Exemption of salaried income upto Rs. 5 lacs

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 24 June 2011

Thanks for d update.

1 Like

Nirmala (Articles Student) (107 Points)
Replied 24 June 2011

tks a lot Mr.Ankur

CS Bijoy (Expert) (6394 Points)
Replied 24 June 2011

Is this a good step by CBDT

According to me its a bad step taken by the CBDT because it can affect the tracking system of Individual Income which can be traced earlier by Return.

In Incometax there are so many loopholes and advantageous section for the Tax Payer to reduced their tax liablity. In such condition if the Department failed to track the Income than it could be serious problem.

Need Advice.......

CA B.S.Sridhar (Chartered Accountant) (278 Points)
Replied 24 June 2011

In my opinion , this could not be used by most of the assessees for the A.Y.2011-12 (F Y 2010-11) on account of the following :-

As per the Notification, the Interest should have been declared to the employers and the same should have been considered for calculating the Tax and the tax should also be deducted for the same.

Moreover , the time limit for issue of Form 16 is also over and all the employers would have issued their Form 16 , by now.

Please share your views.

Many people have misunderstood this to the Basic Exemption limit and i have already started getting calls from many people in this regard.

srinivass (CA Final) (2466 Points)
Replied 24 June 2011

really true it is Originally posted by : B.S.Sridhar
	In my opinion , this could not be used by most of the assessees for the A.Y.2011-12 (F Y 2010-11) on account of the following :- As per the Notification, the Interest should have been declared to the employers and the same should have been considered for calculating the Tax and the tax should also be deducted for the same. Moreover , the time limit for issue of Form 16 is also over and all the employers would have issued their Form 16 , by now. Please share your views. Many people have misunderstood this to the Basic Exemption limit and i have already started getting calls from many people in this regard.

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 24 June 2011

Thanks for d updates sir,

VIVEK (CHARTERED ACCOUNTANT) (34 Points)
Replied 24 June 2011

A very good step.But how about the pensioners?Whom they should inform about their interest on S.B.account,if they are getting their pension from Govt.?How about the income/loss from Housing Property?How about those having exempt income like dividend from Mutual Funds,Equity shares etc?Kindly enlighten.Thanks.

Vivek Naik

VIVEK (CHARTERED ACCOUNTANT) (34 Points)
Replied 24 June 2011

I agree with Mr.Sreedhar.This should have been done little earlier.That would have benefitted many ,those are having only salary income alongwith a small interest on S.B.account.Certain confusions like the procedure for pensioners for getting this benefit etc should be made clear.

Vivek Naik

RONAK DARJI (CA FINAL) (382 Points)
Replied 24 June 2011

Thanks For latest Updation..

Regards,

Ronak Darji

AMIT KR GHOSH (TAX CONSULTANT) (143 Points)
Replied 24 June 2011

IN MY VIEW EVERY SALARIED PERSONS SHOULD FILE RETURN, ABOUT 50% HAVE FIXED DEPOSIT WITH BANKS, THEY DONOT SHOW IN THEIR INTEREST RECEIVED FROM F.D., ALSO HAVE DEPOSITS IN POST OFFICES.

EMPLOYEE COMMING UNDER INCOME TAX SLAB, GIVING INCOME TAX SHOULD SUBMIT RETURN,
THERE IS NO LOSS BUT THE RETURN WHICH HE SUBMITS WILL GIVE BENEFIT IN FUTURE FOR ANY LOAN PURPOSE OR ANY EVIDENCE.

REGDS

AMIT

Simranjeet Singh (Proprietor at S Simranjeet & Associates Company Secretaries) (4396 Points)
Replied 24 June 2011

Thanks for d update.

sarven kumar gupta (Data Associates) (21 Points)
Replied 24 June 2011

Originally posted by : CS Ankur Srivastava
	The Central Board of Direct Taxes has notified the scheme exempting salaried taxpayers with total income up to Rs.5 lakh from filing income tax return for assessment year 2011-12, which will be due on July 31, 2011. Individuals having total income up to Rs.5,00,000 for FY 2010-11, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account up to Rs.10,000 are not required to file their income tax return. Such individuals 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. Persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims shall not be covered under the scheme. The scheme shall also not be applicable in cases wherein notices are issued for filing the income tax return under section 142(1) or section 148 or section 153A or section 153C of the Income Tax Act 1961.