IF YOU were feeling pleased at the introduction of the new provision of non filing of the tax returns for those with an income of less than Rs 5,00,000, then this joy could be short lived. There are so many conditions related to the entire process that it is likely that several people could find themselves being ineligible for this process and hence they would have to end up doing the same normal tax return filing that they have been undertaking each year. Here are some conditions related to this process which will hamper the individuals Two heads: The income to be eligible for the benefit of not having to file an income tax return has to be under just two heads. One of them is salaries and the other is income from other sources in the form of interest income from savings bank account. This is a big restriction because of the fact that just having some other income under a third head or even interest from a fixed deposit will ensure ineligibility from the process.
Having some investments which generate capital gains or even if there is a house property that has been bought with the help of a loan can create problems. The restriction of interest income earned from only savings bank account is especially harsh and this will take people out of the ambit.
Amount: Another thing that has to be considered is the monetary limits for the purpose of being able to file this kind of return. One of them is that the total in come has to be Rs 5,00,000 or less. This will be the income after considering the deductions that are available to the individual. This has to be considered for both the heads, so, even if the total for the salaries is lower but due to the interest income the figure crosses the limit then it will not be eligible.
Secondly, even in case of the interest part, there is a sub limit of Rs 10,000.
This means that even if the total income is less than Rs 5,00,000 but the interest income from savings bank account exceeds this figure then the benefit cannot be taken.
Form 16: The employee who is looking towards taking this benefit needs to ensure that there is a Form 16 that is received from the employer. Mention of the permanent account number and the tax that has been deducted along with its payment to the government has to mentioned in the form.
No refund: What is also important is that the employer has to ensure that the exact amount of tax is paid to the government. However, there can be a situation where there are some reason why there is a small refund that has to be due to the individual. So, presence of the refund will automatically ensure that the benefit of the no filing process cannot be taken by the individual.
One employer: As if, all these conditions were not enough, there is one more thing that needs to be ensured in the entire process.
If the employee has changed his job then the non filing of the tax return will not apply because of the fact that this will be possible only when there is a single employer during the entire year. This is another of the condition that is likely to be violated especially as there are large scale job changes that are taking place in the economy and hence a lot of people will not be able to take the benefit of the position.
