Key Income Tax Changes That Every Taxpayers Should Understand

Posted by DrivenDiva Styles
1
Mar 3, 2016
128 Views
One should be aware of following provisions at the time of filing his/her Income Tax Return , since it is very important to file return correctly otherwise it might be declared as defective or Invalid and cause the assessee to pay penalties & interests.

1.The maximum amount of deduction available under Chapter VI A has been extended from
  Rs.1,00,000 to Rs.1,50,000 (Investments,LIP,PF,PPF,NSC,New Pension Scheme etc.) for
  assessment year 2015-16.

Taxpayer can now invest their money in Sukanya Samridhi Account which is not only a good Investment instrument but also help to save your Income Tax at is is eligible to claim deduction under section 80C

2.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 from assessment year 2015-16

3.If you are clubbing the Income of your minor child u/s 64(1A) with your Income then do not
  forgot to claim standard deduction of Rs.1, 500 per child.

4.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.

5.Donations made by Individuals to Political Party or Electoral Trust is eligible for 100% 
  deduction u/s 80GGC.

6.If assessee is the owner of more than one 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.

7.Any Expenditure incurred on Preventive health Checkup of Himself /
  Spouse/Parents/Dependent Parents is allowed as deduction u/s 80D upto Rs.5, 000 even   
  if it is paid in cash.

8.Any cash donation made to registered Charitable Trust in cash is fully allowed only if the
  amount does not exceed Rs.10, 000.

9.Deduction u/s 80TTA in respect of Interest is allowed upto Rs.10,000 only if it is received
  from a Banking Co. or Post Office or Cooperative Bank on Savings Bank Account.

10.Long Term Capital Gain arising on transfer of Equity Shares or Equity oriented funds is exempted from the Payment of Income Tax only id the transaction is chargeable to Security  Transaction Tax.

11.Deduction under section 80D is enhanced from Rs.15,000 to Rs.25,000 from assessment year 2016-17.
Now the Maximum amount of deduction that an Individual can claim under section 80D in respect of Medical Insurance paid for himself or Spouse or Dependent children is Rs.25,000 And Rs.30,000 in respect of Medical Insurance Premium paid for parents whether dependent or not.

12.Taxpayer can E verify the return through Electronic Verification Code or One Time Password , by this they are not required to send a copy of ITR V to Income Tax Department CPC Banglore

13. Taxpayers are mandatorily required to quote their Aadhar Number (UID) and Passport number as well if held

14.Income Tax Department has introduced a new schedule FA in Income Tax Return form in which assessee is required to give details of all Bank Accounts, Assets held by him in any Foreign Country.  For more info visit: https://taxzippy.com
Comments
avatar
Please sign in to add comment.