Income Tax Return 2013: Must Know Information..!!

The income tax is flawed for a number of reasons - it discourages economic growth and encourages a bloated government.
Mark Skousen

Exemption limit (Good News)

• There’s good news for all for this assessment year(2013-14), the exemption limit has been increased. 
• Individuals < 60 years (both men and women),the exemption limit is Rs. 2 Lakh.
• For SeniorCitizens >60 years, the exemption limit is Rs. 2.5 Lakh.
• And  for Super Senior Citizens (Individuals above the age of 80), the exemption limit is raised to Rs. 5 lakh

For Senior Citizen (More Good news)

• There’s some more good news for Senior Citizens because the eligible age for Senior Citizens has been reduced from 65 to 60 years for:
• Section 80D (Deductions on Medical Insurance),
• Section 80DDB (Deduction on Medical Treatment) and 197A

Changes in E-Filing this year onwards

• E-Filing is compulsory for people having total income (amount after claiming tax deductions like section 80 deductions.)  more than Rs. 5Lakhs. 

• IFSC code instead of MICR code have to be entered while specifying your account details.

• Getting refund via ECS (i.e. directly into your bank account),
•  Specify an 11-digit Bank Account Number.
• If you do not have an 11-digit bank account number, then you have to request your refund via cheque. 

• ITR-1 is needed in most cases.

• ITR-2 in case of exempt income exceeding Rs. 5,000. 
• Common examples of Exempt Income are PPF interest.
•  Dividend earned from shares etc.

• Section 80TTA: Declare your Bank Interest Income and then claim this deduction. 

• Section 80D (Preventive Healthcare Expenses)
• You can claim up to Rs. 5000 for preventive Healthcare Expenses. (The expenditure could have been in cash too)

•  ITR-3 and ITR-4 (Declaration of Assets and Liabilities for Business people):

• If your  Total Income Income from Business or Profession  exceeds Rs. 25 Lakhs, you have to provide the details of all your personal and business Assets &  Liabilities in Income Tax return itself. 

• Foreign Income and Assets declaration: Income earned from foreign countries has to be declared in the ITR. 

How to file ITR:

• Go to https://incometaxindiaefiling.gov.in/
• From download section download ITR form (see above for the correct form).