Stay abreast of changes in i-t return forms

The last date of filing income-tax returns for FY14 is round the corner (July 31, except for corporate and tax-audit cases). Therefore, it’s imperative that, as an assessee, you take note of some key changes in provisions.

Online tax refund only option

The revised ITR forms do not give any option to the tax assessee to claim refund through cheque. The revised form seeks details of the bank account in which the assessee wishes to receive the online credit of any refund.

Computation of income from capital gains

This year, ITR forms provide a detailed schedule for computing gains arising from transfer of capital assets in each of the prescribed category of assets for residents

and non-residents separately. Further,

information on the deduction claimed under Section 54/54B/54EC/54F/54GB/115F against any capital gains will also be required to be furnished in the ITR.

New rebate under section 87A

Don?t forget to claim deduction under the new Section 87A, which provides for a maximum tax relief of R2,000 for assessees with taxable income below R5 lakh.

Changes in P&L disclosure

The Profit & Loss schedule under the revised form has been made more detailed. Information like revenues, opening and closing stock, any payments of salary, commission, interest, royalty, professional or technical fees made to non-residents, details of other expenses, PAN of debtors against whom bad debt is claimed (in excess of R1 lakh), etc, is sought under the revised forms.

Details of exempt allowances

ITR forms 2 and 4 requires break of exempt allowances under Section 10 into travel concession/assistance received under Section 10(5) , tax paid by employer on non-monetary perquisite under Section 10(10CC), house rent allowance under Section 10(13A) and other allowances.

Unclaimed credit of TDS/TCS

The TDS/TCS schedules in tax returns now check for details to be filled in relation to unclaimed TDS/TCS of earlier years and those which do not pertain to the given tax year but are allowed to be carried forward.

Intra-head set-offs

The new forms require information on any intra-head adjustments relating to set-off of loss from one source of income against any income/profit from other source falling under the same head of income. Such intra-head set-off schedules have been provided for income under the head, gains from business/profession and capital gains.

Non-deductible expenses

For taxpayers having business/profession income, the new ITR forms mandate furnishing of information in respect of the certain new categories of non-deductible business expenses, namely contribution to pension schemes, amount of securities transaction tax, expenditure of capital nature and expenditure not wholly for the purpose of business or profession.

The above list is only indicative, and it is important for all assessees to go through the forms applicable to them carefully.

The writer is managing partner, Nangia & Co. With inputs from Nikhil Goenka