Here are a few changes in the procedure for filing your tax return this year
Changes in Exempt Allowances:
It is now mandatory to display the breakup of Exempt allowances under section 10 in Form 16 as well as in the income tax return. The major allowances to be disclosed under this section are:
- Travel concession/assistance received u/s 10(5)
- Tax paid by employer on non monetary perquisite u/s 10(10CC)
- Allowance to meet expenditure incurred on house rent u/s 10(13A)
- Other exempt allowances u/s 10
Changes in Deductions:
- Resident Individuals whose net taxable income is upto Rs. 5 lakh will get a tax credit of Rs. 2,000 u/s 87A.
- Deduction of life insurance premium amount u/s 80C can be claimed to the extent of 10% of actual capital sum assured, if the policy has been issued on or after 1st April 2013. The eligibility for deduction is 15% of the sum assured, for a person with disability.
- Deduction u/s 80CCG (Rajiv Gandhi Equity Saving Scheme) is applicable to ‘New Retail Investors’ having gross total income upto Rs. 12 lakh (instead of Rs. 10 lakh earlier), against investment in listed equity shares or units of equity oriented RGESS fund. Maximum available deduction is 50% of the amount invested i.e. a maximum of Rs. 50,000 in a year. The said deduction is allowed for 3 consecutive assessment years (instead of 1 year earlier), beginning with the assessment year in which shares/units were first acquired.
Changes in Surcharge:
Surcharge @ 10% of the income tax payable is applicable, in cases where total taxable income is more than Rs. 1 crore.
There were about 90,000 taxpayers declaring income above Rs. 1 crore in FY 2013-14. Hence, this change will impact less than 1% of the total return filers.
- Refund amount (if any) will now be directly credited into your bank account and there will be no option for refund by cheque. Hence, you must disclose Bank Account number along with IFSC code in your income tax return.
- If you are filing an income tax return in response to a notice issued u/s 139(9)/142/148/153A/153C by the Income Tax Department, it is now mandatory to provide date of such notice in your return.
Other tax changes that are applicable for the assessment year 2014-15: