By CA Manoj Kohli 22nd Feb.,2012 : Millions of salaried taxpayers will continue to enjoy a procedural relief of not having to file their income-tax returns even for the current financial year (2011-12). The Central Board of Direct Taxes (CBDT) has specified that individuals with total income of up to Rs 5 lakh in a financial year and comprising only incomes under the head ‘salaries’ and ‘income from other sources’ would be exempt from filing their income-tax returns for assessment year 2012-13 (financial year 2011-12).
‘Income from other sources’ should only be by way of interest from a savings account in a bank, not exceeding Rs 10,000, according to CBDT. To get exemption from filing of tax returns, an individual must report his PAN (permanent account number) and the entire income from bank interest to his employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No 16. Persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims will not be entitled to the exemption from filing tax returns.
The exemption from filing of tax returns would not be available where notices are issued to the individual for filing of income tax return under certain specified sections. The CBDT had, in June last year, extended a similar exemption from filing of tax returns for salaried taxpayers with total income of up to Rs 5 lakh with regard to the financial year 2010-11