No need for filing tax returns if your income is less than Rs 5 lakh

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No tax returns if your income is below 5 lakh
Salaried people with total income up to Rs 5 lakh, need not to file income tax returns (ITR) in the current assessment year i.e. 2011-12, as per the Central Board of Direct Taxes.

The last date for filing returns is July 31, according to a Central Board of Direct Taxes (CBDT).

(Also read: How to save 1.5 lakh through different tax-saving instruments)

The Central Board of Direct Taxes chairman, Prakash Chandra, announced the launch of the scheme on Thursday, though it was announced by Finance Minister Pranab Mukherjee in budget 2011-12 in February.

In his budget speech for 2011-12, Mukherjee had proposed to exempt salaried employees from filing tax returns in order to reduce the compliance burden on small taxpayers.

Those who have earned less than Rs 10,000 interest from savings accounts will also not have to file returns.

This will be applicable for the people who have a single income source, thus those who have received salaries from more than one employer in a financial year by changing jobs does not come under this bracket.

People having income from sources other than salary or having refund claims will not be covered under the scheme i.e. those with income from other sources such as fixed deposits and mutual funds will have to file returns.

To get this benefit, the employee need to declare his permanent account number to his employer and obtain certificate of tax deduction in Form No 16.

The scheme will benefit about 85 lakh taxpayers, or about 20% of the total income tax payers in the country.

There is lack of clarity as certain experts state that new ITR rule is applicable on taxable income rather than total income.

OneIndia Money

Read more about: tax, income tax, budget, itr
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