Income Tax Return to be exempted in June-2011

Income tax Department (CBDT) has announced that the Government's Proposal to exempt salaried people in the income category of Rs.5 lakhs and below per annum will be issued as a notification in the first week of June.

This information was shared with media by Mr.Sudir Chandra, the Chairman of Central Board of Direct Taxes (CBDT) recently.

But, it's not a happy news for those who would seek of income tax paid in exess as refund.  Even if their annual income less than Rs. 5 lakhs, they have to file income tax returns.

It is also estimated that the proposed exemption from filing income tax return would benefit around 70 to 80 lakhs.

The salaried tas is also going to have a portal in which they can check whether the income tax deducted from their salary was actually paid in the Government's account.

In the Union Budget 2011-12 Finance Minister Mr.Pranab Mukherjee announced the proprosal to exempt salaried class with annual income of Rs. 5 lakhs and below from filing any Income tax return such as ITR-1, ITR-2 etc.

Source: The Economic Times