- May
- 25
- 2011
Income below Rs 5 lakh? You need not file returns
The government has exempt salaried people earning up to Rs 500,000 annually from filing income tax returns. A move that will bring relief to about 80 lakh people was announced by the Finance Minister Pranab Mukherjee [ Images ] when he presented the Budget in February. On Tuesday, Pranab Mukherjee said this will be applicable in the 2011-12 assessment year for the income earned in 2010-11. He said that a notice to this effect will be brought out soon.
This move will reduce the compliance burden on small taxpayers. 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.
The Form 16 issued to salaried employees will be treated as Income Tax Return, he added.
Asking the Central Board of Direct Taxes to be vigilant in suspected money laundering cases, Mukherjee cautioned that terror activities and other crimes are being funded by anti-national elements through illegal transfers.
Mukherjee disclosed that to check these transfers, government has approved setting up of Directorate of Criminal Investigation in Income Tax Department itself.
The Directorate will track the criminal activities before, during and after the crime is committed.
Expressing his keenness on fiscal consolidation, Mukherjee stressed that fiscal deficit has to be reduced drastically to achieve the goal.
Sandeep Kanoi+
Dear Mr. Ashok,
You should definetely file return.
Dushyant Mishra
Money Concepts India
Support@mcindia.in
I have salary income 4 lacs after deduction and get rent from house proper 40 thousand per annum, May I Filed IT returned.
Yes, Bank interested income has to be added to you total income in the head income from other sources.
Dear Mr. Choudhary, if you have dual source of income then you should include your total income and show it.
My father in laws pension income is less than 5 lacs but bank interest is more than Rs 10000 so do he need to file a return ?
r u sure?
Hi Sunil,
Limit of Rs. 500000/- is of Gross Total Income, i.e. it is required to be seen before giving deduction u/s 80C, 80CCD, 80CCF, 80D, 80G etc.
Gross salary income is above 5 Lakhs, after deduction of 80C it’s come below 5 Lakhs. The he required to File IT return or Not
i am getting 2.48lpa ,will i be exempted from tax according to the new rule…
dear friends
i have salary income 400000/- and i have house property loss 83,500/- will i required to file return of income or not
Thanks and regards
BAbu
Dear Mr. Prashant
pension income is a part of salary but interest is considered as other sources of income and as your interest income is above Rs.500000 it is advisable to file income tax return. The definition of salaried employee are worth to study..
Hve grt time……….
If I am a pensioner (retired from bank) and getting pension plus interest on fixed deposits more than Rs.5 lacs annually, do I need to file return or disclose interest income to my previous employer (bank) without filing return?
Yes, The Bank will started to give loan on the basis of Form 16 submitted by requester.
Dear Mr. Chowdhary,
If your total Income including(Current Salary + Pension Income) is less then Rs. 5 lac. then same condition would apply.
Dushyant Mishra
Money Concepts India
yes
For that u have to gone through the secotion 10 and also if the total income fom pension and salary exceed beyond 5 lakhs u have to filed return and if it is not exceed then u have to disclose such income to ur existing employer for tax deduction.
We have to wait till the actual notification is issued, to know the conditions (small print!). Till then, we should wait for answers to our doubts. However, how would an assessee know in advance the amount of interest he would earn, such as from savings bank and fixed deposit accounts, to report to his employer, unless this is done at almost the fag end of the financial year?
Good for honest tax payer
As per the line of Respected FIn. Misiter that “The Form 16 issued to salaried employees will be treated as Income Tax Return”, will it be suffice to bankers who provides various types of Loans to Salaried Emloyees?
What if the assessee has income from saving bank interest ? Whether he need to file the return in that case ? Moreover, salaried person has saving bank interest as other income.
govt is saying salary person of income of 5 lacs should not fill return.
Pl clarity. If I am salary person and also getting pension from my previous employer, should I fill income tax or not. pl clarify