Taxpayers with salaries below Rs5 lakh need not file income tax returns
24 Jun 2011
Salaried individuals with taxable income of less than Rs5 lakh have been exempted from having to file income-tax returns in the current assessment year.
The scheme was notified by the finance ministry yesterday, spelling out the conditions for the exemption announced in the budget for 2011-12.
Individuals with total taxable salary income of less than Rs5 lakh in FY 2010-11, after allowance of all deductions, would be exempt from filing tax returns this year.
However, this would apply to income accrued from a single employers and individuals with below Rs5 lakh taxable income from multiple employers would have to file tax returns clubbing the income he received from all the employers.
The exemption would also be not be available to individuals who have interest income in excess of Rs10,000 in their savings deposits. Those with interest income of less than Rs10,000 would have to declare the income to their employer and have tax deducted on it to avail of the exemption.
The employee would need to declare his permanent account number to his employer and obtain certificate of tax deduction in Form No 16.
Individuals with income from sources other than salary or with refund claims would not be covered under the scheme.
In his budget speech for 2011-12, finance minister Pranab Mukherjee had proposed that the filing of tax returns be exempt for salaried employees so as to reduce compliance burden on small taxpayers.
According to the finance ministry, the scheme should also not be applicable in cases wherein notices are issued for filing the income-tax return under section 142(1) or section 148 or section 153A or section 153C of the Income Tax Act 1961.
