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Five Changes in ITR Forms for AY 2014-15

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itr forms

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.

Save tax by investing in best ELSS funds

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.

Let me now if you have unique requirement which is not covered in this article. Also leave your valuable comments/suggestions on this piece of content.

  • Sandy

    Do these changes apply
    to all ITR forms?

    • Av Suresh

      Yes, the changes apply to all ITR forms.

  • kalpana

    Is this only for e-filing or manual tax filing as well?

    • Av Suresh

      It is for both e-filing as well as manual filing.

  • Satish

    How to file returns for Intraday trading details (along with Long Term / Short Term gains/losses). Both Intraday trading profits/losses? Overall only losses. Which ITR form? Who can help on this?

    • Av Suresh

      Intraday trading income is treated as income from business/profession for the purpose of tax filing. Losses cannot be carried forward. Gains have to be reported as said before.

  • Vijay

    Hai Suresh, I am a retired person gets only bank interest as income. What is the ITR form I should fill?

    • Av Suresh

      You should fill ITR-1. If the interest income is less than Rs. 2 lakh p.a., it is not mandatory for you to file your taxes.

      • Vijay

        Thanks Mr.Suresh.
        My Interest income is more than Rs.Lakh p.a.
        When should we start filing the returns?

        • Vijay

          More than 2 Lakhs p.a.

          • Av Suresh

            Tax filing has already started. Last date is 31st July, 2014.

  • sonara

    hi,last few years I could not fill income tax return of my wife(due to income was less than 2 lakhs).But now income from house rent and salary from teaching(without form 16)is more than 2 lakhs.can I fill income tax return through e filling?which itr form will be suitable.If i want to fill itr for fy 12-13 with latest then penalty will be?

    • Av Suresh

      You need to file ITR-1 in this case. You can still file ITR for Fy 2012-13 without any penalty if there is tax payable is nil. Else, penalty will be 1% per month on the tax payable.

  • Bhavesh Furia

    Section 87/A looks new. Could you explain more about it ?

    • Av Suresh

      Section 87/A refers to the tax credit/rebate of Rs. 2000 for every individual with total income up to Rs. 5 lakh p.a. It means your taxable amount will reduce by Rs. 2000. You can know about more tax related changes for 2014 from this article – http://www.investmentyogi.com/8-important-tax-changes-in-2014/

      • Bhavesh Furia

        Thanks for informing. Looks like I can benefit from it :)

        • Av Suresh

          Yes, Bhavesh. Almost 42,000 tax payers will be reaping the benefit of this section.

          • Bhavesh Furia

            Around 42000 ? So you mean to say there are around 42000 people whose salary is < 5 lakhs :-o ? Isn't that a very small figure ?

          • Av Suresh

            I quoted the wrong number in my reply. In fact, it is 1.8 crore, not 42,000. Most of the tax payers are in this tax bracket.

          • Bhavesh Furia

            Yes, thought so. I think the figure which you mentioned is for number of people earning Rs. 1crore per year as said by Mr. Chidambaram :)

          • Av Suresh

            Ya,I quoted that figure by mistake.

  • abhishekchanda

    I made some short term capital gains in shares and liquid funds. I see that I have to give the total of both in capital gains section and being taxed @15% for capital gains. What I knew was short term capital gains are taxed at the prevailing rate of the taxpayer. I am in 10%. Shouldn’t the tax on capital gains be 10% also. Am I missing something.

    • Av Suresh

      Abhishek, Under schedule CG i.e. capital gains, you need to declare gains from shares, land, etc in different colums. Short/Long term CG tax will be calculated as per the rules i.e. 15% for short term CG in shares and as per tax slab in case of liquid funds. The total amounts from each will be added later in tax payable.

      • abhishekchanda

        Where do I show the CG of the liquid funds separately in the form. There are only two sections – from sale of land and building and from shares and equity mutual funds.

        • Av Suresh

          In the 5th sub-section i.e. for assets other than 1,2,3,4.

          • abhishekchanda

            thanks. also, would be grateful if you could tell how to mention long term capital gains with indexation and from where to get the value after indexation

  • Savitha

    Hi i have a doubt in HRA..recently resigned so past 8 months HRA is not listed in form16..how can i show HRA without form 16 during filling AY2013 2014

    • Av Suresh

      You can enter these details if you have the numbers with you. Form 16 is for your reference. However, cross check with your employer for the accuracy.

      • savitha

        Thank you suresh….i have got HRA allotment from the employer and know well aboutctye three options of HRA calculation.my doubt is can i just enter calculated hra in filling rather no rent receipt submission needed..future questions from income tax

        • Av Suresh

          Yes, you can enter.But, rent receipts have to be submitted to your employer, who will in turn submit to IT department on your behalf. If you did not submit to your employer, you need to attach the proofs along with the tax filing documents.

          • savitha

            Thanks a lot for your kind reply…under which option can i attach rent receipt & 87 A 5 lackh refers income after all deductions or gross income…

          • Av Suresh

            You need to send the receipts along with the print outs of documents that you send to IT department to finish the E-filing process. Section 87A applies to total taxable income after deductions.

  • Murali Subramanian

    Can you please tell me which sections of the new ITR 2 (Schedule CG) cover LTCG arising out sale of Debt Mutual Funds & Gold ETFs? Can I use B3 in respect of LTCG without indexation and B7 for LTCG with indexation for the CG arising out of sale of Debt Mutual Funds & Gold ETFs?..

    • Viral

      I have same question:
      I am not able to see a suitable option for reporting LTCG with indexation
      Following are the sections in schedule CG for LTCG..
      B1 – for land or building (without indexation )
      B2 – for bonds or debentures (with indexation)
      B3 – for listed securities or units or zero coupon bonds (with out indexation)
      B4 – NRI
      B5 – NRI
      B6 – NRI
      B7 – not in B1 to B6 but (without indexation )

      So where does one show debt fund LTCG with indexation ? Should I show in B2 only ? as that the only option with indexation but its meant
      for bond & debenture only

      • Av Suresh

        Yes, you can show it in B2 as it relates to debt investment.

        • Murali Subramanian

          @Av. Suresh: But B2 has no provision for Indexation..! B7 appears to be the only section that has a provision for indexation in respect of assets other than Land & Building.
          @Viral72: Please recheck your list. B1 should read as (with Indexation) indexation. B2 should read as (without indexation) & B7 should read as (With Indexation)

      • Murali Subramanian

        Please recheck your list. B1 should read as (with Indexation) indexation. B2 should read as (without indexation) & B7 should read as (With Indexation)

        • VIRAL

          Actually it was like this in the PR1 version of Java utility I had downloaded in 1st week of jun. I downloaded latest version where it seems to be fixed.
          Then I think we can use B7

  • Hemant

    I have received dividend of Rs 1000 on shares and more than Rs 5000 from tax free bonds which ITR form should i fill. Do i need to pay tax on infrastructure bonds i purchased

    • Av Suresh

      Dividend from shares and tax free bonds is not taxable. It comes under exempt income category. You can fill ITR-2 for this purpose. You do not have to pay tax on infra bonds.

  • Amit

    If my capital gains from mutual funds are less than 3000, do I still need to file ITR 2 or is there a provision to file ITR 1?

    • Av Suresh

      If there is capital gains, you need to file ITR-2 irrespective of the amount.

  • Susheel

    When will the IT return form from investment Yog (Tax Yogi Free IT Return online) for AY 2014-15 be available? I have been filing my returns with the help of Tax Yogi for the past 2 years.

    • Av Suresh

      Unfortunately, we are not able to provide this service for AY 2014-15 due to technical reasons.

  • Anil Bains

    i came across some CA which used to say that if i will file my return through them they will charge 350/- rupees and in return i will get upto 3000/- rupees from income tax department as a refund.how’s that possible.i am eager to know ifu helpkme regarding this.

    • Av Suresh

      If you are eligible for refund, you will get it whether you file through CA or yourself.

  • Sashi

    Hi Suresh, I have sold some RSUs from my company headquartered in US. I made some capital gains and religiously paid capital gains tax as per my salary slab rate of 30%. I understand I should be filing ITR-2 However, I am not able to figure out which section of CG sheet of ITR-2 is applicable in my case? Most of them shows CGT calculation @ 15% whereas being US based RSUs I think I should be paying 30% tax on CG. Am I missing something?

  • Sudhir

    Hi Suresh,
    I have received royalty income for my books sold in the US. I have received Form 1042-S which indicates the tax already deducted on the income in US. How do I reflect this entry in the ITR to avoid double taxation?

  • Suresh Charles

    If someone was laid off in Jan 2013, is currently job hunting, and has en-cashed life insurance policies amounting to Rs.9 lakh to pay the bills, does he need to file any returns, and if yes, what form? The policies sold were tax investments, the returns of which are tax free.

  • Sudhir

    Hi Suresh,;
    Could you please guide me

    I have received royalty income (exempt under QQB) for my books sold in India and abroad
    As per your advise I am using ITR 2 for filing my returns. Under which head do I show royalty income? Do I need to show income from india and abroad separately? I have received form 1042-2 from us tax dept showing my withholding tax. can I claim rebate by entering the tax paid details.

  • jayarama

    Being ex serviceman, defence pensioner getting less than rs.2lac/pa as pension, is the amount exempted under u/s 10 of it Act?

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