Tax filing is underway. You must be getting ready with your investment proofs & form 16 to file your taxes for AY 2014-15 (FY 2013-14). The first thing that comes into your mind when you think of tax filing is ITR form. This is the pathway given to you by IT department to know the status of your taxes. There have been changes made to these ITR forms this year. Here are 5 changes made in these forms:
(Also see: Incomes not to miss during tax filing)
1) Additional tax deduction on home loan
As you know, FM had announced in the previous year’s budget speech that there would be an additional tax deduction on home loans. This is exclusively for first time home buyers. Amount of loan sanctioned should not exceed Rs. 25 lakh and value of residential property should not exceed Rs. 40 lakh. Another condition is that loan should be sanctioned between 1st April 2013 and March 31st 2014. A new field named section 80EE has been added in the new form in order to incorporate this change.
2) Rebate u/s 87A
A rebate will be available for those whose total taxable income does not exceed Rs. 5 lakh p.a in FY 2013-14. This rebate is limited to Rs. 2000 or tax payable, whichever is lesser.
(Also see: Capital gains to declare during tax filing)
3) Surcharge on income above Rs. 1 crore
This is popularly being termed as the super rich tax. There will be 10% surcharge on total income above Rs. 1 crore. A field has been added in the new ITR form to include this surcharge.
4) Detailed exempt income and capital gains
Till date, only the consolidated figures of exempt income and capital gains were required to be entered in the ITR forms. However, now the scenario has changed a bit. IT department wants to know the detailed incomes from these two categories. Separate fields have been provided for you to enter details of individual exempt incomes and capital gains.
5) Refund only through ECS
Earlier, there were two options of receiving the income tax refund (if any). One was direct debiting i.e. ECS and another through Cheque. However, now the cheque mode has been disabled. Any refund will directly reach the bank account.
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