How to File Individual Income Tax For KRA in 2021

Individual Income Tax is charged for each year of income on all the income of a person, whether resident or non-resident, which accrued in or was derived from Kenya.

Income tax is a direct tax that is imposed on income derived from Business, Employment, Rent, Dividends, Interests, Pensions among others.

An individual income tax return is a declaration of income earned by an individual within a particular year. Also, every individual with a KRA PIN is required to file this return.

You can file your Individual Income Tax Returns for a particular year of income, anytime between 1st January to 30th June of the following year.

Submission of income tax returns is an online process done through KRA’s iTax online platform.

If you have no income to declare, you are required to file a NIL return. You can now file a NIL return.

After filing the return online via iTax, generate a payment slip and present it at any of the appointed KRA banks to pay the tax due.

One can also pay via Mpesa using the KRA Pay bill number 572572.

The Account Number is the Payment Registration number quoted at the top right corner of the generated payment slip.

What is the penalty for late filing and paying?

Date: Individual Income Tax Returns should be filed on or before 30th June of the following year.

Penalty on late filing: Whichever is higher between, 5% of the tax due or Kshs. 2,000.

Penalty on late payment: 5% of the tax due and a late payment interest of 1% per month on the unpaid tax until the tax is paid in full.

What if I am exempt from Individual Income Tax?

You are still required to file returns and enter a valid Exemption Certificate Number.

 

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