Here are a few changes that investors should note when filing their tax returns for FY 2013-14. This was on account of the changes made by former Finance Minister P Chidambaram last year and will be applicable when filing tax returns for FY 2013-14 and assessment year 2014-15.
Tax credit of Rs 2000
For those earning a total income of less than Rs 5 lakhs there would be a tax credit of Rs 2000. This means that if your total tax liability is Rs 20,000, you would get a tax credit for Rs 2000, and need to pay Rs 18,000 only.
Rajiv Gandhi Equity Savings Scheme (RGESS)
Beginning this year if you have invested in RGESS you are entitled to claim tax benefit of Rs 50,000. This is over and above the tax benefits available under SEC80 C and SEC80D of the Income Tax Act.
An extra Rs 1 lakh available for home loans
If you have taken a home loan under Rs 25 lakh for your first home, you can claim an additional tax deduction of Rs 1 lakh on interest. However, the price of your home should not exceed Rs 40 lakhs.
Some changes in tax benefits for handicapped
On the life insurance policy of a disabled or those with a disease the limit on the premium payable vis-a vis the sum assured has been hiked to 15 per cent.