In India, filing income tax return (ITR) is mandatory for every person whose total gross income goes beyond the basic exemption limit. More and more Indians use online method to pay tax and file returns because of its convenience, user-friendliness and speed. In the financial year 2012-13, 2.15 crore income tax (I-T) returns out of 4 crore were filed online. The tax authorities have introduced some new rules for filing returns online. Let’s take a look at the new rules for e-filing.
The government has enhanced the basic exemption limits for assessment year 2012-13. The basic exemption limits for 2012-13: For men and women below the age of 60, the exemption limit is now Rs. 2 Lakh (from Rs. 1,80,000 for men and Rs. 1,90,000 for women). For Senior Citizens (men and women aged between 60 years and 80 years), the exemption limit is Rs. 2.5 Lakh. For Super Senior Citizens above the age of 80, the exemption limit is Rs. 5 lakh.
The eligible age for Senior Citizens has been brought down by 5 years (from 65 to 60 years) for Section 80D (Deductions on Medical Insurance) as well as Section 80DDB (Deduction on Medical Treatment) and 197A.
E-filing of I-T returns has been made compulsory for taxpayers whose income is above Rs 5 lakh after claiming tax deductions. Before this new rule, e-filing was compulsory for individuals having total income more than Rs. 10 lakh. Even though e-filing of returns is compulsory, the individuals need not to use the digital signature to confirm the tax return.
This new rule will decrease the cost and time needed for processing the returns. It will also accelerate the process of providing refunds to taxpayers.
Other New Rules For E-filing
- Now, you have to enter the bank’s IFSC number in place of MICR code while providing your account details.
- Just, specify your 11-digit Bank Account Number to get refund through ECS (directly into your bank account). You can even request the refund through cheque, if you don’t have 11-digit bank account number.
- If your exempt income (PPF interest, dividend from shares, etc.) is more than Rs. 5,000, then file the ITR-2
- Don’t forget to claim Section 80TTA: Every individual has to declare his/her Bank Interest Income and then, claim this deduction.
- Up to Rs. 5000 can be claimed for Section 80D (Preventive Healthcare Expenses). The expenditure can be also in cash.
- As per the New Schedule AL introduced in ITR3 and ITR4, people filling in ITR-3 and ITR-4 have to specify the details of your personal and business Assets & Liabilities in the ITR, if their Business or Profession Income is more than Rs. 25 Lakhs.
- Foreign Income declaration: Individuals are required to declare income earned from foreign countries along with foreign assets in Income Tax return.
- ITR-4S is not valid for persons claiming double-taxation relief, a signing authority in any overseas account or having assets overseas/exempted income above Rs. 5,000.