In compliance with the proposal in the Union Budget 2011, the Central Board of Direct Taxes will exempt the salaried employees with an annual income of Rs. 5,00,000 from submitting the Income Tax return. The details from 'TAXGURU' dated 03.03.2011 can be read as under:
"Salaried people with Rs 5 lakh income need not file returns
In a big relief from the cumbersome tax filing process for the salaried class, Finance Minister Pranab Mukherjee on Monday proposed to exempt them from filing tax returns unless they have other sources of income.
The government will be issuing a notification exempting 'classes of persons' from the requirement of furnishing income tax returns, said the Memorandum to the Finance Bill 2011. Salary earners having an income of less than Rs 5 lakh will not have to file tax returns from this year.
"Salaried people, maybe up to Rs 5 lakh...they need not file the (income tax) return," CBDT chairman Sudhir Chandra said.
The exemption from filing tax returns comes into effect from the assessment year 2011-12. The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, it added. In case such a salary earner has income from other sources like dividends, interest, etc., and does not want to file returns, he will have to disclose such income to his employer for tax deduction, Chandra said. The Form 16 issued to salaried employees will be treated as an Income Tax Return, he added."
Abbas.P.S
From India, Bangalore
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530"Salaried people with Rs 5 lakh income need not file returns
In a big relief from the cumbersome tax filing process for the salaried class, Finance Minister Pranab Mukherjee on Monday proposed to exempt them from filing tax returns unless they have other sources of income.
The government will be issuing a notification exempting 'classes of persons' from the requirement of furnishing income tax returns, said the Memorandum to the Finance Bill 2011. Salary earners having an income of less than Rs 5 lakh will not have to file tax returns from this year.
"Salaried people, maybe up to Rs 5 lakh...they need not file the (income tax) return," CBDT chairman Sudhir Chandra said.
The exemption from filing tax returns comes into effect from the assessment year 2011-12. The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, it added. In case such a salary earner has income from other sources like dividends, interest, etc., and does not want to file returns, he will have to disclose such income to his employer for tax deduction, Chandra said. The Form 16 issued to salaried employees will be treated as an Income Tax Return, he added."
Abbas.P.S
From India, Bangalore
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Income Tax Return preparation of Employees For FY 2010-2011.xls