Exemption from filing of Income Tax Return

Saturday, May 25, 2013 | comments

What is the purpose of this notification and who are proposed to be exempted  from the requirement of filing of the return? 

                  The primary objective of this notification is to exempt those salaried taxpayers  from the requirement of filing income-tax returns, who have (i) total income not  exceeding Rs.5,00,000, and (ii) the total income consists only of income  chargeable to income tax under the head Salaries and interest income from  savings bank account if such interest income does not exceed Rs.10,000. 

Further, such salaried taxpayer would be eligible for exemption from filing a  return of income only if tax liability has been discharged by the employer by way  of Tax Deducted at Source (TDS) and the deposit of the same to the credit of the  Central Government. For this purpose, taxpayer has to intimate his interest 
income to the employer during the course of the year. 

For Example – (i) If an individual has salary income of Rs.4,90,000 and interest income  from savings bank account not exceeding Rs.10,000 (which has been reported to the  employer and tax has been deducted thereon), then the taxpayer would be exempt from  the requirement of filing income-tax returns since the total income from both the above  sources does not exceed five lakh rupees. 

(ii) A taxpayer having salary income of Rs.4,98,000 and interest income from savings  bank account of Rs.2,000 (which has been reported to the employer and tax has been  deducted thereon), would also be eligible under this Scheme. 

(iii) A taxpayer having salary income upto Rs.5,00,000 and nil interest income would  also be eligible under this Scheme. 

(iv) A taxpayer having salary income of Rs.5,50,000, interest income from savings bank  account of Rs.8,000(which has been reported to the employer and tax has been deducted thereon), and who has claimed deduction of Rs.70,000 under section 80C (on account of  certain payments/investments/savings) would also be eligible under the Scheme. 

(v) A taxpayer having salary income of Rs.6,10,000, interest income from savings bank  account of Rs.10,000 (which has been reported to the employer and tax has been deducted  thereon), and who has claimed deduction of Rs.1,00,000 under section 80C (on account of  certain payments/investments/savings), a deduction of Rs.20,000 under 80CCF  (Infrastructure Bonds) and a further deduction of Rs.15,000 under section 80D (Health Insurance Premium) would also be eligible under the Scheme. 
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