Points to be in mind while Filing Income Tax Return
1. Due date of Filing of Income Tax Return has been extended till 31 August 2015 for the Assessment Year 2015-2016.
2. Maximum amount of deduction available under Chapter VI A has been extended from Rs.1,00,000 to Rs.1,50,000 includes payment for LIP,PF, PPF, NSC,New Pension Scheme etc.)
3. If filing Income Tax Return manually and Total income (Gross Total Income (less) Deduction does not exceed Rs.5, 00,000 then don’t forget to claim relief under section 87A).
4. Deduction available u/s 24 in respect of Interest paid on Self Occupied house Property has been extended from Rs.1,50,000 to Rs.2, 00,000.
5.It is mandatory for to E File Income Tax Return if his Gross Total Income Exceeds Rs.5 Lac.
6. If clubbing the Income of your minor child u/s 64(1A) with your Income then do not forget to claim standard deduction of Rs.1,500 per child.
7.If a person fails to furnish his Income Tax Return by the time specified u/s 139(1) or by the end of relevant Assessment Year, Then the assessing officer may direct that person to pay sum of Rs.5, 000 by way of Penalty.
8. If you are e Filing your Income Tax Return without using Digital Signatures then send a duly signed copy of ITR V at “Income Tax Department – CPC, Post Box No. – 1 , Electronic City Post Office , Bangalore – 560100 , Karnataka “ by regular Indian Postal Service or Speed Post only “ within 120 days of e filing his Income Tax Return. Alternatively you can also verify your Return Electronically.
9.For the purpose of Claiming Deduction u/s 54EC to save Income Tax on Long Term Capital Gains, Investments In the bonds of RECI & NHAI shall be made within 6 months from the date of transfer limited to Rs.50,00,000 (say if Property is being sold on 01.03.2015 then the Investments shall be made upto 31.08.2015).
10. Verify TDS details in Form 26AS with Form16 or Salary receipt before filing your Income Tax Return.
11. If you are resident and ordinarily resident as per Section 6 of the Act then all income earned whether in India or Outside India Is Taxable in India.
12. If an Income Tax has been deducted outside India on Income earned there, then don’t forget to claim relief u/s 90 or 91 of Income Tax Act.
13. Donations made to Political Party or Electoral Trust is eligible for deduction u/s 80GGC.
14. If assessee is the owner of more than one vacant residential house then it is at the option of the assessee to consider any of those as self occupied and other as Let out Property.
15. Any Expenditure incurred on Preventive health Checkup of Himself / Spouse/Parents/Dependent Parents is allowed as deduction u/s 80D even if it is paid in cash.
16. Any cash donation made to registered Charitable Trust in cash is fully allowed only if the amount does not exceed Rs. 10, 000.
17. Deduction u/s 80TTA in respect of Interest is allowed only if it is received form a Banking Co. or Post Office or Cooperative Bank on Savings Bank Account
18.Long Term Capital Gain arise on transfer of Equity Shares is exempted from the Payment of Income Tax only id the transaction is chargeable to Security Transaction Tax.
19. It is proposed AND BECOME MANDATORY that from Assessment Year 2015-2016 for every assessee to disclose Foreign Assets and Foreign Bank Account details in Income Tax Return.
20 Following Incomes are exempted from the Payment of Income Tax: agriculture income, dividend, gifts, Interest on PPF, Interest on notified bonds issued by local authorities, Interest received from Public Sector Company or notified bonds or debentures or Mutual fund.
21. Any advance money forfeited (Bayana jabt karna) by the assessee during 01.04.2014 to 31.03.2015 shall be chargeable to Income Tax under head Other Sources (Section 51).
22. If a person discovers any mistake or Omission or wrong statement therein, then he may furnish Revised Income Tax Return before the end of relevant assessment year or Completion of assessment whichever is earlier.
23. If you have forgotten to furnish your Income Tax return by due date then DON’T WORRY, you can still file belated Income Tax Return on the payment of Interest u/s 234A equals to 1% for every month or part of month.
24. If Total Income on an assessee exceeds Rs.1, 00, 00,000 (1 Crore) then get Marginal Relief Benefit.
25.Intimation received u/s 143(1) is a deemed notice of demand hence it should be paid off in full within 30 days of receipt otherwise it may cause assessee to pay interest 1.5% for every month or part of the month and Penalty upto Rs. 1,00,000.