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
3. Deduction limit for interest expense in respect of
self-occupied property raised from INR150,000 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.
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
(The author
is a CA in practice at Delhi and can be contacted at: E-mail:
capratikanand@gmail.com, Mobile: +91-9953199493)
