Income Tax

Salary up to Rs.5 lakh a yr? No need to file income-tax returns

The finance ministry on Friday exempted salaried employees who earned up to R5 lakh in the financial year 2011-12 from filing returns, subject to the condition that they had no other income during the period and that their interest earnings were not more than R10,000. The decision was announced by former finance minister Pranab Mukherjee in his 2011-12 Budget speech. The idea is that the tax liability of small tax payers will be discharged by their employers. CBDT said R5 lakh threshold is applicable on the gross total income after the allowable deductions under chapter Chapter VIA. To get the benefit of not filing returns, the employee needs to have reported to the employer his PAN as well as his income from interest on savings bank account. The employee should also have received Form 16 from their employer, while the employer is required to have paid off his total tax liability to the government by way of deduction at source.