No tax return for salary and interest income up to Rs 5 lakh

New Delhi, Jun 6 (PTI) In India, as many as 85 lakh
salaried tax payers whose taxable income, including salary and
interest income, is up to Rs 5 lakh, are not required to file
income-tax return from now onwards.
"No income-tax returns is required for salaried persons
whose annual annual taxable income including salary and
interest is up to Rs 5 lakh. We would shortly notify this," a
Central Board of Direct Taxes official said.
However, he said this would not cover income from other
sources like house property, capital gains and gains from
profession and business.
The scheme would be applicable from assessment year
2011-12 onwards. This means that the salaried persons eligible
under the scheme would not have to file returns for the
financial year 2010-11 in 2011-12 (assessment year).
Under the scheme, those salaried persons who want to
claim tax refund, would have to file income tax return.
As per the Memorandum to the Finance Bill 2011, the
government will be issuing a notification exempting
'classes of persons' from the requirement of furnishing income
tax returns.
Under the scheme, the salaried person wants exemption
from filing IT return, has to disclose about the incomes like
dividend and interest to his employer for tax deduction.
In the scenario, the Form 16 issued to salaried employees
will be treated as Income Tax Return. At present, it is
obligatory for all salaried persons to file income tax return
under the Income Tax Act, 1961.
The idea behind the move is that in cases where there are
no other sources of income, filing of a return is a
duplication of existing information.