Posted: 06 Jun 2011 09:24 PM PDT
Its Official – If you are salaried and earn less than Rs. 5 Lakh a year – There is no need for you to file income tax returns for assessment year ending 2012. What his means that salaried persons will not have to file returns for earnings in current financial year (2010-2011).
Indian Government has been trying to simplify Indian taxation processes for past couple of years now, and this announcement is a big step towards that. Last year, during the budget announcement,Direct Tax Code bill was introduced which promised to make life simple for consumers as well as Businesses for filing tax returns.
Although, this directive was part of the Direct Tax code bill, it was officially announced yesterday. This will save lot of time, effort & money of over 85 lakh Indian citizens (who earn less than Rs. 5 Lakh p.a) and file tax returns year after year, without much change.
However, there are certain caveats – This is applicable only to people who do not have any income from any other sources. For e.g: If you are trading in stocks, investing in mutual funds or earning money from real estate property etc. you will have to file Income Tax returns.
Also, under this scheme if you if you want to claim Tax refunds – you will have to file taxes.
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