Income Tax Return not needed for salary less than 5 lakh

by GConnect TeamMarch 1, 2011

[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.

  • J.V.Dharmadhikari
    July 11, 2011 at 2:45 pm

    I am 63 years old and a pensioner. My total income including pension, interest from Sr. citizen scheme & interest from other savings is around Rs. 3.6 Lacs. After deduction of interest and principle amt. of housing loan, the taxable amt. is around Rs. 2.35 lacs. I have paid the requisite amt. of tax directly through bank for the year 2010-11. Am I required to file the IT return for the year 2010-11 and subsequent years to come ?

    • admin
      July 20, 2011 at 8:37 am

      One of the conditions for exemption from filing income tax is as follows

      “individuals (seeking exemption) must report their Permanent Account Number (PAN) and the entire income from bank interest to their employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No.16.”

      It appears that Form 16 will not arise in your case.

  • Ramakrishna
    March 1, 2011 at 10:26 am

    I am a pensioner aged 62 yrs.

    (1) Am I required to file the IT return?
    (2) If I am covered under Rs.2,50,000, is it inclusive of the interest I earn on the bank FDs which were my retirement benefits?

    • admin
      March 3, 2011 at 8:01 am

      As per the proposal of FM to the effect that no return needs to filed if the income is less than Rs.5 lakh, you need not file any return for the financial year 2010-11 as this proposal is to be implemented from 1st June-2011. Any way this is only a proposal. Unless formal notification is issued to this effect you may have to file a return

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