Its Official – If you are salaried and earn less than Rs. 5 Lakh a year – There is no need for you to file income tax returns for assessment year ending 2012. What his means that salaried persons will not have to file returns for earnings in current financial year (2010-2011).
Indian Government has been trying to simplify Indian taxation processes for past couple of years now, and this announcement is a big step towards that. Last year, during the budget announcement, Direct Tax Code bill was introduced which promised to make life simple for consumers as well as Businesses for filing tax returns.
Although, this directive was part of the Direct Tax code bill, it was officially announced yesterday. This will save lot of time, effort & money of over 85 lakh Indian citizens (who earn less than Rs. 5 Lakh p.a) and file tax returns year after year, without much change.
However, there are certain caveats – This is applicable only to people who do not have any income from any other sources. For e.g: If you are trading in stocks, investing in mutual funds or earning money from real estate property etc. you will have to file Income Tax returns.
Also, under this scheme if you if you want to claim Tax refunds – you will have to file taxes.
How it will work for Salaried Employee
Essentially, Employees who are eligible under this scheme for filing tax returns will have to disclose their earnings (other than salary, like interest, dividends) to his / her employer. The Form 16 which is issued at the end of the year will then be treated as Employees Income Tax Return itself.
In India majority of employees earn less than Rs. 5 Lakh salary, but most of them have other sources of income as well. So, it will be interesting to see how many of them actually avail this facility of “No Income Tax Return Filing”.
What do you think?
[Suggested reading: Top tax saving instruments for investors and Income Tax Return Filing – 7 Formulas for Error Free and easy filings]
Now 5 Lakh income is Tax Free but now a days articles related to “how to save tax for 15 lakh income” is popular.
Effect of increase in inflation seen in Basic Tax limit.
I m a retired employee. my income from investment and pension are less than 5 lakhs per yer. do I need to submit ITR for d assessment yr 2012-13 since I was regularly submitting return for d years back.
Hi All,
Even if paying tax also do we need to file tax return, why we need to do that?
Income is more than 5 lac.But the taxable income is less than 5 lac after deduction.Is it necessorry to file return?
New Form 16 has been issued by the NSDL site itself…andit is not reflecting the Earned Salary Income but just giving the amt of TDS deducted & Paid. The Employer again has to give the Supportive Income Document to the Employees…to help them to know The Income they have earned in a F.Y.
Hi All
Income over 5 Lac will not hane to file return but they are liable to pay tax on their income.
Only thing is if they want to not file return its ok.
but they have to pay tax on income.
You can file it through your CA or a tax consultant. I used to file it through my CA all these years, last year for the first time I filed it online.
http://www.taxprintindia.com/income-tax-software.htm
Is this 5 lakhs, gross income or taxable income (i.e, after deductions)?
hie
Hi
can salaried person examted to fill up returns from financial year 2010-11(assessment year 2011_12).
Ohhh, ina paise though main kamathei nahi hu! :)
oh ji faltu log faltu batein panav mukhrjee key man ko bhaya usney return ka chakker hataya per rahega to woh jagira hi na matlab logon ki jeb sey paisa nikalney wala.
Which amount from form 16 must be considered – Income under the head salaries / Total income (after deductions)? Also, I have read on a website that the Govt. is yet to issue a notification and individuals should wait till they get more clarity from the Govt.
There is an official notification already out from the Govt. so nothing to wait for…it has been finalized and implemented..
hi arun,
i am getting 3 laks per anum.
is der any procedure to escape from tax pay/returns.
let me now plz,
yes this is true.. my sir was tellin us bout this during our taxation class.
from when this rule will be implemented and my salary will be saved from tax , and how can i get my tax which i paid till now plz help me.
Is tis true, plz confirm some one.
Offcourse this is true – DO you think I will putting false information here on this blog ? come on….
A very small proportion of the people would be able to avail this as ITR is also a necessary document at the time of applying for loans.
No – If you avail of this facility your Form 16 will be treated as the Income Tax returns – It carries the same authority as your ITR form!