Salaried people earning 5 lakh a year to be exempted from filing IT return


May 8, 1:56 PM

About 85 lakh salaried people earning less than 5 lakh rupees a year will be exempted from filing Income Tax returns this year. According to official sources as per the Memorandum to the Finance Bill 2011, the government will be issuing a notification in this regard. It has decoded to exempt persons earning less than 5 lakh rupees a year from filing I-T returns for the assessment year 2011-12. The decision will come into effect from the first of next month. The Form 16 issued to salaried employees will be treated as Income Tax Return.

Official sources said, in case such a salaried person has income from other sources like dividend or interest and do not want to file returns, employee will have to disclose such income to his employer for tax deduction.

However, if such an assesse wants to claim a refund, he will have to file the I-T return.