As many as 85 lakh tax payers will benefit from the government’s decision to exempt persons earning less than Rs 5 lakh a year from filing I-T returns, a finance ministry official said.
“The decision, which will come into effect from June 1, 2011, will reduce the compliance burden about 85 lakh small taxpayers,” he 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.
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, the official said.
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If I understand properly,a person exempt from filing return cannot escape the requirement of a securing PAN card.
Who are the entities covered under ‘Classes of Persons’?
Do they enjoy the option to voluntarily file IT Return?
Issues such as claim for refund / recoveries and related ones arise.
Hope and trust the notification to follow will be comprehensive.
An FAQ will be most welcome.
Dear friends,
This notification doesn’t restrain u to file ur return at all. U have the option to file ur return. This facility is only for those persons who have no income from business/profession.
Sir,
(1) If an assess has a refund to be claimed he/she will have to file income return irrespective of the limit of 5 lakhs from business or salary.
(2) It is not that u are not allowed to file your return. A person voluntary can files return, since for business individuals it is the only proof a person can submit to bank for loans.
For information purpose.
income of Rs 5 lacs means, total incoome OR taxable income, pl clarify
Does the assessee have the option to file returns in case he requires the same for raising loans or the returns will not be accepted atall. – Murali
Sir,
What will happen to those individual whose salary income are less than said limit of 5 lakhs but there is IT refund? They has to file return? hope Govt includes this matter also as lay man will get confuse