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Tax queries 622 views 2 replies

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"The govt exempts from filling Income Tax return assessement year 2011-12 for Salaried ppl if his income with other source is upto5,00,000/- annually "

is this true? Can any one throw some light over this provision with relevant update with oneself? it an urgency for this

Replies (2)

Suresh Prasad

www.aubsp.com

15630 Points Posted on 26 May 2011

"Salaried people, may be up to Rs 5 lakh.(figure yet not confirmed )..they need not file the (income tax) return," CBDT chairman Sudhir Chandra told reporters at the customary post-Budget press conference.

The exemption from filing tax returns come into effect from the assessment year 2011-12.

In case such a salary earner has income from other sources like dividend, interest etc. and does not want to file returns, he will have to disclose such income to his employer for tax deduction, Chandra said.

The government, he said, is working out a scheme and will notify it "very soon".

The Form 16 issued to salaried employees will be treated as Income Tax Return, he added.

CA Rakesh Garg

Asst. MGR Taxation

510 Points Posted on 27 May 2011

The government has exempt salaried people earning up to Rs 500,000 annually from filingincome tax returns. A move that will bring relief to about 80 lakh people was announced by the Finance Minister Pranab Mukherjee [ Images ] when he presented the Budget in February. On Tuesday, Pranab Mukherjee said this will be applicable in the 2011-12 assessment year for the income earned in 2010-11. He said that a notice to this effect will be brought out soon.

This move will reduce the compliance burden on small taxpayers. In case such a salary earner has income from other sources like dividend, interest etc. and does not want to file returns, he will have to disclose such income to his employer for tax deduction.

The Form 16 issued to salaried employees will be treated as Income Tax Return, he added.

Asking the Central Board of Direct Taxes to be vigilant in suspected money laundering cases, Mukherjee cautioned that terror activities and other crimes are being funded by anti-national elements through illegal transfers.

Mukherjee disclosed that to check these transfers, government has approved setting up of Directorate ofCriminal Investigation in Income Tax Department itself.

The Directorate will track the criminal activities before, during and after the crime is committed.

Expressing his keenness on fiscal consolidation, Mukherjee stressed that fiscal deficit has to be reduced drastically to achieve the goal.