Income tax return not filed

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2011 Hi,

If a person has got salary income and the total income is less than 5 lacs....say Rs.495000, appropriate tax has been deducted. Besides salary he has interest from a savings bank account and has received dividend during the year to the tune of 2000 (no TDS deducted) taking the total taxable income to Rs. 497000 .

1.Are interest from savings bank account & dividend a taxable income or its exempt from tax?
2. Is it mandatory for him to file ITR?

Please advise.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 August 2011 The issue raised has to be looked into with reference to CBDT Notification 36/2011 dated 23/6/2011. As per that notification, salaried employees having salary and bank s.b a/c interest income,subject to certain monetary limits, are exempted from filing returns. But in your case,u derive dividend, though exempted in most cases,hence the referred notification seems not applicable to u meaning thereby income tax return has to be filed.

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2011 When you say that s.b. a/c interest is exempt + dividend too is exempt then does he need to show these 2 as taxable income and pay tax on it ? or its just for IT information that these 2 additional incomes are exempt icomes ?

Please advise.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 August 2011 I didn't say s.b interest is exempt. Interest on s.b account is fully taxable. Dividend from Indian companies is totally exempt under section 10(34)of the Income tax Act,1961.

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