Cost Inflation Index for year 2015-16 notified

The Central Board of Direct Taxes (CBDT) has notified the Cost Inflation Index (CII) for use in Indexation for computing the Capital Gains during the year 2015-16. The Cost Inflation Index has been notified as


The relevant Notification is reproduced below :-


In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (42 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes published in the Gazette of India, Extraordinary, vide number S.O. 709(E), dated the 20th August, 1998, namely:—

2. In the said notification, in the Table, after serial number 34 and the entries relating thereto, the following serial number and entries shall be inserted, namely:—

Sl. No.          Financial Year                 Cost Inflation Index

(1)                         (2)                                     (3)

“35                   2014-15                              1081”


The Cost Inflation Index from the year 1981-82 to 2015-16 is provided in the below link :

Cost Inflation Index from 1981-82 to 2015-16



Due date for filing IT Returns extended till 31st Aug 2015

The Income-tax Department vide Order under Section 119 of the Income-tax act,1961 dtd 10th June 2015 (F.No.225/154/2015/ITA.II) has extended the due date for filing the return of income in respect of assessees whose accounts are not required to be audited (including assessees having only salaried income). As per the said order, the last date of filing the return of income in respect of these assessees has been extended from 31st July 2015 to 31st August 2015 in respect of the year 2014-15 (Assessment year 2015-16).

The relevant order of the Income-tax department is reproduced below :-

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Filing your Income-tax Returns ? – For your attention !!

The last date for filing the return of Income is just about a week away and it is time to get set with your complete documents to comply with your tax filing.  While you file your Income-tax returns, ensure that you have taken care of the following aspects , in order to avoid further complications :-

Savings Bank Interest

Do you know Interest credited to your Savings account is taxable? Ensure that you declare the Interest credited to your Savings account in your return of Income as Income from other sources. For the benefit of small assessees, the Income-tax Act has provided a relief by way of deduction under Section 80 TTA to the extent of Rs. 10000/-. Hence in effect, SB Interest less than Rs. 10000/- will be exempt from tax. Do not forget to declare your SB Interest and claim the eligible exemption.

Fixed Deposit Interest

Interest earned on Fixed Deposit (either with bank or other financial institutions) is also taxable as Income from other sources. Many people assume that providing Form 15G / 15H to the Bank/Company will suffice and fail to declare the relevant income in their returns. The Fixed Deposit Interest should be declared as Income irrespective of the fact whether your have given Form 15G/15H or not and ensure that you declare and pay taxes on the same. Beware of the fact that the Form 15G/15H provided by you is being sent to the Income tax department by the banks/financial institutions and the Income tax department is having sufficient mechanism to check if you have declared those income in your returns or not.

 Transactions in Shares,securities & mutual Fund units

If you have Purchased/Sold Shares, Securities, Mutual Fund units during the previous year make sure you have declared the same in your return of income irrespective of the fact that you have made Profit (or) Loss in those transactions. The Income-tax department is having details of all the high value transactions and the same needs to be declared and the relevant taxes shall be paid.

 Rental Income

From this year, declaration of PAN number of the Landlord is mandatory in case of salaried assessees paying Rent in excess of Rs. 100000/- per annum from claiming their HRA Exemption. So if you are a landlord getting rent in excess of Rs. 100000/- per annum from your tenant (salaried employee), ensure that you have declared the rental income in full while filing your returns.

 Interest on Income-tax refund

This is one of the common items missing attention of the tax payers while filing their Return of Income. If you have received any refund from the Income-tax department, kindly ensure that you have declared the Interest on Income-tax refund as Income from other sources. You can find this information from the Income-tax Refund/Assessment order (or) in the Form 26AS which is available in the e-filing website of the Income-tax Department.

 TDS on sale of Property

 This is a recent addition to the TDS kitty of the Income-tax Department. When you sell a property with sale consideration in excess of Rs. 50 Lakhs, your buyer would have deducted TDS from the sale consideration and deposited the same in your PAN number. You should declare the sale transaction in your return of Income and pay the necessary capital gains for the same as applicable and also claim the TDS made on the sale transaction.

 More than one Form 16

During the previous year, if you have changed job, ensure that you obtain Form 16 from both your present and past employers and declare both the details in your Return of Income and the TDS there on.

 Report your Exempt Income

If you have exempt Income such as PPF Interest, Dividends, Long Term Capital gain on sale of listed equity shares, etc., even though they are exempt from tax, the same needs to be reported in your return of income under the column “Exempt Income”.

 Submission of ITR-V

Please be aware that simply filing your Income-tax returns online alone is not enough. You should ensure that your sign and send the ITR-V after e filing your return of income , to the Income-tax Department within 120 days from the date of filing. You should send the signed ITR-V either by way of ordinary post (or) speed Post only. Other modes (Courier, Registered Post, etc…,)  will lead to rejection of your return filed.

 Check your Form 26AS before completion of your filing

Last but not the least, download the copy of your Form 26AS and check the entries in the same and ensure that they are matching with your details in the Return of Income, before filing. The Form 26AS will provide complete details relating to your PAN with regard to TDS and which should be reconciled with your declared Income & TDS. You can download the Form 26AS by logging in to your e-filing account of the Income-tax department (or) from the TDS website.

 Ensure the above points for a hassle free tax filing and assessment. Be proud for filing your returns, paying your taxes and being part of the development of our Nation.   Wishing you all a very happy filing experience…….

ITR-5 (A.Y.2014-15) e-filing utility for Partnership Firms notified

The Income-tax Department has notified the e-filing utility ITR-5 – Income-tax Return form in respect of Partnership Firms, Association of Persons (AOP) , Body of Individual (BOI) & Limited Liability Partnerships (LLP).

With this, the following Income-tax Return e-filing utilities are notified for the A.Y.2014-15 (Financial year 2013-14) :-

ITR-1 – For Individuals having Income from Salary & Interest

ITR-2 – For Individuals & HUF not having Income from Business/Profession

ITR-3-For Individuals/HUFs being partners in firms and not carrying out business or profession under any Proprietorship.

ITR-4-For Individuals/HUFs having income from a proprietory Business / Profession.

ITR-4S- For Individuals/HUFs having income from presumptive business

ITR-5- Income-tax Return form in respect of Partnership Firms, Association of Persons (AOP) , Body of Individual (BOI) & Limited Liability Partnerships (LLP).

Source :-



ITR 4 for A.Y.2014-15 – e-filing utility notified

The Income-tax Department has notified the ITR-4 e filing utility for A.Y.2014-15 (F.Y.2013-14). The utility notified by the Income-tax Department is a Java based utility. ITR-4 is for Individuals & HUFs having Income from a proprietory business or profession. This utility can be downloaded from

With this , totally 5 Income-tax efiling utilities have been notified till now. They are ITR-1, ITR-2,ITR-3,ITR-4S & ITR-4.

New ITR 1 (SAHAJ) & ITR 4S (SUGAM) for A.Y.2014-15 (F.Y.2013-14) Notified

The Income tax Department has notified new ITR Forms ITR-1 & ITR-4S for the A.Y.2014-15.

The details of the same are provided below :-

Form NoDescription
ITR -1 (SAHAJ)For Individuals having Income from Salary & Interest
ITR - 4S (SUGAM)For Individuals/HUF having income from presumptive Business


The forms/utility can be downloaded from the link available in



Year End Tax Tips

 The financial year is at its end and its time to check few things in your books of accounts to ensure that you are tax compliant and save some money on taxes. This article aims at giving you some tips that could save your money/ taxes.

Haven’t paid your Advance Tax ?

            If you are one among the many who have missed the Advance Tax payment schedules during Sep-March, don’t worry you can save some money you will be paying as Interest on non payment of taxes (Interest under Section 234B). If you pay your advance tax in full before 31st March 2014, you can save some money payable as Interest for non payment of Advance tax.

            Lets check this with an example. Your estimated tax liability for the year is 25000 and you have not paid any of the advance tax instalments, you can pay 90% of the estimated tax (ie.,) 22500/- by 31st of march 2014, you need not pay interest under section 234B. The comparison is shown below

                                                                        Situation 1                              Situation 2


Pay 22500 before                    Does not pay

31st March 2014                      any tax before

31st March


Total Tax(Incl. Cess @ 3%)                            25000                                      25000

Less :- Advance Tax                                       22500                                      nil

2500                                           25000

Add :- Interest u/s. 234 B

(Assuming you file your returns

on 31st July)                                                     Nil                                           1000


You Save Rs.1000/- in the above example if you pay your advance tax on or before 31st of March 2014. Even if you are not able to pay the advance tax in full, you can still pay the amount as convenient to you and save the interest payment under section 234B which will be 1% per month from April till date of filing the returns.

Haven’t submitted your Investment proofs to your employer ?

If you haven’t submitted your investment proofs to your employer (or) your employer has not considered the proofs in full , submitted by you and deducted tax at source, still you can get back the amount of TDS deduction from your salary. For this you need to have the proofs of tax saving investments ready at the time of investment and while filing your return of Income, you can claim the respective deductions from total income and claim the refund from Income-tax department, if any.

Still not made Tax saving Investments ? 

Making the full use of the available investment options will minimize your tax liability. Did you make use of the Investments eligible for deduction from total income, in full? The commonly used tax saving investment sections are Section 80 C & 80 D of the Income-tax Act.

If you are running out of time and still have some gap in the maximum investment to be made (Rs. 1 Lakh) , and if you are afraid/ not clear of the various investment options available to you, an easy, less time consuming investment is “Tax Saving Fixed Deposit” offered by banks. Tax saving deposits are offered by Banks and will take lesser time for making the investment and with minimum documentation. It will have a lock in period of 5 years and with nominal interest payments. Some banks offer  investment in these type of deposits through the netbanking facility also. If time is your constraint, this is the best type of investment you can choose.

Other than 80 C, another frequently used tax saving option is Mediclaim payments wherein you can pay health insurance premium for your family and claim the same as deduction from your total income. In case the policy is taken on a Senior citizen, you can claim additional 5000/- as deduction under this section.

Advance few payments to claim maximum benefit

If you have a house property income and your municipal tax falls due in the coming months, (say April), you can pay the same now itself and claim the same from your income as these payments are allowed on payment basis irrespective of the year it relates.

If you have a Premium due in the coming month (Say April), make the payment of the same before 31st march and you can claim the same from your total income as these payments are also allowed as deduction on payment basis.

Do you have any other income for which you have not paid the advance tax ?

If you have any other income (say Rental, Interest, etc.,) which is also a substantial amount and you have failed to pay your advance tax for the same, you can still save money that will be levied as interest for non payment of advance tax.

A simple solution is to declare the same to your employer as “Other income” and request him to deduct tax on the same during TDS deduction to be made for the month of March. As the tax on other income will be taken care by these TDS, you will save a lot of Interest (234 B & 234 C) payments.

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Last date for Advance Tax Payment (March 2014 Instalment) Extended

In view of the holidays , the Central Board of Direct Taxes has extended the last date for payment of Advance tax (March 2014) instalment in respect of the A.Y.2014-15 (F.Y.2013-14) for all types of assessees, Corporate & Non Corporate assessees.

The CBDT has issued an order dtd 14/03/2014 extending the last date from 15th March 2014 to 18th March 2014.

The relevant order is reproduced below :-

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Due date for filing returns extended…..

The Income-tax department has extended the due date for filing the Income-tax returns from 31st July 2013 to 05th of August 2013 in respect of Non-Corporate / Non-Audit case returns to be filed for the year 2012-13 (A.y.2013-14). This is done in view of the unprecedented surge in the number of e-returns filed and the difficulty being faced by the assessees in accessing the Income-tax website for filing the returns.

Source :-

The relevant order  is reproduced below

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ITR-6 e-filing excel utility notified

The Income-tax department has notified the new excel utility for e-filing Income-tax returns in respect of Corporate assessees other than companies claiming exemption u/s. 11. Click the link below to download the excel utility.