KRA employment tax filing

How to File Income KRA Tax Returns from Employment Income (P9 Form)

Do not be late in filing your KRA employment income tax returns to avoid incurring late payment penalties which can be in excess of Ksh. 2000 per year. This article will guide you step by step on how to declare your KRA income tax on the iTax Portal by filling the iTax excel spreadsheets.

KRA has made it very easy to file income tax returns at the comfort of your home or office.

You will require the following at hand before filing your individual KRA employment tax returns online:

  1. A computer with Microsoft Office Excel (2007 and above)
  2. Your P9 form from your employer for the previous year (2020 in this case) – Do not worry if you lack a P9 form – read on
  3. iTax login details – KRA PIN and Password

In case you do not have a P9 form from your employer, then get hold of the following:

    1. iTax Portal login details; your KRA PIN and Password
    2. KRA PIN of the company or institution
    3. Gross taxable income (taxable salary) for the year ending (2020 for this instance)
    4. Gross Income Tax for that year
    5. Total Personal Relief (if any)

How to File KRA Employment Income Tax Returns 2021

Step 1: Log in to iTax Portal

  1. Go to the iTax portal: itax.kra.go.ke/KRA-Portal/
  2. Key in your KRA PIN and press Continue
  3. Type your Password and solve the Security Stamp arithmetic
  4. Click Login
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Step 2: Download the iTax Excel Sheet

  1. Click the Returns menu and select File Return
  2. Select Tax Obligation e.g. Resident Individual
  3. The Income Tax – Resident Individual Form page will open
  4. Download the excel form where it is written: Income Tax – Resident Individual Form(Excel)
  5. Leave the browser page open for now as you fill the Excel form

Step 3: Fill Excel Form According to P9 or Employment Income Details

Follow the steps below to file your Individual Income Tax Return for the year ended 2020:

1. Locate the downloaded zipped file (IT1_Individual_Resident_Return_XLS), right-click on it, and select Extract

2. Now open the extracted Excel File

3. In Section A Part 1: Return Information, fill the first 4 lines;

  • Personal Identification Number: Your KRA PIN
  • Type of Return: Original
  • Return Period From: 01/01/2020
  • Return Period To: 31/12/2020

KRA basic information form

4. Now Scroll to the bottom of the document and click NEXT

You are in Section F: Details of Employment Income (Self)

5. Fill in your employment income correctly. These details can be found on your P9 form.

You are required to fill:

  • PIN of Employer
  • Name of Employer
  • Gross Pay (income for the whole year)
  • Put zero for Allowances, Net Value of Housing, and Pension, if you have nothing to fill.
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Remember: The column for Total Employment Income should tally with your gross income.

For the year 2020, under this section, you will also be required to fill:

  • January – March Income
  • April to December Income

The discrepancy comes as a result of the Covid-19 income Tax Relief in the months of April to December in 2020.

6. Click NEXT to go to Section M: Details of PAYE Deducted at Source from Salary (Self)

Fill in correctly the following information:

  • Employer PIN, again
  • Name of Employer
  • Taxable Salary (for the whole year)
  • Tax Payable on Taxable Salary, A (TOTAL PAYE)
  • Amount of Tax Deducted (PAYE), B (TOTAL PAYE)

You can fill A and B with the same TOTAL PAYE for the year.

KRA income tax declaration

 

7. Now continue clicking NEXT until you reach the last section, SECTION T: Tax Computation

  • Look for Defined /Pension Contribution and enter 0 (unless otherwise)
  • Enter Personal Relief as stated on your P9 form
  • Scroll down and click VALIDATE.
  • Wait for some time for the validation to be processed

8. If everything adds up well without errors, a dialogue box will ask you whether you want to generate a zipped file for uploading. Click Yes.

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10. Take note of the name of the generated iTax form, which has your PIN and time generated. Usually located in the My Documents folder for Windows users.

Step 4: Upload the Filled Excel Return Form

Now return to the iTax Portal: Income Tax- Resident Individual Form.

  • Choose type of return as Original
  • Return Period From: 01/01/2020
  • Click Choose File and locate the file generated earlier own after the validation
  • Now Select I Agree to the Terms and Conditions check box
  • Click Submit

You can download the generated receipt as proof of tax returns filing if need be.

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