Salaried, with income below Rs 5 lakh? Skip filing returns
Salary earners having an income of less than Rs 5 lakh a year will not need to file tax returns from this year, a finance ministry official said. HT reports.
Salary earners having an income of less than Rs 5 lakh a year will not need to file tax returns from this year, a finance ministry official said.
“Salaried people, may be up to Rs 5 lakh...they need not file the (income tax) return,” CBDT chairman Sudhir Chandra said at the customary post-budget press conference. The exemption from filing tax returns come into effect from the assessment year 2011-12.
In case such a salary earner has income from other sources like dividend, 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 government, he said, is working out a scheme and will notify it “very soon”. The Form 16 issued (by the employer) to salaried employees will be treated as Income Tax Returns, he added.
According to the Memorandum to the Finance Bill 2011, the government will soon issue a notification that will exempt certain ‘classes of persons’ from the requirement of furnishing income tax returns.
The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, it said.
Every person whose income exceeds the taxable limit is required to file returns, regardless of whether his tax has been paid for him by his employer as TDS, according to income tax rules applicable at present.