No Need to file Tax Return if income below Rs.5 Lakh – Will Benefit more than 85 Lakh Indians
No Need to file Tax Return if income below Rs.5 Lakh – Will Benefit more than 85 Lakh Indians
A finance ministry official said that government of India has decided to to exempt persons earning less than Rs 5 lakh a year from filing I-T returns.
"The decision, which will come into effect from June 1, 2011, will reduce the compliance burden about 85 lakh small taxpayers
Tax payers with income of less than Rs 5 lakh will not have to file tax returns for the assessment year 2011-12 and a notification in this regard is likely next month
As per the Memorandum to the Finance Bill 2011, the government will be issuing a notification exempting ''classes of persons'' from the requirement of furnishing income tax returns.
In case such a salary earner has income from other sources like dividend, interest etc and does not want to file returns, he will have to disclose such income to his employer for tax deduction.
However, if such an assesse wants to claim a refund, he will have to file the I-T return.
The Form 16 issued to salaried employees will be treated as Income Tax Return.
The idea behind the move is that in cases where there are no other sources of income, filing of a return is a duplication of existing information.
Reality Views by sm-
Sunday, May 08, 2011
Keyword Tag – Exemption Income Tax Return Rs.5 Lakh
Source - PTI
13 comments:
This is good news. It clearly shows that the value of money has gone down considerably.
Joseph
Joseph Pulikotil,,
thanks.
yes it is good move by Govt.
That is really good information sm, Hope it will come as a great relief to many
This is really a good and practical step from the concerned authorities....it was not needed actually.
chitra,,
thanks.
IRFANUDDIN,,
thanks
Government has to show fiscal discipline and immediately make plans to reduce its expenditure. Instead of this what the government seem to be doing is to get 85 lakh peoples' support and in the process willing to reduce its income.
Kirtivasan,,
thanks.
The question is who will be the guiding spirit to tell the government that even reduction in the government expenditure will be people popular?
I am sorry for blogging on possible motive of government.
Maybe 85 lakh people have to pay tax but need not file IT returns.
Kirtivasan,,
thanks.
Its a good move - will save quite an effort on both sides as the tax is deducted by the employer anyway.
Destination Infinity
Destination Infinity,,
thanks.