Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: empanelment :: VAT RATES :: TDS :: cpt :: ACCOUNTING STANDARDS :: due date for vat payment
 
 
Indirect Tax »
 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016
 Tax department circular on indirect transfer put on hold
 Rising share of indirect taxes a step back to regressive era
 Double-digit Increase in Direct, Indirect Tax Collection, Says Arun Jaitley
 What is Direct tax?
 Indirect tax mop-up rate slows after note ban, Jaitley dismisses slowdown
 Tax buoyancy improves, thanks to indirect levy
 FM may unveil GST timeline, state compensation corpus on Feb 1
 Direct and indirect tax collection to exceed budget estimates this fiscal: Jaitley
 Startups brace up for legal war with Income Tax department
 Which investment is best suited for you to save tax

No tax filing for income below Rs 5 lakh? Conditions apply
September, 05th 2012

In a recent notification, salaried individuals with income less than Rs 5 lakh were exempted from filing income tax returns. However, there are certain conditions that such individuals need to fulfill to avail this exemption, Subhash Lakhotia, Tax and Investment Consultant clarifies in an interview with CNBC-TV18.

Lakhotia explained that if the employee has earned salary income as well as income from savings bank account, and the total interest of such savings bank account interest income does not exceed Rs 10,000, the employee need not file returns. Furthermore, the gross total income of the employees less deductions should not cross Rs 5 lakh. Third condition is that the employee has reported his Permanent Account Number to the employer. Many such conditions have to be fulfilled only then there arises no filing of IT returns.

What is also very important is that the employee has reported his income from interest on the savings bank account to the employer and the employer has deducted tax on this amount. Next condition is the employee has received Form 16 from the employer.

Now the most important point is total income tax liability of the employee on the salary income as well as on the savings bank account interest has been paid out by the employer by way of TDS then only the income tax return need not be filed. Finally, the employee has no refund claim and is employed only with one employer during the year. These are some of the very important pointers to be kept in mind. If one fulfills all these conditions then there is no need to file income tax return, otherwise income tax return needs to be filed.

Here is the edited transcript of the interview on CNBC-TV18.

Q: Anyone whose annual income is sub-Rs 5 lakh does not need to file for income tax returns, but is that something which you advise? For the longest time we were told that even if your income is nothing much to write home about you must file your returns, even if you are not paying tax. But the recent budget said that for income up to Rs 5 lakh, you don't have to file returns. Is it a good thing to file returns anyway or better not to file them?

A: The point is most of the viewers would like to see and get the answer that its better we dont file the returns. But let me take the viewers to the very important press release by the Government of India that came up towards the end of July. The government clearly said that salaried employees need not file their income tax returns in respect of the financial year 2011-12 relevant to the assessment year 2012-13, which is happy news, but please wait. Further, the circular and the guidelines said that only if the salaried employee has earned only salary income as well as income from savings bank account and total interest of such savings bank account interest income does not exceed Rs 10,000, the employee need not file returns.

The second important condition is that the total income of the employee does not exceed Rs 5 lakh. This means the gross total income of the employees less deductions should not cross Rs 5 lakh, only then one need not file the income tax return. Third condition is that the employee has reported his Permanent Account Number to the employer. Many other conditions have to be fulfilled only then there arises no filing of IT returns.

What is also very important is that the employee has reported his income from interest on the savings bank account to the employer and the employer has deducted tax on this amount. Next condition is the employee has received Form 16 from the employer. Now the most important point is total income tax liability of the employee on the salary income as well as on the savings bank account interest has been paid out by the employer by way of TDS then only the income tax return need not be filed. Finally, the employee has no refund claim and is employed only with one employer during the year. These are some of the very important pointers to be kept in mind. If one fulfills all these conditions then there is no need to file income tax return, otherwise income tax return needs to be filed.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions