A.Y. 2015-16:- A welcoming year from Income tax point of view

"Today, it takes more brains and efforts to make out the income-tax form than it does to make the income”. Maybe, this is the reason why people start boggling their heads when they realise that return filing season is approaching. Well, this year it seems that the income tax department is trying to make the tax-payers happy and it is taking sincere steps to do so. This article will reveal the welcoming steps taken by the department to reduce the hardship of the taxpayers.

1. Details in ITR forms- IT department has proposed various amendments in existing ITR forms which require comparatively lesser but appropriate details to be filled in. For example- Uptill Financial year 2013-14, details of foreign trips/ expenditures were asked but from current Financial Year 2014-15, such details are not required.

Uptill last year, basic details of any one bank account such as Bank name, Account Number, Account type (saving/ current), IFSC Code were asked. From this Financial year, details of all operational current and savings accounts are required to be given.

2. Extension of Due date for filing- Due to the proposed changes in ITR Forms, Income-tax department has extended the due date of filing of returns for individuals to 31st August. This extension can be enjoyed by Individuals who are outside the ambit of audit.

So, you have more time to incorporate the amendments and file your return correctly.

3. Mismatch of Form 26AS no more a ground for denial of credit for TDS- Till now, TDS reflected in Form 26AS was only allowed as credit. And any variance from such Form with actual TDS certificate does not warrant for credit. But, according to a recent High Court ruling, it is pronounced that where the taxpayer (deductee) approaches the Assessing officer with TDS certificate containing requisite details as evidence against any mismatch amount, the Assessing officer will only verify whether the deductor has made payment of tax to the Government or not. If such payment has been made, then the deductee shall not  be prevented from availing TDS credit.

It is the very duty of deductor to file TDS return within time after deduction of TDS. And hence as they say “One cannot be held liable for the mistake of the other”, eligible credit of mismatched TDS could not be denied on the ground that deductor has late filed or failed to file TDS return.

4. No more sending ITR-V by Post to CPC, Bangalore for Adhaar Card Holders- Earlier, you had to E-file your tax returns and had to send the signed acknowledgement copy within 120 days of filing to CPC, Bangalore by post. From this Financial Year, CBDT has issued a circular, that the taxpayers who filed their returns online, will no longer have to send the signed acknowledgement to Bangalore, if they have provided  Adhaar Number in their  ITR Forms.

As per the new system of electronic verification of returns, taxpayers who have provided their Adhaar number will get a “One Time Password” on their registered mobile number. Verification process will be completed once this password is required is provided on Income Tax login portal. It will be a simplified way of online verification. However, this is an optional process. If you don’t have Adhaar number, or if you don’t provide it in ITR Form, you can continue with the earlier system of sending the signed copy of ITR-V to Bangalore.

Well, it seems that, this year, Income-tax department tried to reduce the complexity of Forms. Also the above mentioned easy amendments indeed much beneficial for the taxpayers.Hence, it is always advisable to grab the benefits provided and file your return.

Happy filing!