Financial Year 2011-12: No Income Tax Returns for Salaries up to Rs. 5 lakh

The CBDT (Central Board of Direct Taxes) has specified that individuals with total income of up to Rs. 5 lakh in a financial year and comprising only incomes under the head ‘salaries' and ‘income from other sources' would be exempt from filing their income-tax returns for assessment year 2012-13 (Financial Year 2011-12).

According to CBDT, ‘Income from other sources' should only be by way of interest from a savings account in a bank, not exceeding Rs. 10,000 .

To get exemption from filing of tax returns, an individual must report his PAN (Permanent Account Number) and the entire income from bank interest to his/her employer, pay the entire tax by way of TDS (Tax deduction at Source), and obtain a certificate of tax deduction in Form No. 16.

Persons receiving salary from more than one employer / having income from sources other than salary / interest income from a savings bank account / having refund claims will not be entitled to the exemption from filing tax returns.

The exemption from filing of tax returns would not be available where notices are issued to the individual for filing of income tax return under certain specified sections.

The CBDT had, in June last year (2011), extended a similar exemption from filing of tax returns for salaried taxpayers with total income of up to Rs. 5 lakh with regard to the financial year 2010-11.

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