Fintotal News Analysis | Earn less than Rs 5 lakhs? Don’t file I-T returns
Earn less than Rs 5 lakhs? Don’t file I-T returns
Ruby Jacob, 30 Jul 2012

 In a major relief for a good population of tax payers, government's Central Board of Direct Taxes (CBDT) issued notification earlier this year exempting salaried employees whose annual income is less than Rs 5 lakhs from filing the mandatory income tax returns for the assessment year 2012-13.

The exemption is valid for employees satisfying the following conditions:

1. Only sources of income are salary income and income from savings bank account. Interest received from savings bank account should not have exceeding Rs 10,000 a year.

2. Total income after accounting for all deductions under chapter VI A (covering sections 80 C, 80 D, 80 E and 80 G) does not exceed Rs 5 lakhs.

3.  Income from savings bank account and PAN should have been reported to the employer and have received form 16 from employer. Salary should have been receiver from only one employer.

4. Employer should have paid TDS of the employee.

If you wish to claim tax refund, you obviously need to file returns. In addition if you have received notice from the Income Tax department for filing returns you would not be exempted.

For all others who earn over Rs 5 lakhs annually or have other sources of income such as rent, interest from bonds and capital gains, it is mandatory to file income tax returns. If you qualify for the exemption, go ahead and relax. This time let the HRs slog it out. But if you need to apply for a loan better file your returns because many lenders require last 3 years I-T returns proof for documentation.

Read Who Should File I-T Returns in 2013

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