An exclusive IT form to claim deductions on LTA, HRA
The Income tax department announced the taxpayers that they have to submit their evidences or proofs to claim tax benefits on HRA, home loan interest and LTALTC. The Central Board of Direct taxes (CBDT) introduced a new tax return form 12BB, to claim the tax benefits on house rent allowance (HRA), leave travel allowance (LTA). The taxpayer should furnish his personal information like name, address and PAN number in the tax form to claim the deductions.If an individual wishes to claim tax benefits on his leave travel allowance or concession, he has to provide proofs regarding the travel to his employer. And if the individual’s annual rent is more than one lakh, he has to provide the lender’s name, address and personal account number (PAN) to claim deduction on HRA (house rent allowance). The same way, to gain tax benefits on home loan interest the taxpayer should furnish the lender’s personal details.
According to the Income tax Act under the Section 80C the Chapter VI-A relates to the allowable deductions, and in the other sections like the Section 80CCC, 80CCD, 80E, 80G and 80TTA. And under the Chapter VI-A, the taxpayer has to submit the proof of expenditure or investments.
The CBDT increased the time limit to fifteen days to file the tax deducted at source returns in the Form 24Q, 26Q and 27Q. And they extended the time limit to settle the TDS on transfer of immovable properties to thirty days from seven days. The amendments will take action from June 1st, 2016. With reference to the Income tax Act under the Section 80C, the taxpayer can claim deduction of one lakh fifty thousand from the overall tax amount if the taxpayer invested it in Sukanya Samridhi account, children’s tuition fee, public provident fund, life insurance scheme or capital repayment of home loan.
Tax deduction is applicable on home rent when the taxpayer or the spouse or the minor child does not own residential accommodation in the work place or when the house rent allowance is not received. Under Section 80EE the first time house owner gets a deduction if the property is purchased within fifty lakh and the loan is within thirty five lakh. And for individuals who have loan amount more than two lakh gets a deduction of fifty thousand from the home loan interest.