CBDT recently issued a notification on exemption from filing of Income Tax Returns for salaried people whose income is less than Rs.5,00,000/-
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Many salaried people may be happy that they are freed from filing of returns & save precious time & labor.
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But how many actually have read the whole notification is the question. The complete notification can be stated in the following terms:
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Sl No |
Notification |
Effects |
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(a)�� � |
Income earned during the year must be only from salary and interest. |
Assesses who have income other than salary, interest will not be exempt |
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(b)�� � |
Salary must not be more than Rs.5,00,000/- |
If you earn more than 5,00,000 sorry, No exemption |
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(c)��� � |
Interest must be from Savings Bank only. |
This is the main rider. I don�t think there will be many people who earn more than 5,00,000 in a year and not invest it in stocks, shares, gold, silver or atleast in Fixed Deposits. |
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(d)�� � |
Interest Income i.e. from SB has to be informed to your employer and tax has to be deducted at source on such income from your employer. |
Very funny, most of us will not know how much I will be receiving interest on the SB account, If we have time to calculate that I think it is better to file the returns. And more over this notification is given at a time when FY is over. I think I can count the number of people who have stated there SB interest to the employer in my hands only. � |
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(e)�� � |
There must be only one employer during the whole financial year. |
So if you have changed a job you will have no exemption. |
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(f)���� � |
Other not specifically stated in the notification but can be extracted out of it. i)������� Have to tried to save taxes by way of purchasing NSC, ELSS, MF ii)����� Have to obtained investment under section 80CCF � |
� � � Then NO EXEMPTION � Then NO EXEMPTION � |
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Given the fact there will no person who earns between Rs.1,60,000 and Rs.5,00,000 having investments (Stocks, shares, gold, silver, FD etc) or has a House Property (Self or Let out) or has tried to save taxes by purchase of tax savers (NSC, Post Office Deposits, 80CCF Bonds, Mutual Funds etc), given the high rate of employee turnover in industries like software companies and other finance companies ( the people who are most often the income tax filers) theoretically the amendment to give an exemption is of no use.
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CAclubindia
