Financial News:Income tax return not required for salary above Rs. 5 lakh a year

Starting this financial year, salaried employees earning up to Rs. 5
lakh a year no longer need to file income tax returns, the Finance
Ministry said today.

The exemption from filing I-T returns is applicable only if 'the total
income of the employee does not exceed Rs. 5 lakh ... (and) the annual
interest earned from savings bank account is less than Rs. 10,000' for
assessment year 2012-13.

Filing I-T returns is, however, necessary to claim refunds.

The last date for filing tax returns is July 31.

There are about 85 lakh salaried persons in the country whose yearly
income, including earnings from other sources like bank deposits, does
not exceed Rs. 5 lakh.

The exemption will be permitted only if the assessee has received a
certificate of tax deduction in Form 16 from the employer. The
employees have to report income from interest on savings bank account
to the employer to become eligible for exemptions.

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