Wednesday, 4 May 2016

Amendments in Income Tax Rules


The income tax department came up with a new form making it compulsory for salaried taxpayers to provide proof of travel for claiming tax deductions on LTA/LTC.

The new form 12BB needs to be produced before the employers by the employees with evidence in relation to house rent allowance (HRA) if it exceeds more than Rs. 1 Lakh per assessment year.

The required details include name, address, and PAN of landlord where the total rent paid is over Rs. 1 Lakh.

Similarly in the case of tax deduction on LTA/LTC, employee needs to furnish travel expenditure to the employer.

CBDT extended the time limit for depositing TDS on transfer of immovable property from 7 days to 30 days.

Also due date for quarterly TDS returns in Form 24Q, 26Q and 27Q was extended by 15 days. These rules will be applicable from June 1, 2016.

An employee can claim tax deduction of Rs. 1.5 Lakh from the total taxable income if invested/spent in PPF, life insurance schemes, child tuition fee, home loan repayment among others.

Section 80E provides for deduction of interest on loan taken for pursuing higher education.

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