Saturday, 21 July 2012

I-T return is not necessary for Income up to Rs. 5 lakh



                On this Friday, the Central Board of Direct Taxes announced that, salaried employees, who have an annual income of below Rs 5 lakh, are exempted from filling Income Tax return for assessment year of 2012-13, provided they don’t have any sort of other incomes whatsoever.

                  They also added that different individuals who are having earnings via interest from savings bank deposits are also exempted from filling Income Tax returns only if the total interest component is less than Rs 10,000 per year. Eventually here total annual income of Rs 5 lakh means the total gross income of a salaried employee after the deduction of all necessary taxes.

                    The announcement contained a very important disclosure for all the beneficiaries. There is a small condition to get this tax benefit. The exemption is possible only when an employee has provided his Permanent Account Number (PAN) to his employer and all of his interest income via different savings bank being reported properly before Form 16 is generated.

                     This facility of exemption to I-T file returns also applicable to those individuals, whose tax liability has been fully taken care by the employer and also deposited to the government through Tax Deducted at Source (TDS) deposits.

                      If an employee needs to claim his tax refund, he will just need to file the returns. The exemption will also not apply to those to whom the tax authorities have issued notice to file Income Tax returns. So you need to file your I-T return as early as possible to get this benefit.

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