No Income Tax Returns Mandatory For People With Salary Less Than 5 lakh
Finance ministry has announced that employees earning upto Rs 5 lack per year, now need not file incom tax returns from this year. This exemption from filing Income Tax returns is applicable only if “the total income of the employee does not exceed Rs 5 lakh … (and) the annual interest earned from savings bank account is less than Rs 10,000″ for assessment year 2012-13. However it is still necessary to file Income Tax returns for claiming refunds.
There are around 85 lakh salaried employees in India whose yearly income is less than Rs 5 lakh. July 31 is the last date for filing tax returns. The exemption will be permitted only if the assessee has received a certificate of tax deduction in Form 16 from the employer.
The employees would have to report their income from interest on savings bank account to the employer to become eligible for exemptions. As per Income Tax Act 1961, till now it was mandatory for all salaried persons to file income tax returns. The tax department said special counters will be set up in Delhi and ‘tax kiosks’ in various parts of Mumbai to assist people in filing income tax returns.
This year there won’t be any return receipt counters are at Pragati Maidan in New Delhi. Rather returns will be received at Civic Centre, opposite Ramlila Ground, New Delhi, from July 26 to 31. The Mumbai income tax department is going to set up ‘tax kiosks’, manned by tax return preparers, at various locations in city to assist individual and HUF taxpayers in preparation and filing of the returns.
A tax payer will have to pay Rs 250 to avail services of TRPs. ‘Tax kiosks’ will be functional in certain residential areas on July 22 and in certain offices on July 24 and 25. Currently, income of Rs 2-5 lakh attracts 10 per cent tax, Rs 5-10 lakh 20 per cent and above Rs 10 lakh, 30 per cent.
Source: The Times Of India