- Under the heading Deduction under chapter VI A, New columns inserted for 80CCD (1), (1B) and (2). 80CCD(1B) was inserted vide Finance Act, 2015. Before such insertion, deduction was available u/s 80CCD(1) in respect of employees contribution and u/s 80CCD(2) in respect of employers contribution.The position that stood as of now after Finance act, 2015 has been explained below:
Section 80CCD(1) allows deduction with regard to the employees contribution towards NPS which shall not exceed 10% of the salary of the individual.
Section 80CCD(1B) allows deduction with regard to employees contribution towards NPS for which deduction has not been claimed under abovementioned subsection. The same should not exceed Rs. 50,000/-.
Section 80CCD(2) allows deduction with regard to the employers contribution towards NPS which shall not exceed 10% of the salary of the individual.
- Section 80EE under which deduction in respect of interest on loan taken for residential property was available is deleted as the said section was applicable only for A.Y. 2014-15 and 2015-16. Further, vide Finance Act, 2016 i.e. w.e.f. A.Y. 2017-18, deduction of Rs. 50,000 under the said section has again been introduced on fulfillment of certain conditions as provided in the section so the said column will again be introduced in the ITR of A.Y. 2017-18.
- A new schedule “TCS” has been inserted asking for the details of TCS collected from the assessee so that he can get credit of such TCS while paying his income tax. The said detail shall be filled up in accordance with the Form 27D (known as TCS Certificate) which is issued by the collectors. For e.g. If any individual purchases Jewellery of an amount exceeding Rs. 5 Lakhs in cash then the seller will collect TCS at the rate of 1% from the buyer and issue TCS certificate in Form 27D so that the individual can claim credit of the same.
- A new schedule “AL” has been inserted asking for the details of assets and liabilities of the individual at the end of the year (i.e. as on 31.03.2016). The said schedule is required to be filled by those assessees whose total income exceed Rs. 50 lakh. The said schedule requires the assessee to provide the cost of the movable, immovable assets and liabilities existing at the end of the year. This new reporting mechanism has been brought to check the tax evasion by high net worth individuals and entities.