No need of ITR for salaried people with taxable income less than Rs.5 lacs
Salaried individuals with taxable income of less than Rs 5 lakh will not have to file income-tax returns in the current assessment year.
The finance ministry notified the scheme on Thursday, spelling out the conditions for the exemption announced in the Budget for 2011-12.
Individuals with total taxable salary income of less than Rs 5 lakh in FY 2010-11, after allowing all deductions, will be exempt from filing tax returns this year.
However, the entire income must accrue from a single employer. That is, if an individual has a taxable salary income of less than Rs 5 lakh but had switched jobs in the middle of 2010-11, then he would have to file tax returns, clubbing income from all the employers.
The exemption will also not be available to individuals who have interest income of more than 10,000 in their savings deposits. Those with interest income of less than 10,000 will need to declare such income to their employer and have tax deducted on it to avail of the exemption.
The employee will have to declare his permanent account number to his employer and obtain certificate of tax deduction in Form No 16.
Those individuals having income from sources other than salary or having refund claims will not be covered under the scheme.
In his budget speech for 2011-12, Finance Minister Pranab Mukherjee had proposed to exempt salaried employees from filing tax returns in order to reduce the compliance burden on small taxpayers.
The finance ministry also stated that the scheme shall 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.
Source: Economic Times
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