No IT returns for salaried people with income below Rs. 5 lakh

February 28, 2011 04:13 pm | Updated November 17, 2021 03:39 am IST - New Delhi

In a big relief to the taxpayer and in a bid to reduce the workload of the income tax officials, Finance Minister Pranab Mukherjee on Monday proposed exemption from filing tax returns to those earning up to Rs. 5 lakh unless they had other sources of income.

The government will be issuing a notification in this regard, said the Memorandum to the Finance Bill 2011. The decision will come into effect from June 1, 2011, it added.

Salaried taxpayers who do not have other sources of income and whose incomes are subject to Tax Deduction at Source (TDS) will be excluded from filing returns. Therefore, in cases where there is no other source of income, filing of a return is duplication of existing information, the Memorandum said.

“Salaried people, may be up to Rs. 5 lakh, need not file the income tax return,'' Central Board of Direct Taxes (CBDT) chairman Sudhir Chandra told reporters later during the post-budget briefing.

In case such a salary earner has income from other sources like dividend and interest and does not want to file returns, he will have to disclose such income to his employer for tax deduction.

Mr. Chandra said. “The Form 16 issued to salaried employees will be treated as Income Tax Return.” Every person whose income exceeds the taxable limit is presently required to file returns. Another Finance Ministry official said the decision to raise tax exemption limit of very senior citizens (aged above 80) to Rs. 5 lakh will benefit about 15,000 tax payers.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.