07/07/2014
Major changes in Income Tax Returns this year
are as under:
1. All taxpayers filing E-Returns will have to
compulsorily update correct mobile number and
E- Mail ID's. Otherwise there will be login
issues before uploading of return on income tax
Depts Website.
2. Now onwards Income Tax Refund will be
issued directly in the bank account of the
taxpayer through ECS only, cheques are
discontinued. Therefore at most care should be
taken while mentioning Bank Account Number
and IFSC Code in the income tax returns.
3. From this year while claiming TDS in Income
Tax return facility has been given to carry
forward the TDS of previous year and brought
forward TDS to next year. Due to this
reconciliation of TDS claimed on Income and
total available TDS as per Form 26 can be
made. Tax payers which follow cash system of
accounting will be benefited, like Doctors,
Advocates, CAs and other professionals.
4. As per newly inserted Section 87A if annual
income of the taxpayer is up to Rs. 5,00,000/-
then Tax relief of maximum of Rs. 2,000/- is
given. For claiming this relief separate space
has been inserted in the return.
5. As per newly inserted Section 80EE if
taxpayer has purchased house up to Rs. 40
Lakh and taken housing loan of Rs. 25 Lakh
then taxpayer can claim deduction of interest up
to Rs. 1 Lakh. For claiming this deduction
separate space has been inserted in the return.
6. If income of the taxpayer is more than Rs. 1
crore then surcharge of 10% is applicable. For
this separate space has been inserted in the
return.
7. All salaries taxpayers will now have to give
now separate details of LTA (Leave Travel
Allowance) and HRA (House Rent Allowance)
and other allowances separately. This will help
Govt. to track proper claim of such deductions,
recent HRA and LTA fallacious claimed by some
MPs and Govt. taxpayers may have forced for
such changes.
8. From this year the details of short and long
term capital gain will have to be given in three
parts viz.
a) sale of plot / flat
b) sale of STT paid shares and mutual funds
c) sale of other assets.
Further in case of sale of land or building Stamp
Duty Value will have to be mentioned. Further if
taxpayer is availing exemption under capital
gains then value of newly purchased asset, date
of acquisition of the asset and if invested in
capital gain account then its details will have to
be mentioned.
9. Corporate or LLP assessee will have to
mention Corporate Identification Number or LLP
Identification Number. Further Director or
Designated Partner Identification Number will
have to be mentioned. This will help in cross
check of information with other legal
departments by income tax dept or visa a
versa.
10. If assessee carrying on business is taking
deduction of bad debts of more than Rs. 1 Lakh
of single person, then his PAN will have to be
mentioned.
11. As per newly inserted section 43 CA if,
taxpayer have sold other than capital assets
below stamp duty value (eg. builders /
developers) then the difference between the two
will be considered as deemed income of the
assessee and tax will have to be paid on it. For
this separate space has been inserted in the
return.
12. If there is more than one owner of the
house then, while. details in the schedule of
Income from House Property the percentage of
co ownership will have to be given.
13. From this year e-filing of wealth tax return
is compulsory and in this return the details of
all wealth whether taxable or not, will have to
be given in depth.
