Are you looking to claim a rebate on Leave Travel Allowance (LTA) and House Rent Allowance (HRA)? You want to claim a deduction on the interest paid on your Home Loan? We have news for you. The Income Tax Department has announced changes to the format for HRA & LTA claims by introducing a standard Form 12BB for salaried tax payers. The new forms require more specific information, making it clearer for you to understand how to approach HRA and LTA deductions.
How to claim LTA benefits
You will need to submit proof of travel in Form 12BB to claim LTA benefits.
How do you claim deductions on Home Loan interest?
If you need to claim a tax deduction on your Home Loan, you will have to submit details such as name, address and the PAN number of the lender, in your declaration form under Chapter VI-A. You also need to provide proof of investment or expenditure.
Additional Reading: Your Guide to Income Tax Exemptions for the Financial Year 2016-17
Got a Rented Accommodation?
To claim HRA, you will need to submit information such as name, address and PAN number of your landlord, in case the aggregate rent paid is more than Rs. 1 lakh annually.
What is Chapter VI-A?
Chapter VI-A consists of the permissible deductions under Section 80C, Section 80CCC, Section 80CCD, including Sections 80E, 80G and 80TTA.
Extension of Time to Deposit Tax Deducted at Source on Transfer of Property
The Central Board of Direct Taxes (CBDT) has announced an extension of the time limit for depositing TDS on the transfer of property. The time limit has been extended from 7 days to 30 days.
The date for filing quarterly TDS returns in Form 24Q, 26Q and 27Q was extended by 15 days.
When Do These Amended Rules Come Into Effect
These amendments will come into effect from 1st June 2016.
Additional Reading: Spend Money on Your Kids and Get Tax Benefits