Online Income Tax Return filing for FY 2012-13 (AY 2013-14) is different in many ways from previous years. IT department has brought in many changes which need to be taken into consideration while filing tax returns. IT Department has also been sending notices as tax demands, notices treating the return filed as defective or even adjustment of refunds or other issues.
This article would address these changes in the e-filing of tax return which would assist businesses and individuals to file their taxes error free.
E-Filing has become mandatory for assessees having income more than Rs. 500,000 in FY 2012-13 – This is another step by the IT Department to bring in more and more tax payers under the ambit of online ITR Filing which is transparent and beneficial for the IT department and also for tax payers at large.
Disclosures of Assets & Liabilities in ITR form – This is another major change brought in by the IT Department. The objective of this seems to gather as much information as possible. Basically if you are an individual/HUF having income of more than Rs 25 Lakhs, you need to disclose details of assets and liabilities in newly introduced schedule AL in the ITR Form 3 & ITR 4.
More stringent rule for ITR applicability various assessees – The IT Department has brought in changes, wherein they have specified forms for set of income and also assessees. For instance, ITR (Sahaj) can not be filed in case of losses from Other Sources head is more than Rs 5000 (winning from horse race, lottery etc), or if there is a double taxation avoidance agreement exemption. Thus, it pertinent to select right ITR form with respect to income otherwise the tax returns may be termed as defective.
Mandatory E-Filing of Tax Audit and Transfer Pricing Reports – The institute of Chartered Accountants terms this as game changer for CAs in practice. Businesses requiring Tax Audit, in case their business Income exceeds Rs.1 Crore and/or Professional Income year Rs 25 Lakh, required to get their accounts audited from a CA. Earlier, there was no requirement to e-file this audit report, but with this year, the same is required to file along with the tax returns. Since, this is not a substitute to already existing Manual Tax Audit Reports, it would burden additional compliance cost for businesses.
Interest from saving bank interest and Co-operative Bank/Post Office – A new section 80TTA has been introduced, wherein interest upto Rs. 10,000 is exempt from taxes, if earned from a saving bank account, or Co-Operative Bank/Post Office.
Senior Citizen not having business income need not pay Advance Taxes – Senior Citizens i.e. Assessee over 60 years of age (those who turn 60 anytime during the Financial Year) are exempt from paying Advance Tax if they do not have income from Business or Profession. This is a relief for pensioner senior citizens for whom submitting Advance tax was an unnecessary hassle.
Preventive Health Check Up For Rs 5000 – Under Section 80 D, a health-care check- up in addition to medical insurance premium is an allowable deduction which has been introduced from FY 2012-13. Such preventive health check up may be for self/spouse/dependent children/parents and may be paid via cash/cheque. The total limit of Rs.15000/Rs.20000 per person remains, hence we can say the overall limit remains and this is simply a sub-ceiling. It is to be separately mentioned in the return.
You can visit Taxmantra’s Online ITR Filing Page. or call them at +918820820811 & Press (1) between 9:30 am to 9:30 pm from Monday to Saturday to avail this service or send an email at – “email@example.com”