As per the latest notification from governement of India's The Central Board of Direct Taxes (CBDT), for all individuals who have salary income upto Rs 500000 ( 5 Lakhs), they need not file their income tax returns.
According to the notification, individuals having total income up to Rs 5 lakh for financial year 2010-11, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account of up to Rs 10,000 are not required to file their income tax return. Such individuals must report their Permanent Account Number (PAN) and the entire income from bank interest to their employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No. 16.
- If you have more than one employer
- Interest income more than 10 thousand
- Other sources of income besides salary
- Have a refund due
- The scheme shall also not be applicable in cases wherein notices are issued for filing income tax returns under section 142(1) or section 148 or section 153A or section 153C of the Income Tax Act, 1961.
The advantage of this scheme will be greatly reduced paperwork for both the government as well as the taxpayers. Since the employer is anyways submitting the tax details for the employee to the government on a regualar basis so there is no need for duplication for incomes which are relatively small.
This is a very positive step in the right direction to reduce the cost of collection of tax and bring more transparency.
Lakhs of young taxpayers will now not have to worry about paperwork and filing of their tax returns. Hopefully this will ensure that the tax officials are able to focus on the big fish and catch the tax evaders.
For more details please check the wesite of CBDT ( Central Board of Direct Taxes)
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