- This exemption is available to Individual assessee only (He may be resident or not)
- Exemption is available for Assessment year 2011-12.
- Total Income(after deduction 80C to 80U) of Individual must be up to Five Lakh Rupees only.
- Income must be earned from Salary and/or Saving Bank Interest up to10000/- .Pension is also covered under salary head.
- Individual must have reported his pan to his employer.
- He has Earned salary only from one employer during the year.
- He has reported his income from saving Bank Interest to his employer for TDS deduction purposes.
- Employer has deducted the tax on his Full income,salary plus interest {if any},and tds has been deposited in Govt account by the employer.
- No refund is Due to assesse .
- Individual has received Form 16 From the employer ,which mention PAN, Income detail and Tax deducted and deposit detail.
- If His Total taxable income after deduction u/s 80C to 80U is more than 5 (five) Lakh rupees.
- If refund is due to Him .
- If his total income includes any one of following Incomes
- Income from House property Including minus Income from interest on House Loan.
- Income from Business/profession
- Income from capital gain
- Income from Interest other than Interest from saving bank up to 10000.Suppose you have earned interest from FDR then you can not claim exemption from return filing.
- Saving Bank interest is more than 10000 rupees.
- Any other Income under "Income from other source"
- If He has not offered his Saving Bank interest income to his employer for tax deduction.
- If he has discharged His tax liability through advance tax or self assessment challan.
- If he has received salary from two employers during the year.
- If he has not submitted his PAN to his employer.
- If Form 16 has not been issued to Him by His employer.
- If notice u/s 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income
- If assessment year is other than 2011-12.
- This circular is Good for Salaried persons But Most of them is not able to fulfill conditions given in the Notification. Very few employees declared saving Bank interest to their employer . Even employer are reluctant to consider other income of assessee for Tds deduction .So due to this reason most of the salaried person having total Income can not avail exemption given under this notification.If the circular has been issued in Feb-March 2011 then position may have changed.
- Second Point is Interest Limit has been fixed up to 10000 only.Further that is also restricted to saving bank interest only .Person having salaried income up to 500000 may have FDR Interest or other Interest income . I am not able to under stand ,why nature of Interest has been restricted if monetary limit has already been specified . Now person having FDR interest plus saving interest less than 10000 can not avail this Exemption also.
2(iii) has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;
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Press Release