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Tax queries 802 views 11 replies

saivarma

articles assistant

127 Points Joined August 2009

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.
Tax returns No income tax return filing upto Rs. 5 Lakh earnings!
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.

Replies (11)

Guest

CA ADITYA SHARMA

CA IN PRACTICE

16719 Points Joined May 2011

good move

DIPESH

CA Final Student

47 Points Joined January 2009

Yes actually even i read this article a few days back on yahoo......its actually a good move i belive but every coin has two sides, we must not forget that even.

Ravi Dasija

C.A.

273 Points Joined March 2011

What if a person has salary income less than 5 lacs but has interest income from the investments that he had made...... in such a case will he be liabile to file the returns or no????

Kindly Reply

vikas verma

Chartered Accountant

282 Points Joined January 2010

@ mr. Ravi

He will have to file return as it is clearly specified that a person having any other income will have to file returns.

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3489 Points Joined June 2011

Notification is yet to be issued

Karthik.M

CA Final

77 Points Joined September 2009

How can a person will be having only one source of income, when he is earning nearly 5 Lakh, definitely he will go for some savings which will fetch him interest income. Thus practically it looks impossible.....

Pulkesh Mehta

Chartered Accountant

243 Points Joined December 2009

1.In above case duty of filling IT return get transfer to Employer,that means employer has to file return for the person having salary less than Rs.5 Lacs .

2. TDS deducted by employer on taxable salary income deemed as return filled by employer

But it is allowed only when Employee have only salary income

ravi singhal

CA Final

96 Points Joined October 2007

the provision is very clear. it says that: if u are a salaried employee and u have interest income and if both of these incomes are less then 5 lacs then no need to file the return. but if this case satisfies and u have anyother income like Capital gain or House propery income then u will have to file a return. else form 16 will serve as ur return.