E-filing of Income Tax Return for F.Y. 2013-14 – Major Changes

Entry 82 of the Union List of Schedule VII of the Constitution of India empowers central government to levy tax on all income other than agricultural income.  The government of India imposes an income tax on taxable income of all persons including individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, body of individuals, local authority and any other artificial judicial person. If gross total income exceeds the exemption limit, Income Tax Return has to be filed. Changes in filing of such ITR for F.Y. 2013-14 are as follows:

Highlights on changes while filing ITR:

1. All taxpayers filing E-Returns will have to compulsorily update correct mobile number and E- Mail ID’s. Otherwise there will be login issues before uploading of return on income tax Departments Website.

2. Now onwards Income Tax Refund will be issued directly in the bank account of the taxpayer through ECS only, cheques are discontinued. Therefore at most care should be taken while mentioning Bank Account Number and IFSC Code in the income tax returns.

3. From this year while claiming TDS in Income Tax return facility has been given to carry forward the TDS of previous year and brought forward TDS to next year. Due to this reconciliation of TDS claimed 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 if annual income of the taxpayer is up to Rs. 5,00,000/- then Tax relief of maximum of Rs. 2,000/- is given. For claiming this relief separate space has been inserted in the return.

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 then 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 now separate details of LTA (Leave Travel Allowance) and HRA (House Rent Allowance) and other allowances separately. This will help Govt. to track proper claim of such deductions, recent HRA and LTA fallacious claimed by some MPs and Govt. taxpayers may have forced for such changes.

8. From this year the details of short and long term capital gain will have to be given in three parts viz.

a)      sale of plot / flat

b)      sale of STT paid shares and mutual funds

c)      sale of other assets.

Further in case of sale of land or building Stamp Duty Value 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.

9. 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. This will help in cross check of information with other legal departments by income tax dept or visa a versa.

10. If assessee 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.

11. As per newly inserted section 43 CA if, taxpayer have sold other than capital assets below stamp duty value (eg. builders / developers) then the difference between the two will be considered as deemed income of the assessee and tax will have to be paid on it. For this separate space has been inserted in the return.

12. 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.

13. From this year e-filing of wealth tax return is compulsory and in this return the details of all wealth whether taxable or not, will have to be given in depth.

Source Following Article from CA Umesh Sharma –  Karniti: Taxpayers please note recent changes in Income Tax Return

Categories: Income Tax

View Comments (8)

  • Dear Sir,
    Please don't copy paste the article, create your own article. This article has been written by CA Umesh Sharma and posted on Tax Guru on 29.06.2014. Further the same article is being published in Lokmat Newspaper also.

  • Sir
    E filing is to be done if the taxable incme after deducting 80cc exceeds 10 lakes or gross salary exceeds 10 lakhs

  • Mr.R.Appadorai:
    The fact is e-filing is compulsory for those whose gross is above 10 lakh. It doesnot mean others should not do e-filing. e-filing can be done by all including those whose taxable income is below the limit and tax payable is zero!

  • Sir,
    I m a central gov. employee. My income chargeable under head salary is 3776666 for fy 14-15 as per form 16.but from this amount, there is 33600 exempt income ( high altitude area allowance ) which is included in it.Should I fill ITR 1? If yes,then what amount should I fill in col 1.income from salary and col 26.income under salary in TDS1 of itr 1 .As per me in col1 -: 343066 (376666-33600) and in col26 -: 376666.sir please guide and help.Thanks

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