CA Pratik Anand

The financial year is over and time for filing the income tax return for FY 2014-15/AY15-16 is around the corner. In this situation, following are some important points that every individual must know for filing income tax return this year.

1. Basic exemption limit increased by INR 50,000 to INR.2,50,000 for Individuals taxpayers.- Income Tax Rate Chart / Slabs for AY 2015-16 / FY 2014-15

2. Section 80C deduction limit raised to INR 150,000.

3. Deduction limit for interest expense in respect of self-occupied property raised from INR 150,000 to INR 200,000. Read- Home Loan Interest Exemption Limit increased to Rs. 2 Lakh

4. Long term capital Gain on sale of units of Mutual Fund (other than equity oriented) @20%.

5. Amendment in the criteria of holding period for treating an asset as Short Term Capital Asset, as under:

For share in Company (listed) – 12 months;

For share in Company (unlisted) – 36 months;

For other unlisted securities – 36 months;

For other listed securities (including units of Business Trust) – 12 months;

For unit of Mutual Fund (equity oriented) – 12 months;

For unit of Mutual Fund (other than equity oriented) – 36 months;

For zero coupon bond – 12 months

6. As per CBDT circular No. 6/2015 dt. 09.04.2015, No Capital gains will arise in respect of units of Mutual Funds under the Fixed maturity Plans on extension of their term.

7. Plugging of loop hole to prevent misuse of Section 54EC

Investment within six months from the date of transfer of the asset in specified securities not exceeding fifty lakh rupees is only permitted.

Investments within six months but in different financial years of upto 50 lacs each are not allowed.

Budget 2014 – Exemption U/s. 54EC cannot exceed Rs. 50 Lakh despite investment in two Years

8. Investment only in one residential house in India allowed for claiming exemption under Section 54 or Section 54F. Read-Budget 2014 – Benefit U/s. 54 / 54F available only if investment is made in one residential house situated in India

9. No exemption allowed for investment in Residential House located outside India.

10. Advance received and forfeited in relation to a transfer of capital asset now taxable immediately under the head ‘income from other sources’ and not to be reduced from the cost or written down value or the fair market value, as the case may be, in computing the cost of acquisition of such asset.  Read- Budget 2014 – Advance forfeited against transfer of Capital Assets taxable as other Income as Income from other sources 

11. Presumptive income in respect of taxpayers engaged in the business of plying, hiring or leasing goods carriages increased to a uniform amount of INR 7,500 per month for all types of goods carriages. Read- Budget 2014- Presumptive income amount increased to Rs. 7500 for Business of Plying, Hiring or Leasing Goods Carriages 

12. Employer’s contribution to NPS by non-Central Government employers eligible for deduction up to ten per cent of salary in a financial year, irrespective of the employees’ date of joining of employment and without any limit. The deduction in respect of employee’s contribution is restricted to INR 100,000 within the overall limit of Section 80CCD. Also Read- Extension of tax benefits U/s. 80CCD to private sector employees

13. Aggregate payments of INR 100,000 or more under life insurance policy not exempt under Section 10(10D) liable to withholding tax at two per cent. Also Read- TDS on non-exempt payments made under life insurance policy 

14. Transfer of government security, carrying a periodic payment of interest, by a non-resident to another non-resident and made outside India through an intermediary dealing in settlement of securities not to be regarded as transfer and accordingly not liable to capital gains tax. Read- No Tax on Transfer of Government Security by one non-resident to another non-resident

15. Trading in commodity derivatives carried out through a recognised association and which is chargeable to commodities transaction tax will not be treated as a speculative transaction. Trading in commodity derivatives not to be considered as a speculative transaction

Some More Points to Take care (Updated on 08.07.2015)

1. it is proposed that only the IFSC Code and account number of all the current/ savings account, which are held at any time during the previous year, will be required to be mentioned.

2. In respect of foreign travel details, excessive disclosures like details of foreign trip or expenditure incurred will not be required to be filled up. Instead, only passport No. would be required to be given.

3. An individual or HUF who does not have capital gains, income from business/profession or foreign asset/foreign income can file a shorter version of ITR2, i.e. ITR 2A.

4.  E-Filing mandatory if claiming refund by Individuals/HUF.

5. An individual, who is not an Indian citizen and is in India on a business, employment or student visa (expatriate), would not mandatorily be required to report the foreign assets acquired by him during earlier years in which he was non-resident if no income is derived from such assets during the relevant previous year.

It comes as a big relief for the expatriates who come to India for employment and may qualify for resident and ordinary resident (ROR) in India considering their duration of stay in India.

6. No filing of hard copy of acknowledgement with CPC Bangalore if Aadhar No. is given in the return.

7. Last date of filing of filing return has been extended to 31.08.2015.

(The author is a CA in practice at Delhi and can be contacted at: E-mail: capratikanand@gmail.com, Mobile: +91-9953199493)

Read Other Articles of CA Pratik Anand

Author Bio

Qualification: CA in Practice
Company: Pratik & Associates
Location: New Delhi, New Delhi, IN
Member Since: 10 Jun 2017 | Total Posts: 52
Pratik Anand is the founder of youronlinefilings.com, an online startup for business registrations, annual business compliance services, Tax filings, book keeping, legal consultancy etc. He is a Chartered accountant by profession and has special flair and expertise in the area of direct Taxation. H View Full Profile

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0 responses to “15 things to know while filing Income tax returns for FY 2014-15”

  1. CA. Subhash Chandra Podder says:

    Good write up. Keep it up.

  2. Isha Mehrotra says:

    Very Informative.. !!

  3. Saurabh Gandhi says:

    Very Informative.

  4. Durga Prasad Agrawal says:

    I am working as a Corporate Financial Advisor.
    Any one can contact for Investment Planning In financial Market like:
    LIC, Mediclaim , Mutual Fund (SIP/ Lumsum/ Closed Ended Fund), Child Education & Marriage Planning, PENSION & Retirement Planning, Income Tax Return Filling(Online), and all other filling services all over INDIA.
    Regards
    DP Agrawal(CFP)
    8820427970 / 9437254731
    Email: itr.advisory@yahoo.com
    – See more at: https://taxguru.in/income-tax/most-popular-exempt-allowances-for-salaried-employees.html#comment-1660429

  5. B R TANEJA, ITP says:

    A VERY USEFUL AND INFORMATIVE INFORMATION PL KEEP IT UP;
    PL GIVE USEFUL INFORMATION OF SEC. 40a(ia) REG DISALLOWANCE OF INTT PAID TO NBFC AND CASE LAW IF ANY ON THE ISSUE WHEN THE RECIPIENT PARTY HAS DISCLOSED THE INTEREST RECEIPTS IN ITS RETURN AND CA ISSUED A CERTIFICATE IN THIS REGARD

    WITH BEST WISHES

  6. B R TANEJA, ITP says:

    A VERY USEFUL AND INFORMATIVE INFORMATION FOR ALL PL KEEP IT UP

  7. SRIDHAR RAJU says:

    VERY GOOD INFORMATION GIVEN AT ONE STROKE.
    Thank you very much

  8. Lokesh says:

    Anyone need help regarding Taxation and any service, Contact me at 98,998,98,638 or mail us at garglokesh92@yahoo.in at very low cost.

    Lokesh Garg !

  9. DINESH BANSAL ADVOCATE says:

    Very nice information

  10. Vijay Mathur says:

    5th point is applicable STARTING from FY 2014-15. My company has already given benefits of it. In AY 2015-16 you can claim it.

  11. Dilip Gupta says:

    important update…Information is very useful.
    Thanks.

  12. CA KISHAN AGARWAL says:

    very good Pratik. keep it up………

  13. Nitika says:

    How to claim deduction in case of interest expence in case of self acquired house property, i’m talking about claiming deduction of Rs.200000.

    can this go in negative as i’m a bank employee took loan 3 year ago and this year paid interest around 131000. i don’t have other house.

  14. Ajay sharma says:

    Very valuable information
    Plz keep it up

  15. PRADIP G THAKKAR says:

    VERY GOOD INFORMATION GIVEN AT ONE STROKE.
    CA PRADIP G THAKKAR.

  16. PRADIP G THAKKAR says:

    Very good information given at one stroke.
    Thanks

  17. Lk says:

    nice info please also publish different forms

  18. I.K. ARORA says:

    Information is very useful

    Thanks

  19. Hemant Vashishtha says:

    Very good & informative article….. keep it up….

  20. PARESH BHARATI says:

    Good info..keep it up..

  21. Rameshbhai Patel says:

    I preparation eTDS Return Q4 with challans,deductee detais and salary details for F.Y. 2014-15 and A.Y. 2015-16. I have generate this return but fike validation with error file in salary detail in field name of total amount and error code and description of error is as T-FV 6039 Deduction claimed under section 80CCE should not be more than Rs. 1,00,000. Please resovled my question for u/s 80c,80ccc,80ccd and 80cce. we enter detailed in deduction under chapter vi-A, all deductee’s deduction total over Rs.150000. but in TDSMAN TDS software are calculate amount in 80CCE and file validation error as above.

  22. Sughosh Rokde says:

    Very nice & Informative Article.

  23. ashish says:

    important update…

  24. ashish says:

    nice update…

  25. CA Omprakash Patel says:

    Good info..keep it up..

  26. Debashis Saha says:

    THIS YEAR referred by Mr. Anand, above should be Assessment Year 2015-16. As regard to the Holding Period of Assets it should be effective from Assessment Year 2015-16 . To neutralize the effect of such amendment which took affect from 11th July,2014 (The Indian Finance Minister (FM), Arun Jaitley, presented the Union Budget 2014-15 on 10 July 2014) the second proviso was inserted in the definition of “Short Term Capital Gain” under section 2(42A)

  27. RASHMI JAIN says:

    PRATEEK UR ARTICLE IS VERY INFORMATIVE

  28. M C Rawat says:

    A very goof piece of information. Thanks.

  29. Sudhir says:

    Foreign Assest and Income reporting, if you are a NRI resident here?

  30. Venu says:

    Very Good Information.

  31. Rahul Baheti says:

    Nice & Informative Article..

  32. CA Narendra Soni says:

    Good exhaustive article.

  33. Puttaraju says:

    15 Important things to know while filing Income tax returns this year for individuals.

    My Q is “THIS YEAR” refers to AY 2015-16 or FY 2015-16 ? Because the 5th point with regard to holding period of assets is effective from 01/04/2015, so its not clear.

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