Who are Exempted and Who are not Exempted to Submit Annual Income Tax Return

As the public interest official notification issued by Income Tax Department regarding no need to file Income Tax Return upto 5 Lakhs of salaried person with a few conditions. As per the Income Tax Deparment notification No. 36/2011, a employee whose Taxable income not exceed Rs. 5 Lakhs (Five Lakhs) in annual, they exempt to file Income Tax Return. The following conditions are clarify/solve your problems:

Know about, Who are Exempted :

1. This exemption is available to Individual assessee only (He may be resident or not)
2. Exemption is available for Assessment year 2011-12.
3. Total Income(after deduction 80C to 80U) of Individual must be up to Five Lakh Rupees only.
4. Income must be earned from Salary and/or Saving Bank Interest up to Rs 10000/- . Pension is also covered under salary head.
5. Individual must have reported his pan to his employer.
6. He has Earned salary only from one employer during the year.
7. He has reported his income from saving Bank Interest to his employer for TDS deduction purposes.
8. 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.
9. No refund is Due to assessee.
10. Individual has received Form 16 From the employer ,which mention PAN, Income detail and Tax deducted and deposit detail.
    

Know about, Who are not exempted:

• If His Total taxable income after deduction u/s 80C to 80U is more than 5 (five) Lakh rupees.
• If refund is due to Him .
• If his total income includes any one of following Incomes (1. Income from House property Including minus Income from interest on House Loan. 2. Income from Business/profession; 3. Income from capital gain; 4. Income from Interest other than Interest from saving bank up to 10000.Suppose you have earned interest from FDR then you can not claim exemption from return filing; 5. Saving Bank interest is more than 10000 rupees and 6. Any other Income under "Income from other source.)
• If He has not offered his Saving Bank interest income to his employer for tax deduction.
• If he has discharged His tax liability through advance tax or self assessment challan.
• If he 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 by His employer.
• If notice u/s 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
• If assessment year is other than 2011-12.
  

To see Official Notification of Exemption from Income Tax Return Click Here

Posted in: No Income Return,No Penalty