Wednesday, February 22, 2012

No Tax Returns for Salary upto Rs 5 Lakh

No filing of tax return for salary and interest income up to Rs 5 Lakh:Says Finance Ministry

"Today I am so happy after listening this great news because there are approx 85 lac salaried tax persons whose taxable income, including salary and interest income, is up to Rs 5 lac, are not required to file income-tax return from now onwards"

Present Criteria:
Income                                       Tax
Upto Rs 1.80 Lac                        :Nill
Rs 1.80-5 Lac                             :10% tax
Rs 5 - 8 Lac                                 :20%
Above Rs 8 lakh                         :30%

No incom tax for Salary upto Rs 5 Lakh"An individual whose total income for the relevant assessment year does not exceed Rs 5 lakh and consists of only income chargeable to income tax under...Salaries...[and] income from other sources, by way of interest from a saving account in a bank, not exceeding Rs 10,000 have been exempted from filing the returns from assessment year 2012-13," it said.

Exemption from filing will be permitted only if the person has received a certificate of tax deduction in Form 16 from his or her employer.
To claim income tax refund, however, such persons will have to file returns.

Prior to the notification, it was obligatory for all salaried persons to file income tax returns under the Income Tax Act, 1961.

It is felt that in cases where there are no other sources of income, filing of a return is a duplication of existing information, sources said.

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