15 points for filing Income tax returns for FY 2015-16 of individuals

CA Pratik Anand

The time for filing the income tax return for FY 2015-16/AY16-17 is here. In this situation, following are some important points that every individual must know for filing income tax return this year.

1. E Filing of return is mandatory for any assessee having total income of Rs. 5 Lakhs & above and for Individual/HUF, being resident, having assets located outside India.

2. Deduction for transport allowance increased from Rs. 800/- per month to Rs. 1600/- per month.
   

3. Increase in surcharge@ 12% in case of super-rich. This surcharge is to be levied on all non-company assesses with income exceeding Rs. 1 crore.
   

4. Asset/Liability details are to be given by every individual/huf having total income exceeding Rs. 50 lakhs.(Earlier provision for those having having business income and total income above Rs. 25 lakhs discontinued)
   

5. Deduction of tax at source of 10% on premature taxable withdrawal from EPFS above Rs. 30,000/- during the year.
   

6. Donations made by donor to the Swachh Bharat Kosh and to clean Ganga Fund will be eligible for 100% deduction from total income. 100% deduction will also be allowed for donation to national fund for control of drug abuse.
   

7. Deduction under section 80C, to the parent or the legal guardian of a girl child of the sum paid or deposited during the year in name of the girl child in the Sukanya Samridhi Account Scheme. Interest on deposits in the scheme will be exempt and withdrawal from the scheme will also be exempt.
   

8. Section 80D has been amended to raise the limit for deduction from Rs. 15,000 to Rs. 25,000/- and from Rs. 20,000/- to Rs. 30,000/- for senior citizens.

9. Individual taxpayers can claim TCS in case of deduction u/s 206 (1D) in case of purchase of bullion and jewellery.

10. Higher deduction of Rs. 60,000/- under section 80DDB will be allowed for expenditure on medical treatment of a senior citizen of certain chronic diseases. Deduction of Rs. 80,000/- will be allowed for treatment of very senior citizens.
    

11. Limit u/s 80DD raised from Rs. 50000/- to Rs. 75,000/- in respect of person with disability and limit increased from Rs. 1,00,000/- to Rs. 1,25,000/- in respect of persons with severe disabilities.
    

12. Limit U/s 80CCC & 80CCD raised to Rs. 1,50,000/-. To provide for an additional deduction of Rs. 50,000/- for investment in NPS, a new row has been introduced in forms ITR 1, 2, 2A, 3, 4, 4S.
    

13. No need to disclose share of income/profit from firm/AOP/BOI which is exempt from tax in the hands of the individual.
    

14. In case of Non-residents earning royalty or fee for technical services from Indian Govt./Entity, the tax rate u/s 115A has been reduced to 10%.
    

15. Separate column has been introduced in ITR 3 & 4 in schedule IF where partners of firms can mention whether the firm is liable to transfer pricing audit.

(The author is a chartered accountant in practice at New Delhi and can be contacted at: Email ID: [email protected] or on Mobile: +91-9953199493)