Fwd: No need to file tax return for income up to Rs 5 lakh
lokku Prashanth shekar
From: N.Ranganath Yugandhar <nryug...@gmail.com>
Date: Sat, Jun 25, 2011 at 12:50 PM
Subject: No need to file tax return for income up to Rs 5 lakh
To:
Source:http://www.business-standard.com/india/news/no-need-to-file-tax-return-for-incometo-rs-5-lakh/137718/on
As many as 85 lakh salaried tax payers with an annual income of up to Rs 5 lakh will not have to file income-tax (I-T) return from now onwards, a Finance Ministry official said.
"No income-tax returns would be required for salaried persons earning up to Rs 5 lakh per annum. We would notify this in first week of June," outgoing Chairman of Central Board of Direct Taxes Sudhir Chandra told reporters here.
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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).
Under the scheme, those salaried persons who want to claim tax refund, would have to income tax file return.
As per the Memorandum to the Finance Bill 2011, the government will be issuing a notification exempting 'classes of persons' from the requirement of furnishing income tax returns.
Under the scheme, the salaried person wants exemption from filing I-T return, has to disclose about the incomes like dividend and interest to his employer for tax deduction.
In the scenario, the Form 16 issued to salaried employees will be treated as I-T return. At present, it is obligatory for all salaried persons to file income tax return under the Income Tax Act, 1961.
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.
Thanks&Regards
N.Ranganath yugandhar Gupta
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