Kenyan residents are required by law to declare their income tax returns to the Kenya Revenue Authority (KRA) by 30th of June every year.
According to the Income Tax Act, Section 52B, income tax shall be charged for each year of income upon all the income of a person, whether resident or non-resident, which accrued in or was derived from Kenya. Subject to this Act, income upon which tax is chargeable under this Act is income in respect of –
gains or profits from –
- a business, for whatever period of time carried on;
- employment or services rendered
- a right granted to another person for use or occupation of property;
For the purposes of this article, we offer you a step by step process for Filing of 2020 Individual Income Tax Resident Return (ITR) for employment income only;
Step 1:Open your browser and go to https://itax.kra.go.ke/KRA-Portal/
Step 2: Enter your KRA PIN and password and click Continue.
Step 3: On the Returns Menu, select the tab File return and then choose the Income Tax Return (ITR) obligation for Employment Income Only
Step 4: Download the Excel/ODS Template using the link provided.
Step 5: Under basic information, answer the questions asked appropriately and Click ‘Next’
Step 6: Provide all the required details for ‘Basic Info’ sheet of the return and click on ‘Next’ to proceed.
Step 7: Provide all the information required of the employment income for the year in Section F (Employment Income) that starts from row A3 to G3.
Step 8: Proceed to section F and move to columns H (H6 – H9). Specify the gross income that you earned from January to March and April to December together with their respective pension contributions as captured in the P9 Form issued by your employer.
Step 9: Move on to section M and enter the details of the PAYE that was deducted and fill in this details as per the P9 Form for the whole year.
Please note that if you have Mortgage Interest an extra sheet will open when this option is selected and should be completed based on the mortgage interest that was paid for January – March 2020 and April – December 2020 respectively.
The same applies to those with House Ownership Savings Plan (HOSP) – complete this as per the contributions made.
Step 10: Move on to section T ((Tax Computation). Here, captures the total pension for the year. Make sure that it adds to the amount declared under sheet F for January to March 2020 and April to December 2020.
Similarly, also capture the Personal Relief for the year. There is a maximum limit of Kshs. 25,824.
Step 11: Click on ‘VALIDATE’ to validate the return and to generate an upload file for uploading to i-Tax once you have confirmed the tax due/refund.
Step 12: Move back to the Returns Menu, select ‘File Return’, choose Tax Obligation as ‘Income Tax – Resident Individual,’ then click ‘Next’ and click on browse to upload the zip file and submit your return
For more assistance regarding filing your tax returns, please contact;
Beatrice Kamau
Outsourced Services Manager
t +254 715 248882 | +254 733 533449
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