No tax return for income up to Rs 5 Lakh :
New Delhi: As many as 85 lakh salaried tax payers whose taxable annual income,including salary and interest income,is up to Rs 5 lakh,are not required to file income-tax return from now on wards. A notification on this will be issued shortly,a Central Board of Direct Taxes official said.
However,he said this would not cover income from other sources like house property,capital gains and gains from profession and business.
The scheme will be applicable from assessment year 2011-12 onwards.This means that the salaried persons eligible under the scheme will not have to file returns for the financial year 2010-11 (for the 2011-12 assessment year).
Under the scheme,those salaried persons who want to claim tax refund,would have 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 IT 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 income-tax return.At present,it is obligatory for all salaried persons to file income tax return under the Income Tax Act,1961.