The Central Board of Direct Taxes(CBDT) has exempted certain segments of taxpayers from filing tax returns. However, there are certain conditions attached in order to be eligible for the exemption. So, before deciding on not filing the income tax returns, you need to be aware of the conditions. You may also be required to file the income tax returns, even the income is less than Rs. 5 lakh. According to the amendment, salaried individual with a taxable income of less than Rs. 5 lakh will not have to file income tax returns in the current assessment year. As such, individuals with a total taxable salary income of less than Rs. 5 lakh & bank interest upto As. 10,000/-. in the financial year after allowing all deductions, will be exemption filing tax returns.
Single employer :
It is to be noted that the entire income of an individual must accrue from a single employer. In case an individual has changed jobs or worked in two or more companies, he will have to file the IT returns even his total salary income is below As. 5 lakhs during the year.
Salary only source of income:
An employee will be required to declare his permanent account number (PAN) to his employer and obtain a certificate of tax.
No interest income over Rs. 10,000 from Savings Account:
Another condition is the earnings from interest. In case a person has interest income of more than Rs.10,000 from his savings deposits, he cannot claim exemption from filing returns. However, in case he has interest income of less than As. 10,000, he will be eligible for the exemption.
Not applicable in case of loss claim:
In/case one has incurred some losses or has carried forward losses of any period year, under any year, he will be required to file his returns before the due de. He cannot claim exemption. Else he will forfeit the right to carry forward the losses. So, 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 covered under the scheme. One should check these conditions first and then take the decision of not filing returns.
Not applicable in case of refund claim:
In case an individual wants to claim a refund, he will have to file the returns. There is no escaping from filing returns in case one has paid excess tax and wishes to claim a refund. The exemption will not be applicable in cases where notices are issued for filing the income tax returns uts 142(1), Section 148, Sec. 153A or Sec.153C of the Income Tax Act. |
