Skip to main content

Exemption from filing IT returns

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.

 

Popular posts from this blog

Franklin India High Growth Companies Fund

Franklin India High Growth Companies Fund Online One of the key developments that the Street is keenly waiting for is a cut in interest rates by Reserve Bank of India . With demand rising gradually, a rate cut is expected to boost earnings growth for companies. In such a situation, schemes which invest in high growth companies are best suited, especially when seen from a long-term perspective. One such scheme is Franklin India High Growth Companies Fund. Fund managers Anand Radhakrishnan, Roshi Jain and Srikesh Nair strictly follow valuation parameters when it comes to choosing stocks.Valuation parameters, such as enterprise value, price-to-earnings growth ratio, forward price-to-sales ratio and discounted earnings per share, play a critical role in selecting companies for investments. Taking into account these parameters, the fund managers invest in companies which are poised for high growth in their respective sectors. This approach has been in favour of the scheme and it has perform...

Avoid NFOs

  Don't get taken in by the flurry of new fund offers. You will be better off sticking to the tried and tested schemes.   For the past one year, to cash in on the bull run in equities, mutual fund houses have gone on a new fund offer (NFO) overdrive. But experts are unanimous in their advice: avoid NFOs . While past performance is not an indicator of how a fund will fare in the future, it does tell the investor how skilful the fund manager is. This crucial information is missing in an NFO. Not only is there no track record to judge an NFO by, many NFOs are similar to funds that already exist. If the new fund is similar to existing funds, you are better off investing in the latter. Around 67% of the new launches in 2014 were closed-end products. Investing in the NFO of a closed-end fund is doubly risky. In case the fund's performance is lacklustre, a closed-end fund does not allow you to exit. Even though closed-end funds are listed on the stock...

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...

L&T Income Opportunities Fund dividend

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 L&T Income Opportunities Fund declares L&T Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( R /unit) L&T Gilt Investment-DQ 0.3 L&T Gilt Investment Direct-DQ 0.3 L&T Income Opportunities Ret-DQ 0.31 L&T MIP-Wealth Builder-DQ 0.3 L&T MIP-Wealth Builder Direct-DQ 0.3 L&T MIP-DQ 0.3 L&T MIP Direct-DQ 0.3 L&T Short Term Opp-DQ 0.26 L&T Short Term Opp Di...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now