Exemption of salaried income upto Rs. 5 lacs

Page no : 3

Pradeep Kumar (CA article,B.COM,CS) (303 Points)
Replied 25 June 2011

thanks.........

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amrangarajan (Official) (21 Points)
Replied 26 June 2011

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.

Thanks for the practical issues involved.

Ashish Kukreja (CA Final Student) (587 Points)
Replied 29 June 2011

Yes agree with B.S.Sridhar,its too late now !!!

Yogesh Shah (Managing Corporate Finance) (1051 Points)
Replied 02 July 2011

Originally posted by : Satish
	IF the salaried people wants any home loan or other loans the bank people will ask for the return submitted to the income tax department at that time what acknolgment or what proof he has to submit to the bank for availing the loan, at present the bank will collect the IT return filed by the employee, now the employee has to submit his Form 16 issured by the employer or what please clarify this point.

Hi Satish,

This scheme is optional at point of an assessee. If individual wants to take a loan in future, better he file the return (even if he is following all conditions). In my opinion, Bank will ask for ITR only and Form 16 will not serve the purpose.

Recently I read the article on this topic in newspaper. In that article also the author (who is CA) has said the same point. Hence, individual who wants to take a loan in future, has to file a return.