FY 2014-15 Income Tax Returns Filing : Tax Slabs & New ITR Forms

The Central Board of Direct Taxes (CBDT) has notified the Income Tax Returns (ITR) for Financial year 2014-15 (Assessment Year 2015-16).  The new ITR forms have been released by CBDT for FY 2014-15 Income Tax Returns Filing.

What is Assessment Year & Financial Year?

Financial year (FY) is the year in which you have earned the income. If you are filing a return this year, the financial year will be 2014-15. For example, if you have had an income between 1st April 2014 and 31 March 2015, then 2014-15 will be referred to as FY. Assessment Year (AY) is the year in which you file returns i.e., 2015-16. The last date to file returns for the financial year 2014-2015 is July 31st 2015.

Income Tax Slabs & Rates for FY 2014-15

The below table gives you clear idea about Income tax slabs / rates for all Tax payer categories. (For general category, Senior Citizens & Very Senior Citizens).

• The basic exemption limit for individuals (general category) is Rs 2.5 Lakh.
• The basic exemption limit for Senior citizens is Rs 3 Lakh.
• The basic exemption limit for very Senior Citizens is Rs 5 Lakh.

FY 2014-15 Income Tax Returns Filing – New ITR Forms for AY 2015-16

Below are the details about new ITR forms.

1) ITR-1 (Sahaj form) form for Assessment Year 2015-16

• ITR 1 Form can be downloaded from Income Tax Department website – Click here.
• Who can use the ITR-1 form? – This form can be used by an individual tax assessee whose total income for the FY 2014-2015 includes;
  • Income from Salary / Pension; OR
  • Income from one House Property (excluding cases where loss is brought forward from Previous years); OR
  • Income from other sources (excluding winning from lottery or horse racing).
• For detailed instructions on how to fill ITR-1 (Sahaj), click here (PDF file).

2) ITR-2 form for Assessment Year 2015-16

• ITR 2 Form can be downloaded from Income Tax Department website – Click here.
• Who can use the ITR-2 form? – This form can be used by an individual tax assessee whose total income for the FY 2014-2015 includes;
  (a) Income from Salary / Pension; or
  (b) Income from House Property; or
  (c) Income from Capital Gains; or
  (d) Income from Other Sources (including Winning from Lottery and Income from Race Horses). Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.
• For detailed instructions on how to fill ITR-2 & who can not use ITR-2, click here (PDF file).

3) ITR-2A form for Assessment Year 2015-16

• This form can be used by Individuals and HUFs who do not have Income from Business or Profession and Capital Gains and who do not hold foreign assets
• Download ITR 2A form
• For detailed instructions on how to fill ITR-2A,  click here (PDF file).

4) ITR-4S form (Sugam form) for Assessment Year 2015-16

• ITR 4S Form can be downloaded from Income Tax Department website – Click here.
• For detailed instructions on how to fill ITR-4s, click here (PDF file).

Download Income Tax Return Utility

Download ITR1, ITR2, ITR2A and ITR 4S excel & Java Utilities (Tax preparation software) for Assessment Year 2015-16 from Income Tax website. Click on the below image to download.

Important changes in new ITR Forms

A brief summary of Changes are as below.

• You can now furnish your Aadhar Id number in ITR forms.
• Introduction of Electronic Verification Code(EVC) as option of sending ITR-V to CPC Banaglore. This would use Aadhaar Number.
• ITR-1 (SAHAJ) & ITR-4S (Sugam) cannot be filed by an individual who has earned any income from source outside India.
• Tax Filers now will have to declare only the total number of savings and current bank accounts held by them at any time during the previous year (excluding dormant accounts).
• As regards bank account details in all these forms, only the IFS code, account number of all the current/savings account which are held at any time during the previous year will be required to be filled-up. The balance in accounts will not be required to be furnished. Details of dormant accounts which are not operational during the last three years are not required to be furnished.
• Tax filers can now provide two email-Ids.
• In the new ITR forms, an expat who is not an Indian citizen and is in India on business, employment or student visa would not mandatorily be required to report the foreign assets acquired by him during the previous years when he was non-resident and if no income was derived from such assets during the relevant previous year.
• In lieu of foreign travel details, it is now proposed that only Passport Number, if available, would be required to be given in Forms ITR-2 and ITR-2A. Details of foreign trips or expenditure thereon are not required to be furnished.

Below are some of the Important points to be kept in mind while filing your Income Tax Return this year;

• Basic Exemption limit has been increased by Rs 50,000 for general category individual tax payers.
• The tax exemption limit under Section 80c is raised to Rs 1.5 Lakh.
• The tax deduction limit for claiming  ‘Interest amount’ on home loan (for self-occupied property) raised from Rs 1.5 Lakh to Rs 2 Lakh (under section 24).
• To avail the Long Term Capital Gain Tax benefit in non equity mutual funds such as Debt funds, MIP (Monthly Income Plans), Gold Funds and Global Funds, the holding period has been increased from one year to three years.
• Long Term Capital Gains tax rate on sale of units of non-equity mutual funds is @ 20%.
• Investment only in one residential house in India is allowed for claiming exemption under Section 54 or Section 54F.
• No tax exemption is allowed for investment in Residential House located outside India.
• If your income is more than Rs 5 Lakh and you have income from abroad then it is mandatory to e-file (online) your tax returns.
• Even if your income is below Rs 5 Lakh, and if you have any Refund claim in your ITR then you have to file your taxes online (e-file).

The  Last Date of Filing Income Tax Return AY 2015-2016 has been extended from 31^st July to 31^st August 2015. But do not wait till the last week of August to file your AY 2015-16 Income Tax Return. Try to do it as early as possible. Do not forget to include your ‘income from other sources’ (if any, like interest earned from Fixed Deposits / RDs etc.,) in ITR.

Latest update : E-filing of ITR forms 3, 4 and 7 has been enabled now.