Income tax return for zero tax

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Form 16 is issued by the company to a salaried employee where the income tax deduction is "zero". Should he file income tax returns if he doesnt have any other income other than salary?

Kindly reply.

Thank you.

Replies (4)

It is better to file Income Tax Return, even if tax liability comes to zero. It may help u in getting loan hassle free.

Dear Varun,

Please go through the following:

Who can Claim Exemption 
  1. This exemption is available to Individual assessee only (He may be resident or not)
  2. Exemption is available for Assessment year 2012-13
  3. Total Income(after deduction 80C to 80U) of Individual must be up to Five Lakh Rupees only.
  4. Income must be earned from Salary and/or Saving Bank Interest up to Rs 10000/- .Pension is also covered under salary head.
  5. Individual must have reported his pan to his employer.
  6. He has Earned salary only from one employer during the year.
  7. He has reported his income from saving Bank Interest to his employer for TDS deduction purposes.
  8. Employer has deducted the tax on his Full income,salary plus interest {if any},and tds has been deposited in Govt account by the employer.
  9. No refund is Due to assesse .
  10. Individual has received Form 16 From the employer ,which mention PAN, Income detail and Tax deducted and deposit detail.
If all the above conditions are satisfied then you can are exempted to file Income tax return for Financial year 2011-12.

So in your case you can claim exemption from filing return of income for the Financial year 2011-12 or Assessment Year 2012-13.

Thank you so much Ms.Sonam and Mr.Pawan. I had a doubt regarding the excemption criteria and now its clear. 


CCI Pro

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