Many salaried people are still in confusion whether they have to file Income Tax Return or not.
Salaried employees earning up to Rs 5 lakh a year need not file income tax returns from this year, the Finance Ministry has clarified. The exemption from filing I-T returns is applicable only if “the total income of the employee does not exceed Rs 5 lakh and are satisfying few Conditions .
Income Tax department has issued notification no 36/2011 in this regard .This exemption is available only to specific category of employees .
Filing I-T returns is, however, necessary to claim refunds. The last date for filing tax returns is July 31, 2012.
The exemption will be permitted only if the assessee has received a certificate of tax deduction in Form 16 from the employer. The employees have to report income from interest on savings bank account to the employer to become eligible for exemptions
Following conditions are to be satisfied to claim exemption from return Filing :-
- This exemption is available to Individual assessee only (He may be resident or not)
- Exemption is available for Assessment year 2011-12.
- Total Income(after deduction 80C to 80U) of Individual must be up to Five Lakh Rupees only.
- Income must be earned from Salary and/or Saving Bank Interest up to Rs 10000/- .Pension is also covered under salary head.
- Individual must have reported his PAN to his employer.
- He has Earned salary only from one employer during the year.
- He has reported his income from saving Bank Interest to his employer for TDS deduction purposes.
- 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.
- No refund is Due to assessee .
- Individual has received Form 16 From the employer ,which mention PAN, Income detail and Tax deducted and deposit detail.
The above notification for exemption is optional for Assessee and he may or may not avail this exemption. That means even you have satisfied all the conditions given in the notification ,you can file your return.if you want to do so.
