by Mr. Vineet Agarwal, KPMG
There are some changes in income - tax (IT) regulations on filing of returns. The due date for filing the tax return is July 31 and it will be a good
idea to know about these changes.
Tax Return Electronically..!
Until last year, taxpayers having total income above Rs. 10 lakh were compulsorily required to file their returns electronically. The new amendments have amended this limit to Rs 5 lakh. Hence, if your total income is above Rs. 5 lakh, you need to file your tax return electronically.
Below changes are also relevant and will come handy when you file your tax returns:
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| Vineet Agarwal, KPMG |
IFSC code:
It was mandatory to provide MICR code earlier. However, MICR code has been now been replaced with IFSC code. IFSC code is an 11 digit alphanumeric code mentioned on your cheque & is mandatory to be quoted.
Exempt income above Rs 5,000:
If you are in receipt of income such as dividend, mutual fund, agricultural income and the total of this is above Rs 5,000, ITR 2 has to be used. You can not use ITR 1.
Claiming benefits under section 90 and 91:
Taxpayers having overseas income & claiming relief will now have to mandatory e-file their tax returns.
ITR 1 can not be used if you are claiming relief under section 90 & 91 of the Income-tax Act (I T Act).
Reporting of assets and liabilities:
`Schedule AL' has been added in ITR 3 & ITR 4.
As per the new schedule, if taxpayers having partner ship or / business income above Rs. 25 lakh then details of assets & liabilities need to be disclosed.
Taxpayers earning above Rs. 5 lakh are now required to file their tax returns electronically.
This will reduce the paper work to a great extent & also help taxpayers being more organised.While electronic filing has been debated a lot, electronic filing has been proved successful.
Taxpayers earning income up to Rs. 5 lakh need not worry about these provisions, as they are anyways not required to file tax returns, subject to certain conditions.
The author Mr. Vineet Agarwal is director KPMG. The views expressed are personal
ABOUT VINEET AGARWAL
Mr. Vineet Agarwal is a Director at KPMG India. He has done his Chartered Accountant, Cost & Management Accountant& Company Secretary.
Mr. Vineet has over 15 years of experience in advising clients on personal taxation. He has earlier worked with Arthur Andersen, Ernst & Young and Associated Cement Companies. Mr. Vineet has worked extensively in the area of global mobility and employee taxation, for inbound and outbound employees. He has a great deal of experience which include issues relating to exchange control, immigration rules, interpretation of double tax avoidance agreements, equity incentives (stock options etc.!), social security & retiral plans.
Mr. Vineet has also worked with large Indian corporates on tax effective compensation structuring and payroll outsourcing. Vineet regularly contributes to the economic times, financial express and financial chronicle and also features on business channels.
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