13 Changes in Income Tax Return Form for AY 2014-15

Snapshot of changes in Income Tax Return Form for AY 2014-15

The Income Tax Department has notified major changes in Income tax return form AY 2014-15 relevant Financial Year 2013-14;

1. All taxpayers filing E-Returns will have to compulsorily update their correct mobile numbers and E- email ids
2. Income Tax Refund will be issued directly in the bank account of the taxpayer through ECS, cheques are discontinued. Therefore be careful while mentioning Bank Account Number and IFSC in the Income tax returns
3. While claiming TDS in Income Tax return facility has been given to bring forward the TDS of previous year and to carry forward TDS to next year. Due to this reconciliation of TDS claims 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, a taxpayer is eligible for a tax relief of maximum Rs.2,000, if his annual income is Rs. 5,00,000/- or less, which needs to be separately shown in the income tax return in the space provided.
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, 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 separate details of all allowances separately. This will help Govt. to track proper claim of such deductions
8. From this year the details of short and long term capital gain will have to be given in three parts viz.
   1. Sale of plot / flat
   2. Sale of shares and mutual funds which is subject to STT
   3. Sale of other assets.
9. Further in case of sale of land or building, value for the purpose of stamp duty 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
10. 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
11. If a taxpayer 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.
12. As per newly inserted section 43CA if, a taxpayer has sold capital assets below stamp duty value, the difference between the two will be considered as deemed income of the taxpayer and would be subject to income tax
13. If there is more than one owner of the house then, while mentioning details in the schedule of Income from House Property the percentage of co ownership will have to be given.