How To File KRA Returns On Your Income in 2021 | Different Methods

Are you looking for a way How To File KRA Returns On Your Income? If yes, then this informative article is for you. You will be given detailed information on How To File KRA Returns On Your Income In Kenya.

How long has it been since the commencement of the iTax platform? It is hard envisioning the currently efficient tax filing system without its technological developments that have taken years to implement. It started operations in 2014, allowing Kenyan taxpayers to file and pay for their taxes online regardless of the category.

Today, Kenyans throng the platform to access the revenue authority’s services, the income section being the most popular. And you can complete your filing process using their easy and straightforward process.

Requirements To File KRA Returns Online In Kenya

The iTax system has made it easier for Kenyans to file KRA returns online while at home via the official KRA website. Any taxpayer or agent has access to the KRA online portal and can file KRA tax returns as long as they have all the credentials.

You should fulfil a few things before you fill KRA returns form online or utilize the downloadable excel workbook.

• You should have your employer information if you are employed. Ensure your employer’s information includes their KRA PIN. Request your employer to give you your P9 form seeing it has almost all the information required when filing your returns.
• Have all financial statement nearby if you are running a business.
• The mortgage interest certificate/underwriter’s PIN/Insurance Premium Certificate is also essential.
• Have your withholding tax certificates, if needed.
• Collate any other relevant documents regarding claims for deductions or income received for evidence purposes and information extraction for the iTax portal.

After the introduction of iTax, most people did not know how to file tax returns online. As such, they relied on Huduma Centers and KRA branches.

However, with the latter’s almost always busy, cybercafé attendants learnt how to file tax returns KRA and have since aided thousands of Kenyans. It is a good idea to learn how to file KRA returns by yourself to be self-sufficient.

How To File KRA Returns For Employees

If you are employed and don’t have any other business, you can use the KRA online PAYE returns portal to file your taxes. All you need is your P9 form that your employer usually issues.

A P9 form is a tax-deduction document that employers issue their employees. It possesses your basic salary, benefits, allowances, pension contributions, gross pay, tax charge, and personal relief for the entire year.

You can use the following process to file your tax using the ITR For Employment Income only option.

• Open your browser and visit the official iTax portal (itax.kra.go.ke/KRA-Portal/).
• On the platform, you will notice a section requiring your official PIN and password. Enter your issued credentials and answer the arithmetic sum and click, log in.
• Once logged in, head over to the returns menu and click to avail a drop-down list. Choose ITR for Employment Income Only.
• Select the return period and then choose yes for the question, do you have employment income. Press next when done.
• This will avail an information page possessing all your personal and tax details. You will have basic information and other sections that you are supposed to check and confirm whether the details are correct.
• Under section F, confirm whether the details of your employment are correct and as well as the gross pay and other allowances. You will be confirming this using your P9 form. If the Teachers Service Commission employs you, you can verify if the TSC employer PIN is written correctly.
• Head over to sheet M, details of PAYE deducted and confirm if everything is entered correctly.
• You can also go to section Q and capture any payment data made before filing the return.
• Open section T, tax computation and enter the defined pension contribution amount per your P9 form and personal relief.
• Once you are satisfied everything is filled correctly, slick submit and download the e-return acknowledgement receipt.

You can file KRA returns using another, a bit complicated process different from the above. Here, you will first have to download the excel workbook and populate your details using the following procedure.

• Log in to the KRA iTax portal using your credentials that includes your PIN and password.
• Click on the returns tab and chose file return from the drop-down list.
• Choose your tax obligation (Income Tax-Resident Individual), then click Next.
• Download the income tax resident individual form (you will receive instructions on how to download the form to your computer and unzip it).
• Open the excel file and populate all the relevant details using your P9 form. This will include your basic information, employment income, PAYE deducted and tax computation (personal relief).
• Once satisfied that everything is entered correctly, click the validate button to approve the data.
• Upload the generated excel sheet and click the submit button on the iTax platform.
• Download the returns acknowledgement receipt to confirm that you have completed the filing process.

Taxpayers should note that any negative figure when filing KRA returns means that they are due for a refund. On the other hand, a positive figure indicates that one should pay KRA a certain amount.

How To File Nil Returns On The iTax Platform

What happens when you don’t have any income to declare in a fiscal year? The Kenya Revenue Authority allows you to file nil returns in such instances. You can complete the process using the following steps:

• Visit the official website for KRA, then log in using your KRA PIN and password. Answer the security question asked to validate your login process.
• Navigate to the returns menu and select the File Nil Returns option.
• After clicking next, you will be directed to the page for nil returns, where you are expected to select your type of taxation and tax obligation.
• After clicking next, your screen will display the Income Tax Resident Individual Nil e-Return/PAYE form, with the period already populated.
• Confirm if everything is correct and click submit. You can press the back button to make any corrections to the nil return filing information.
• A successful submission message will then be displayed, followed by an acknowledgement receipt.

As long as you are a Kenyan citizen and above 18 years, you must file returns on the iTax platform. The nil return option is excellent for people lacking a primary income source or yet to complete their studies.

How To File Returns For A Company

Do you want to know how to file returns on iTax for your company income? Today’s company registration process requires every firm to have a personal identification number. Therefore, every firm is automatically enrolled in the system upon registration. You can file your company’s income using the following procedure:

• Log in to the portal using your company credentials.
• After clicking submit, the company’s iTax profile page will open on your browser.
• Click on the file returns option under the returns drop-down list.
• It will direct you to the Income Tax-Company form page, whereby you can download the excel workbook for your company.
• Extract the workbook to your computer and start populating all the required details according to your company’s financial statements.
• Once done and verified, click validate and upload the form on the iTax platform.
• You will get an acknowledgement receipt upon successful submission.

If you have a dormant company that has not made any income for the financial period, you can choose the file nil returns option on the iTax platform.

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