Bangalore: It's good news round the corner as the individuals with an annual income of up to 5 lakh are now spared from filing return for the current financial year.
This respite was wished-for in the Union Budget last year. Though, a circular from the Central Board of Direct Taxes (CBDT) last week indicates that this relief has been extended for this financial year.
A person can now file tax returns for this financial year by July 31, 2012. Still, the exemption comes with some terms and conditions, which agrees on the eligibility of an individual to seek the exemption from filing returns.
According to the Notification, only person who convince the following conditions are qualified for exemption from furnishing the tax return for the tax year 2011-12: They should have a total income does not exceed Rs 5, 00,000 and their total income consists only of income if 'Income from other sources' by way of interest, not exceeding Rs 10,000, from a savings bank account.
Besides that a person should also complete 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 should provides tax withholding certificate (Form 16) to employee that talks about 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, there should be no refund claim for the relevant tax year and the employee should receive salary from only one employer for the tax year.
Amarpal Chadha, tax partner, Ernst & Young said, "Besides these conditions, an individual should remember that the exemption under this notification is limited to voluntary filing of tax return and does not apply to tax return to be furnished in response to notice issued by the tax authority for regular assessment or reassessment or assessment pursuant to search/ survey proceedings."
This respite was wished-for in the Union Budget last year. Though, a circular from the Central Board of Direct Taxes (CBDT) last week indicates that this relief has been extended for this financial year.
A person can now file tax returns for this financial year by July 31, 2012. Still, the exemption comes with some terms and conditions, which agrees on the eligibility of an individual to seek the exemption from filing returns.
According to the Notification, only person who convince the following conditions are qualified for exemption from furnishing the tax return for the tax year 2011-12: They should have a total income does not exceed Rs 5, 00,000 and their total income consists only of income if 'Income from other sources' by way of interest, not exceeding Rs 10,000, from a savings bank account.
Besides that a person should also complete 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 should provides tax withholding certificate (Form 16) to employee that talks about 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, there should be no refund claim for the relevant tax year and the employee should receive salary from only one employer for the tax year.
Amarpal Chadha, tax partner, Ernst & Young said, "Besides these conditions, an individual should remember that the exemption under this notification is limited to voluntary filing of tax return and does not apply to tax return to be furnished in response to notice issued by the tax authority for regular assessment or reassessment or assessment pursuant to search/ survey proceedings."
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