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Salaried Taxpayers Exempt From Filing Income Tax Return
The Central Board of Direct Taxes ("CBDT") recently issued a notification exempting specified class of salaried tax payers from the requirement of furnishing a return of income for the FY 2010-11, subject to certain conditions. The CBDT then issued another similar notification for FY 2011-12. Taxand India reviews the salaried taxpayers that this applies to and the conditions that will need to be met to benefit.
This notification is a replica of the earlier issued notification, which was in relation to FY 2010-11. Since the current notification has been issued well in time ie before the end of FY 2011-12 (unlike the previous notification which was issued in the month of June, 2011 after the close of FY 2010-11), the salaried taxpayers covered in the FY 2011-12 ambit of this notification have ample time to disclose their savings bank interest income to their employer's. This way the employer can deduct tax at source on such interest income and accordingly issue the withholding tax certificate to its employee. Accordingly, during the FY 2011-12 greater number of taxpayers may get covered under the exemption criteria and therefore derive the benefit from such scheme.
Lastly, it is pertinent to note that similar to FY 2010-11's stand the FY 2011-12 notification does not cover within its ambit individuals having taxable income from any other source except salary income and savings bank interest income (up to the prescribed limit).
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