It's time to file your income tax returns for the year 2010-11. In the current year, the Central Board of Direct Taxes (CBDT) has exempted certain segments of taxpayers from filing tax returns. However, there are certain conditions attached in order to be eligible for the exemption. So, before deciding on not filing the income tax returns, you need to be aware of the conditions. You may also be required to file the income tax returns, even if the income is less than Rs 5 lakhs.
According to the amendment, salaried individuals with a taxable income of less than Rs 5 lakhs will not have to file income tax returns in the current assessment year. The finance ministry has issued a notification to this effect. This was announced by the finance minister in the Union Budget speech for 2011-12. As such, individuals with a total taxable salary income of less than Rs 5 lakhs in the financial year 2010-11, after allowing all deductions, will be exempt from filing tax returns this year.
Some conditions to be met:
Salary only source of income
An employee will be required to declare his permanent account number (PAN) to his employer and obtain a certificate of tax deductions in Form No 16. Another condition is that an individual should not have any income from sources other than his salary. He should have earned income only in the form of salary and savings bank interest.
So, if you have income from fixed deposits, mutual funds, shares, property etc, you will be required to file the returns.
Single employer
It is to be noted that the entire income of an individual must accrue from a single employer. In case an individual has changed jobs or worked in two or more jobs, he will have to file the IT returns even if his total salary income is below Rs 5 lakhs during the year.
No interest income over Rs 10K
Another condition is the earnings from interest. In case a person has interest income of more than Rs 10,000 from his savings deposits, he cannot claim the exemption from filing returns. However, in case he has interest income of less than Rs 10,000, he will need to declare it to his employer and have the tax deducted, so as to be eligible for the exemption.
Not applicable in case of refund claim
In case an individual wants to claim a refund, he will have to file the returns. There is no escaping from filing returns in case one has paid excess tax and wishes to claim a refund. The exemption will not be applicable in cases where notices are issued for filing the income tax returns under Section 142(1), Section 148, Section 153A or Section 153C of the Income Tax Act.
Not applicable in case of loss claim
In case one has incurred some losses or has carried forward losses of any prior year, under any year, he will be required to file his returns before the due date. He cannot claim exemption. Else he will forfeit the right to carry forward the losses.
So, persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims will not be covered under the scheme. One should check these conditions first and then take the decision of not filing returns.
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Also, know how to buy mutual funds online:
1) DSP BlackRock Mutual Funds:
http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html
2) Reliance Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html
3) Sundaram Mutual Funds:
http://prajnacapital.blogspot.com/2011/07/buying-sundaram-mutual-funds-online.html
4) Birla Sunlife Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-birla-sunlife-mutual-funds.html
5) UTI Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-uti-mutual-funds-online.html
6) SBI Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-sbi-mutual-funds-online.html
7) Edelweiss Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-edelweiss-mutual-funds-online.html
8) IDFC Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-idfc-mutual-funds-online.html
