People earning upto Rs 5 lakh exempted from filing Income tax Return
No income-tax returns would be required for salaried persons earning up to Rs 5 lakh per annum. Notification would be issued in first week of June 2011.
The scheme would be applicable from assessment year 2011-12 onwards. This means that the salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year).
However, such tax payers would have to file return if they want to claim refunds.
In case such a salary earner has income from other sources like dividend, interest etc and does not want to file returns, he would have to disclose such income to his employer for tax deduction.
In the scenario, the Form 16 issued to salaried employees will be treated as Income Tax Return. The idea behind the move is that in cases where there are no other sources of income, filing of a return is a duplication of existing information.
No income-tax returns would be required for salaried persons earning up to Rs 5 lakh per annum. Notification would be issued in first week of June 2011.
The scheme would be applicable from assessment year 2011-12 onwards. This means that the salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year).
However, such tax payers would have to file return if they want to claim refunds.
In case such a salary earner has income from other sources like dividend, interest etc and does not want to file returns, he would have to disclose such income to his employer for tax deduction.
In the scenario, the Form 16 issued to salaried employees will be treated as Income Tax Return. The idea behind the move is that in cases where there are no other sources of income, filing of a return is a duplication of existing information.