and name of the lender, amount borrowed and outstanding and the amount of interest paid.
- If you have a housing savings plan (HOSP) go to sheet k and fill in the HOSP details. You can get a HOSP certificate from the financial institution you are saving with that shows the name and pin of your financial institution the account number and the total deposit of the housing savings plan made as at that moment.
- If you have a life insurance policy go to sheet L and enter the policy details.You can get a policy document from your insurance company that shows the insurance name and pin number, type of policy, policy number, policy holder, commencement date, sum assured, maturity date and amount of premium paid.
- If you are living with disability go to section 6 of the basic information sheet, get a valid exemption certificate issued by KRA and fill in the exemption certificate number and the corresponding period.
- Go to sheet M and enter the employer pin, name of employer, your taxable salary ,tax payable on payable salary and amount of tax deducted as per the p9 form.
- Go to sheet T Tax computation and enter the defined pension contribution which is the actual amount contributed by the employee up to a maximum of Ksh 240,000/= in case your contribution is higher. All this is available in your p9 form.
- In case you have a tax refund that KRA ought to refund ,fill in your bank details in sheet 1 section A before you validate the file.
- Once you have confirmed that your tax computation details are matching with your p9 form and the correct tax due/refund is calculated ,click validate in sheet T at the bottom to generate the zipped file. The zipped file is saved automatically under the documents folder.
- Go back to the itax portal and upload the file that was generated by choosing the file and agreeing to the terms and conditions.
- Click submit
- Download the receipt generated after filing your returns