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Why we should file the return? If CBDT exempts return-filing for salaried having total income upto Rs 5 Lakh.


Some reasons:

1.The tax department has notified that individuals with salary income below Rs 5 lakh are not required to file their tax return subject to certain conditions* being met. Though this move would benefit the new entrants to employment, for others this rule is nothing but increased confusion in deciding whether to file tax return or not.

*Conditions for exemption from filing tax return under Rs 5 lakh rule:

A. Single employer income.

B. Savings account interest up to Rs 10,000.

C. PAN should be correctly declared to the employer.

D. Employer should have deducted tax on both salary & savings account interest.

Accordingly, an individual who has income from multiple employers or FD/term deposit interest or house, wherein she/he is claiming interest deduction would need to file her/his tax return.

2. How can you declare your Saving Bank Account Interest income of year ending March to your employer before year ending to deduct the TDS. 

3.When you file your tax returns every year, you manage to create your financial record with the tax department.

This financial/tax history is positively viewed and favourably used by most agencies with whom you may need to interact, such as when you avail any kind of loan (home, personal, vehicle loan, etc), when you apply for VISA etc.

4.Proof of (financial) life.

Income tax return is essential for making any investment and goes to prove that you have a valid source of income to make such investment.

Considering the above points, filing your tax return seems to be a GOOD IDEA.

Abhishek Ranjan Singh

ARS Solutions

Published by

Abhishek Ranjan Singh
(Managing Director and Founder of ARS Solutions)
Category Income Tax   Report

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