Income Tax Return Changes 2015: FY 2014-15 & AY 2015-16
This article explains the important changes introduced in Income Tax Return forms and return-filing procedures for Financial Year 2014-15 (Assessment Year 2015-16), including reporting of bank accounts, Aadhaar and passport information, electronic filing for refund claims, electronic verification and the introduction of ITR-2A.
Multiple Bank Account Details Were Required
The Income Tax Return forms for Assessment Year 2015-16 required taxpayers to report details of the bank accounts operated by them. The information included the bank name, account number and IFSC code. The requirement applied whether the account was a savings account or a current account. Dormant accounts were not required to be reported.
E-Filing Was Mandatory for Refund Claims
E-filing of the Income Tax Return was made mandatory for taxpayers claiming an income tax refund. The change was intended to facilitate quicker processing of refunds. The return-filing system was also moving toward electronic payment of refunds instead of issuing refund cheques.
Passport Number Was Optional Information
Passport number was treated as optional information in the return. The disclosure formed part of the additional information sought in the return-filing process relating to taxpayers' financial and travel details.
ITR-V Was Not Required Where the Return Was Electronically Verified
A system of electronic verification was introduced for income-tax returns. A taxpayer could verify the return electronically through the prescribed verification mechanism linked to Aadhaar/mobile verification or by using a digital signature.
Where the return was successfully verified electronically or filed with a digital signature, the taxpayer was not required to send the signed ITR-V acknowledgement to CPC, Bengaluru. Where electronic verification was not completed, the prevailing ITR-V procedure continued to apply.
Aadhaar details were relevant to the electronic verification process where Aadhaar-based verification was used.
New ITR-2A Form Was Introduced
ITR-2A was introduced for individuals and Hindu Undivided Families (HUFs) who were not eligible to use ITR-1 but whose income profile did not require the more detailed ITR-2 form.
ITR-2A could be used by eligible individuals or HUFs having income from:
- Salary;
- House property, including income from more than one property;
- Other sources, including lottery winnings or horse-racing income; and
- Income of a minor child or spouse required to be clubbed with the taxpayer's income.
ITR-2A could not be used where the taxpayer had:
- Income from capital gains;
- Income from business or profession;
- A claim for relief under Sections 90, 90A or 91;
- Foreign assets or financial interests, or signing authority in an account located outside India, in the circumstances specified for a resident taxpayer; or
- Income from a source outside India in the circumstances specified in the form.
ITR-1 and Exempt Income Above ₹5,000
For AY 2015-16, the restrictions relating to exempt income in ITR-1 were relaxed compared with the preceding return-filing position discussed in the article. Taxpayers could use the applicable simpler return form for eligible exempt income such as PPF interest and House Rent Allowance, while agricultural income exceeding ₹5,000 continued to affect eligibility for the simpler form.
Automated Validations During E-Filing
The Income Tax Department introduced additional electronic validations at the time of filing returns. These checks were intended to identify inconsistencies or significant errors before submission.
Examples included validations relating to claims such as deductions under Section 80G and matching the taxpayer's name in the return with the name available in the PAN database. Where relevant details did not match or the return contained significant errors, the filing system could generate an alert or prevent submission until the issue was corrected.