As many as 85 lakh salaried tax payers with an annual income of up to Rs 5 lakh will not have to file income-tax return from now onwards, a finance ministry official said.

“No income-tax returns would be required for salaried persons earning up to Rs 5 lakh per annum. We would notify this in first week of June,” outgoing Chairman of Central Board of Direct Taxes Sudhir Chandra told reporters here.

The scheme would be applicable from assessment year 2011-12 onwards. This means that the salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year).

However, such tax payers would have to file return if they want to claim refunds, Chandra said. 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 would have to disclose such income to his employer for tax deduction.

In the scenario, 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.


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0 responses to “Notification soon on exempting People earning upto Rs 5 lakh from filing Income tax Return”

  1. ajit says:

    Earning upto 5 Lkahs means total income. So taxable income will be less.

  2. CA.PUSHKAR NATH says:

    it is big relife for salaried upto 5 lacs.

  3. g.s.chowdhary says:

    i would like to know
    Rs 5 lacs means, total salary OR taxable income

    • Nareshchandra Acharya N.B. says:

      Dear Mr.G.S.Choudhary,

      If you are employee, earning total salary upto Rs.5.0 lacs (viz.not more than Rs.41667/- per month), you are not required to file a return of income. The tax is deducted from the salary after reducing the amounts u/s 10 and u/s 80C to 80U of the Income Tax Act, 1961. The TDS is calculated on the net amount of salary of deductions u/s 10 & 80C to 80U and the amount so deducted would be paid to the credit of the Central Government. Hence, you are not at all required to pay any more taxes and hence you are not required to file any return of income. Also you have to inform your employer about the deductible investments/deposits, like PPF, LIC, NSC, children’s education fees, etc you have made on your own other than directly paid from your salary. If you have not informed about these investments/deposits to your employer, then also you have to file the return of income to avail those deductions and get refund. On the other hand, if you have any incomes from other sources like, property, business, capital gain, agriculture, etc apart from the salary as mentioned, then you have to approach an income tax professional and file the income tax return. Because the tax planning becomes somewhat complex.

  4. AKSAXENA says:

    we required Form No ITR-2 in Excell format updated for filing the return with ack.

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