Income Tax Return not needed for salary less than 5 lakh
[F]inance Minister Mr.Pranab Mukherjee has announced in the budge 2011 that Government has proposed to exempt salaried class from filing Income tax returns unless they have other sources of income. This exemption is proposed to allowed to salaried people having income less than Rs.5 lakhs in a year.
The government will be issuing a notification exempting 'classes of persons' from the requirement of furnishing income tax returns, said the Memorandum to the Finance Bill 2011.
Salary earners having an income of less than Rs 5 lakh will not have to file tax returns from this year.
CBDT chairman Mr.Sudhir Chandra also said in media briefing that Salaried people, may be up to Rs 5 lakh need not file the (income tax) return.
The decision, which will come into effect from June 1, 2011, will reduce the burden on small taxpayers.
Mr.Chandra said that 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, and that the Form 16 issued to salaried employees will be treated as Income Tax Return.