Time for filing return has come. If you have received your Form 16, you might be preparing to file your return. When you file your return for Financial Year 2015-16 or Assessment Year 2016-17, you must keep in mind some important changes made in the ITR forms. Just like last year, Income Tax Department (ITD) has once again introduced some changes in the ITR forms for Assessment Year (AY) 2016-17. Here are 3 important changes in ITR Form-1, ITR Form-2 and ITR Form-2A which you should know before you file your tax return:
ITD has introduced new section for the super-rich in the ITR forms. There are approximately 1.5 lakh taxpayers who have income above Rs. 50 lakh. They are required to disclose assets like cash in hand, jewellery, bullion, yacht, vehicles, aircraft and immovable property like land and building in their ITR.
This move has been taken to ensure that abolition of Wealth Tax does not lead to escape of any income from the tax net.
New provision was introduced in Finance Act 2015 to provide additional deduction of Rs. 50,000 on contribution to NPS by the taxpayer. The new ITR forms have introduced a new row for claiming additional deduction of up to Rs. 50,000 for investment in NPS by taxpayer, which is over and above the traditional deduction limit of Rs. 1,50,000 under section 80C, 80CCC and 80CCD(1).
Bullion and jewellery sellers collects TCS at the time of sale from the buyer. Seller collects it at the rate of 1% of sale consideration from the buyer if the consideration is received in cash and exceeds Rs. 2 lakh in case of bullion and Rs. 5 lakh in case of jewellery. Earlier it was possible for taxpayers to claim credit by filing ITR-3, 4 or 4S, but now they can do so even by filing ITR-1, 2 and 2S.
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