No need to file income tax returns for income upto Rs. 5 lakh

No need to file Income Tax Returns for Income upto5 LakH . . . => . . . . . . . . . .Yes, you read it right. There is no need for you to fileIncome Tax Returnif your Income is upto5 Lakh. The Govt. vide notification No.36/2011 dated 23/06/2011 has notified a scheme exempting all Salaried Tax Payers with Income less than5 Lakh. As per the new scheme:- . . . . . . . . . . . . 1.If an Individual has Salaried Income (from not more than 1 Employer in that year) of less than5 Lakh(Figure of5 Lakh to be computed after all allowable deductions) . . . . . . . . . . . . . . . . . . ,. . . . . . . . . . . . . . . . . . . .. 2.Has Interest Income of less than10000Such Class of Individual is exempt from filing Income TaxReturn provided such class of Individual has:- 1.Reported his PAN No. to his Employer 2.Reported his Interest Income to his Employer and the Employer has deducted Tax thereon 3.Received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government 4.Discharged his Total Tax Liability for the Assessment Year through Tax Deduction at Source and its deposit by the Employer to the Central Government . . . . . . , 5.Has no claim of Refund of Taxes due to him for the Income of the Assessment Year 6.Has received salary from only 1 Employer for the Assessment Year. . . . However, the exemption from the requirement of furnishing a Return of Income Taxshall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year i.e. if your returns have come up for scrutiny or your income has escaped assessment Moreover, if you have any other Income other than specified above, you may not be able to claim this . . . . . . . . . . . . . . . . . . . . . . . . . Exemption.Practical Insight: – Salaried People with6.5 Lakh Income may also get exemptThe above Notification says that if an Individual has income less than5 Lakh (after deductions), he is exempt from filing Income Tax Return.Now, let’s take an example . . . . . . . . . . . . . . . . *.Suppose you have Income of6.5 Lakh . . . . . . . . . . . .*.Now you can Invest upto1 Lakh u/s 80C (EPF, PPF, Mutual Funds, Life Insurance etc) . . . . . . . . *.You can also invest20000 in Infrastructure Bonds u/s 80CCF , . . . . . . . . . *.Health Insurance is also deductible from Taxable Income –15000 for self and20000 for Parents u/s 80D . . . . . . . . . . *.After taking the above into account, you are left with a Taxable Salary of4.95 Lakh and there is no need for you to file Returns for Taxable income below 5 Lakh Thus an Individual with Income less than6.5 Lakh is also exempt from filing Income Tax Return provided he makes use of all the available deductions. . . . . .smile.