Exemption to a class or classes of persons from furnishing a return of income
Under the existing provisions contained in section 139(1) of the Income-tax Act, every person, if his total income during the previous year exceeds the maximum amount which is not chargeable to income-tax, is required to furnish a return of his income.
In the case of a salaried taxpayer, entire tax liability is discharged by the employer through deduction of tax at source. Complete details of such taxpayers are also reported by the employer through Tax Deduction at Source (TDS) statements. Therefore, in cases where there is no other source of income, filing of a return is a duplication of existing information.
In order to reduce compliance burden on small taxpayers, a new sub-section (1C) is inserted in section 139. This provision empowers the Central Government to exempt, by notification in the Official Gazette, any class or classes of persons from the requirement of furnishing a return of income, having regard to such conditions as may be specified in that notification.
Consequential amendments are also made to the provisions of section 296 to provide that any notification issued under section 139(1 C) shall be laid before Parliament.
Applicability – These amendments take effect from 1st June, 2011.
Raju Lahori
Since the employer is claiming exemption as an expenditure under the IT Act for premium they pay on the employees the employee cannot claim tax benefit under provisions of chapter VI A.
In case the employer has deducted excess Tax because of any reason, and no return is filed by the employee, then whether the employee will get the refund of excess tax deducted? Please clarify.
On hand it is added as perquiste as benefit given by employer and on other hand benefit under Sec 80d can be availed as it is on employees individual name.
I would like to know that if premium for mediclaim policy paid by employer
do the employees get benefit of tax rebate