Income up to Rs 5 lakhs? You have to file IT return…

Last year central board of direct taxes (CBDT) has announced an exemption for filling the income tax returns if your income is below Rs. 5 lacs. But, it came with the lots of restrictions which makes it is almost impossible for the tax payer to use the exemption. The condition is that if you are earning only the salary and interest income for your amount then you need not file the IT returns. You have to submit the interest earned on savings bank account to your employer, they will deduct the taxes. It is very unlikely that people don’t invest on any other areas like Fixed Deposits, Corporate Bonds, etc. However I have pointed out the conditions to meet the exemption to avoid filing the IT returns.

1. The total income should not exceed Rs. 500000
2. The income should be only from salaries and salary account interest.
3. The interest earned on bank account should not exceed Rs. 10000
4. The bank interest must be reported to employer and tax must be deducted from your salary.
5. Permanent Account Number (PAN) must be notified to the employer.
6. Form 16 from employer must say the PAN, income and TDS details.
7. No more tax should be payable by the tax payer.
8. There should not be any refund claim in the year.
9. The tax payer should have received salary from only one employer.

If you want to satisfy all the above conditions, it is very unlikely to happen. We should hope that in this year budget there should be more relaxation to avail this benefit.

Subscribe to our future articles here.