5 changes that affect tax filing this assessment year

5 changes that affect tax filing this assessment year

Tax filing is not going to same this tax season. Before you file your tax return, lets review what changed in tax returns this assessment year.

Changes in ITR Forms

Income tax department has prescribed revised forms starting this assessment year. Changes include

  • Simplified ITR-1 Form
  • ITR-2 form which now also covers income from partnership
  • ITR-3 form which now covers income from business and profession
  • ITR-4 form which now covers income eligible under presumptive tax scheme

Linking Aadhaar with PAN

From 1st July, it is compulsory to link your Aadhaar to your PAN before you file your tax return. Income tax department will reject any such returns where either Aadhaar is not mentioned or not linked to PAN. Taxpayer can mention Aadhaar enrollment number in case he/she has applied for Aadhaar. Taxpayer can link Aadhaar with PAN here

 

Disclosing cash deposits during demonetization

If you have deposited cash equal to or more than Rs 2,00,000 in aggregate, in any of your bank accounts between 9th November 2016 to 30th December 2016, the same has to be reported by taxpayer in his/her tax return.

 

Increased Rebate u/s 87A

Taxpayer are entitled to rebate of up to Rs 5,000 under section 87A of the income tax act, if taxable income does not exceed Rs 5,00,000. Earlier rebate was Rs 2,000.

 

First time home buyer benefit

First time home buyers can claim additional deduction of up to Rs 50,000 for the interested paid on loan taken for primary residence. This is in addition to the deduction of up to Rs 2,00,000 under section 24(b).


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