Wednesday, 16 March 2011

No I T Scrutiny-Senior Citizen, Low Income

No Income Tax Scrutiny for senior citizens  and small tax payers with an income below Rs. 10 Lakh from the financial year 2011-12. The Central Board of Direct Taxes released a press release on 14th March, 2011 that there will not be any scrutiny of income tax for senior citizen those who have completed the age of 60 years and for small tax payers those who have a gross taxable (Income before availing any deduction) income is less than 10 lakh per year, unless otherwise there is no any reliable information against them. This is applicable for individuals and HUF.

This decision will come into force from the financial year 2011 - 12 onwards. The press release says that those who are filing income tax return in ITR-1 and ITR-2 may be exempted from scrutiny. Really the security makes much difficulty for the tax payers and the press release is important that the budget 2011 decreased the age limit of senior citizen from 65 to 60 years and also allowed nil tax limit is up to  Rs. 250000 from Rs. 240000 and also exempted to file return for salaried employees who have the total income is less than Rs. 500000 (only if the whole income is come under TDS procedure)

We appreciate this decision and this will reduce the work load of employees in the department of direct taxes and also avoid the difficulties of small tax payers.

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3 comments :

  1. [...] from the Assessment Year 2011-10 ( ie from the Financial year 2010-11). This was according to his budget proposal on the end of February, 2011 and it was not clear that the implementation of this proposal will be [...]

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  2. Panchanan Saha14 July 2011 at 20:12

    My annual income from pension and interest from bank deposit and post office deposit is less than Rs.250,000.00 . I am 78 years old. Do I require submission of tax return like last year?

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  3. If you have only Rs. 250000 and you are a senior citizen you should not pay tax for the first 240000 and the remaining amount is taxable. What about your pension. TDS might not be deducted from your pension. So you have to pay tax and should submit return for the financial year 2010-11. (if you have not done any tax saving to cover the remaining amount.)

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