www.caclubindia.com/homepage/maheshkapasi
MAHESH KAPASI E-Mail: maheshkapasi49 @ gmail.com
Chartered Accountant Phone: 2686 8147
M. Com., LL.B., FCA, FICWA, FCS B-49,
New Delhi-110 049
Reference No. Dated: July3, 2011
THE CBDT has announced that salaried people whose total annual income is Rs. 5 Lakhs or less needn’t file an income tax (IT) return. However, this income only includes salary from one employer and interest income up to Rs. 10000. Income from other sources, such as house property, business and profession and capital gains, are not covered. To get refund naturally filing of return is a must. This is welcome. But it would be better either all assessees with an income of up to Rs. 5 Lakhs are exempted from filing their tax returns.
However, the best course of action is to raise the basic exemption limit to Rs. 5 Lakhs for all individual assessees so that small assessees are out of net of income tax (yes Rs.5 Lakhs per annum is a pea nut in the present time of continuing inflationary trend-purchasing power of Rupee is diminishing in the local market to the lowest levels of all the times).
Also to give relief to small taxpayers at present from tax hassles it would be more appropriate to raise TDS limits to a reasonable levels –say increase all the present monetary limits by ten times of present ones at all levels. It shall reduce lot of paper work and save time of millions of persons directly or indirectly involved in it.
Remember raising tax exemption limits and lower tax burdens always increases tax revenue as then it becomes more realistic with the changed time. Catch hold big fish …become wise pennywise too. Are you listening tax authorities?
(Mahesh Kapasi)
CAclubindia
