Individuals with annual income up to Rs 5 lakh are now exempted from filing personal income tax return for the current financial year. This relief was proposed in the Union Budget last year. However, a circular from the Central Board of Direct Taxes (CBDT) last week indicates that this relief has been extended for this financial year.
An individual can now file tax returns for this financial year byJuly 31, 2012 . However, the exemption comes with some terms and conditions, which determine the eligibility of an individual to seek the exemption from filing returns.
Who can seek this exemption
As per the Notification, only individuals who satisfy the following conditions are eligible for exemption from furnishing the tax return for the tax year 2011-12:
a) Total income does not exceed Rs 5,00,000.
b) Total income consists only of income under the following heads:
Salaries
'Income from other sources' by way of interest, not exceeding Rs 10,000, from a savings bank account
Avail an exemption
Apart from the above conditions, an individual should also fulfill the following conditions to avail an exemption from furnishing tax return with the authorities:
Report his Permanent Account Number (PAN) to his/her employer
Report savings bank account interest income to employer and the employer should withhold tax on such interest income
Employer provides tax withholding certificate (Form 16) to employee which mentions the PAN, details of income and taxes withheld
There should be no further tax payable by the employee by way of advance tax or self-assessment tax
No refund claim for the relevant tax year
The employee should receive salary from only one employer for the tax year
Who are not eligible for this exemption
An individual cannot claim an exemption to file the tax return under this notification in the following cases:
The individual has total income under any head other than 'Salaries' and 'Income from other sources'
The individual has total income exceeding Rs 5,00,000 for tax year 2011-12
The individual has not submitted his PAN to his employer
The individual has interest income other than savings bank account interest income
The individual has not reported interest income from savings bank account to his employer and discharged his tax liability by way of advance tax or self assessment tax
The individual has refund claim in the return of income
The individual has received salary income from more than one employer
An individual can now file tax returns for this financial year by
Who can seek this exemption
As per the Notification, only individuals who satisfy the following conditions are eligible for exemption from furnishing the tax return for the tax year 2011-12:
a) Total income does not exceed Rs 5,00,000.
b) Total income consists only of income under the following heads:
Salaries
'Income from other sources' by way of interest, not exceeding Rs 10,000, from a savings bank account
Avail an exemption
Apart from the above conditions, an individual should also fulfill the following conditions to avail an exemption from furnishing tax return with the authorities:
Report his Permanent Account Number (PAN) to his/her employer
Report savings bank account interest income to employer and the employer should withhold tax on such interest income
Employer provides tax withholding certificate (Form 16) to employee which mentions the PAN, details of income and taxes withheld
There should be no further tax payable by the employee by way of advance tax or self-assessment tax
No refund claim for the relevant tax year
The employee should receive salary from only one employer for the tax year
Who are not eligible for this exemption
An individual cannot claim an exemption to file the tax return under this notification in the following cases:
The individual has total income under any head other than 'Salaries' and 'Income from other sources'
The individual has total income exceeding Rs 5,00,000 for tax year 2011-12
The individual has not submitted his PAN to his employer
The individual has interest income other than savings bank account interest income
The individual has not reported interest income from savings bank account to his employer and discharged his tax liability by way of advance tax or self assessment tax
The individual has refund claim in the return of income
The individual has received salary income from more than one employer
Source:-The Economic Times
