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ISO 9001:2000 CERTIFIED
USER GUIDE FOR FILING
INDIVIDUAL INCOME
TAX RETURN ON-LINE
USING THE TAXPAYER
SOFTWARE (TSW)
1
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
2
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
3
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
4
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.
5
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.
6
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
7
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.
8
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.
9
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)
10
After clicking yes, the detailed report below appears. Fill in the relevant fields as per your
financial statement
11
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)
12
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
13
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
14
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.
15
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
16
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.
17
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
18
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
19
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.
20
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
21
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
22
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