Filing of Income Tax Return for AY 2015-16 and Advantages & Disadvanteges of ITR AY 2015-16

Income Tax
Return is not mandatory whose income below Rs. 250000/-.  Apart from this
if you have pan card must file income Tax
Return before due date, even if your Taxable Income is less
than Rs. 250000/-.  

Heads of Income:
Salaries &
 Salary and allowance (House Rental Allowance,
Hardship allowance) and benefits (such as Rent free accommodation, car, stock
options etc.) provided by employer either free or at a concessional rate.
Income from
House Property:
 Rental income from House Property.
Profits &
Gains of business or profession:
Business Income
Capital Gains: Profit/loss on sale of shares,
mutual funds, Property etc.
Income from
other sources:
 Interest on fixed deposit, dividend, Gifts etc. 
  • Professional
    Tax levied State govt. from salary is deducted,
  • Transport allowance is deducted from salary up-to
    Rs. 800/- per month,
  • Children education allowance is deducted from
    salary up-to Rs.100/- per month per child,
  • Insurance Premium u/s 80C up to 1 lac,
  • Payment of medical insurance premium. Deduction
    is available up-to Rs.15,000/ for self/ family and also up to Rs. 15,000/-
    for insurance
    in respect of parent/ parents of the assessee,
  • Donation to certain funds, charitable
    institutions u/s 80G,
  • Deduction of up to Rs.10,000/- for interest on savings bank account or post office savings account,
  • Rebate of Rs. 2000/- is available if Total income
    is less than Rs. 5 lacs
Deductions for
Housing Loan:
For Principal
  • Deduction of Rs. 1 lac u/s 80C is allowed on
    Payment Basis if construction of house property is completed.
For Interest on
  • If Property is constructed/bought within 3 years
    then For self occupied Property : up-to Rs. 2 lacs, For Let out Property:
    No limit,
  • If Property not constructed/bought within 3 years
    then Deduction up-to Rs. 30,000/- only.
  • Pre-construction interest is allowed after
    completion in 5 equal installments without any limit.
Clubbing of
Concept of
joint filing of tax return does not exist. There exists clubbing provisions for
income of minor children and spouse in certain circumstances.
Salary earned
by spouse:
  Spouse salary from a concern where individual has a substantial
interest ( > 20% stake)- Salary due to technical/professional expertise

Transfer of
asset to spouse:
 Transfer of asset to spouse for inadequate consideration or otherwise
than in connection with an agreement to live apart.

All Income of
minor child:
 Exclusion available for manual work and Activities involving application of skills
Modes of tax
Withholding Tax
  • Tax to be withheld from the remuneration paid by
    the employer even after departure if income exceeds maximum threshold limit not chargeable to tax .
  • Annual certificate to be issued by the employer
    for salary and benefits.
  • Withholding at prescribed rates on personal
Advance Tax
  • Advance tax payable on
  • other
    income, where it is liable to tax in India. (Tax Limit
    INR 10,000)
  • Advance tax payable on personal income in three
  • 30 per cent by 15 September
  • 60 per cent by 15 December
  • 100 per cent by 15 March
Income Tax slab
for individuals
Advantages and
Disadvantages of filing Return.
  • Return filing is mandatory for getting any loan,
  • Return filing is mandatory for getting VISA,
  • For getting Credit Card,
  • Standard proof of income,
  • For quick registration of immovable properties,
of filing Return. 
If Return is not filed
  • Penalty of Rs. 5000/- will be levied & also
    interest u/s 234A is required to be paid,
  • Losses can not be carried forward to next year,
  • No Revise Return can be filed,
  • Interest up-to 1% per month will be levied.
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