No Income Tax return for Salary Person (Employee), whose Gorss Salary less than 500000 Lakhs.

Friends, as per union Budget of 2011-12 the Finance minister of India Pranab Mukharjee announced that if the Salary person whose gross Salary income less than 500000 Lakhs such employee will not have to file tax returns from this year i.e. assessment year 2012-13.

"Salaried people, may be up to Rs 5 lakh.(figure yet not confirmed ) they need not file the (income tax) return," CBDT chairman Sudhir Chandra told reporters at the customary post-Budget press conference.

The exemptions from filing tax returns come into effect from the financial 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 to salaried employees will be treated as Income Tax Return, he added.

Read Memorandum on Budget clause in Finance Bill

Exemption to a class or classes of persons from furnishing a return of income
Under the existing provisions contained in section 139(1) of the Income-tax Act, every person, if his total income during the previous year exceeds the maximum amount which is not chargeable to income-tax, is required to furnish a return of his income. In the case of salaried tax payer, entire tax liability is discharged by the employer through deduction of tax at source. Complete details of such tax payers are also reported by the employer through Tax Deduction at Source (TDS) statements. Therefore, in cases where there is no other source of income, filing of a return is a duplication of existing information. In order to reduce the compliance burden on small tax payer, it is proposed to insert sub-section (1C) in section 139. This provision empowers the Central Government to exempt, by notification in the Official Gazette, any class or classes of persons from the requirement of furnishing a return of income, having regard to such conditions as may be specified in that notification. Consequential amendments are also proposed to be made to the provisions of section 296 to provide that any notification issued under section 139(1C) shall be laid before Parliament.


Post a Comment