Salaried peoples with taxable income of less than Rs. 5 lakh will not have to file income-tax returns in the current assessment year (2011-12). The finance ministry notified the scheme on recently, spelling out the conditions for the exemption announced in the Budget 2011-12.
In his budget speech for 2011-12, Finance Minister Pranab Mukherjee had proposed to exempt salaried employees from filing tax returns in order to reduce the compliance burden on small taxpayers.
Individuals with total taxable salary income of less than Rs 5 lakh in FY 2010-11, after allowing all deductions, will be exempt from filing tax returns this (2011) year.
Conditions:
Following conditions are to be satisfied to claim exemption from return Filing .
Who can Claim Exemption?
* Individual must have reported his pan to his employer.
* No refund is Due to assesse .
* Exemption is available for from Assessment year 2011-12
* This exemption is available to Individual assessee only. He/She may be resident or not.
* Income must be earned from Salary and/or Saving Bank Interest up to Rs 10000/- .Pension is also covered under salary head.
* Total Income (After deductions 80C to 80U) of Individual must be up to 5 Lakh Rupees only.
* He/She has Earned salary only from one employer during the year.
* He/She has reported his income from saving Bank Interest to his employer for TDS deduction purposes.
* Employer has deducted the tax on his Full income,salary plus interest {if any},and tds has been deposited in Govt account by the employer.
Individual has received Form 16 From the employer ,which mention PAN, Income detail and Tax deducted and deposit detail.
If all the above conditions are satisfied then you can are exempted to file Income tax return for Financial year 2010-11.
Who can not claim exemption ?
* If refund is due to Him?Her
* Saving Bank interest is more than 10000 rupees.
* If His Total taxable income after deduction u/s 80C to 80U is more than 5 (five) Lakh rupees.
* If he/she has received salary from two employers during the year.
* If he has not submitted his PAN to his employer.
* If Form 16 has not been issued to Him/her by His employer.
* If his total income includes any one of following Incomes
Income from House property Including minus Income from interest on House Loan.
Income from Business/profession,
Income from capital gain
* Any other Income under "Income from other source"
* If He has not offered his/her Saving Bank interest income to his employer for tax deduction.
* If he has discharged His/her tax liability through advance tax or self assessment challan.
* The scheme shall also not be applicable in cases wherein notices are issued for filing the income-tax return.
Most of Salaried persons may not avail this exemption. Why? This is good for salaried persons. But, Most of them is not able to fulfill conditions given in the Notification. A very few salaried employees declared saving Bank interest to their employer . Even employer are reluctant to consider other income of assessee for TDS deduction.
GOVT Notification .
AN INDIVIDUAL HAVING INCOME NOT EXCEEDING RS. 5 LACS FROM SALARIES/OTHER SOURCES FOR A.Y. 2011-12 IS NOT REQUIRED TO FILE RETURN U/S 139(1)
NOTIFICATION NO. 36/2011 [F. NO. 142/09/2011 (TPL)], DATED 23-6-2011
In exercise of the powers conferred by sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2011-12, namely :—
Class of Persons
1. An Individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,—
(A) "Salaries";
(B) "Income from other sources", by way of interest from a savings account in a bank, not exceeding ten thousand rupees.
Conditions
2. The individual referred to in para 1,—
(i) has reported to his employer his Permanent Account Number (PAN);
(ii) has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon;
(iii) has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;
(iv) has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;
(v) has no claim of refund of taxes due to him for the income of the assessment year; and
(vi) has received salary from only one employer for the assessment year.
3. The exemption from the requirement of furnishing a return of income-tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.
4. This notification shall come into force from the date of its publication in the Official Gazette.
* Persons receiving salary from more than one employer. The entire income must accrue from a single employer. That is, if an individual has a taxable salary income of less than Rs 5 lakh but had switched jobs in the middle of 2010-11, then he would have to file tax returns, clubbing income from all the employers.
* Having income from sources other than salary and interest income from a savings bank account.
* Having refund claims shall not be covered under the scheme.
Important Note: Obtain certificate of tax deduction in Form No 16 from employer. Reason, Form No 16 is equal to Income tax return form.
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