Income Tax: Super-senior citizens exempt from filing e-returns even if earning over Rs 5 lakh

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Published: July 7, 2015 12:02:22 AM

As per recent changes in the procedure to file returns, relief has been provided to super senior citizen (80 years and above) from electronic filing.

I am an 82-year old retired employee with an annual income of R6,50,000. Is it mandatory to file returns electronically?
SK Sood

As per recent changes in the procedure to file returns, relief has been provided to super senior citizen (80 years and above) from electronic filing. Earlier, a person with total income of R5 lakh and above was required to file returns electronically. From AY 2015-16, exemption is provided to super senior citizens from electronic filing of returns even if their total income exceeds R5 lakh, provided returns are furnished in ITR1 or ITR2. This will help super senior citizens, some of whom may not be technologically equipped, to do e-filing.

I have heard there is no need to send ITR-V to CPC for processing within 120 days due to introduction of new system Electronic Verification Certification (EVC). Can you please explain what does EVC actually means?
Dibakar Sen

CBDT has introduced EVC system for verification of returns of income (ROI) as an option to send ITR-V to CPC, Bangalore. Aadhaar Card holders are required to furnish card number in ROI. New ITR forms will be link to Aadhaar card and verified by the Electronic Verification Certification (EVC). Thus, requirement to send physical ITR-V to CPC has been done away in case of Aadhaar card holders.

I am a salaried individual, with two residential house properties and also earn dividend income and fixed deposit interest. Which ITR form should I fill? Do I need to file the recently introduced ITR-2A?
Pradeep Kumar

At present, individuals/ HUFs with income from more than one house property or capital gains are required to file Form ITR-2. However, it was observed that majority of individuals/ HUFs who file ITR 2 do not have income from Capital gains. To provide a simplified version of ITR, a new form ITR 2-A was introduced, which can be filed by individual/ HUF who neither has capital gains nor income from business/ profession nor any foreign asset/foreign income nor have claimed relief under section 90/90A/91. Hence, you are required to file ITR-2A as you do not have income from capital gains.

I own two flats in Mumbai, using one for residential purpose and another one is leased on rent. Is it necessary to incur some expenditure on repair and maintenance to claim deduction of 30% while calculating income from house property.
Jagdish Raman

Section 24(a) of the Income Tax Act allows a standard deduction of 30% of the net annual value. This deduction is automatic and does not depend on the quantum of actual expenditure incurred. This deduction is allowed even if no expenditure is incurred by the taxpayer. However, this deduction is not available for self-occupied property as annual value in such cases is nil.

I earned long-term capital gains on sale of a plot of land. I want to buy a house in jointly with my wife (just for the purpose of security reasons) by utilising the sale proceeds. Will I get full capital gains exemption?
Gagandeep Singh

Section 54F which is relevant in your case mandates that the house be purchased by assessee, but it does not stipulate that house should be purchased in the name of assessee only. You said that your wife’s name would be entered in the purchase agreement just for ‘security purposes’, in such a case, you will be eligible for benefit on the entire amount spent on buying a new asset; subject to the condition that whole of purchase consideration would be paid by you.

I was transferred by my company to another city this year for which my company provided me an initial stay in a hotel for 20 days. I want to know that whether the hotel accommodation expenses paid by my company shall be treated as my perquisite in determining my salary income?
Adarsh Nanavati

Any accommodation provided by an employer to his employee in a hotel or guesthouse shall be treated to be a perquisite to the employee and shall be included in his salary income for the purpose of taxation. However, where such accommodation is provided on an employee’s transfer, such perquisite for the aggregate period of first 15 days shall not be taxed in the hands of the employee. Hence, in the above case, perquisite in the nature of hotel accommodation for a period exceeding 15 days, five days in your case, shall be included in the salary income of the assessee for the purpose of taxation.

** The writer is founder of RSM Astute Consulting Group

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