You must have read that the salaried people should not file income tax return from the financial year 2010-11 (Assessment Year 2011-10) onwards only if their total income is below 5 Lakh. The information is correct and the Union finance minister announced this and it is already come into force from this assessment year onwards. (The notification is awaited) But there are certain conditions to be fulfilled to get this benefit. This article will help you to find whether you are qualified to get this benefit.
But before that you must be aware that most salaried people those who have an income less than 5 lakh could not avail the benefit of the not submitting Income Tax return.
If you have only salary and interest as income for the financial year and the total income is less than 5 lakh you should not submit income tax return. But you must report this interest income to your employer and allow him to deduct tax accordingly and let him show this interest also in TDS certificate (Form No. 16). Then you can get exemption of submitting Income Tax Return. The Form 16 will consider as your Income Tax return.
If you have an income from house property you could not attain this benefit.
If you have a home loan the interest paid for the repayment of home loan will be considerd as a loss under the head income from house property. So you have to submit income tax return even if your total income is less than 5 Lakh.
If you have any profit or loss from stocks, mutual funds etc, it will come under the head capital gain and you have to submit income tax return.
If you have to claim any income tax refund you must submit income tax return.
So be aware that most salaried person has income from mutual funds, shares, rent or have housing loan should file income tax return. So most salaried people will not get this benefit.
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I am a Haryana Govt. Employee having salary less than Rs. 5.00 Laks during F.Y/2010-11 and ncessary TDS has been duducted from my pay. But I have an F.D. in a bank & TDS.on interest has also been decucted by the bank and Form 16 has been given by the bank. Now filling the return is necessary for me.Pl. explain.
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MY GROSS SALARY INCOME IS Rs 595000.00 and after deduction of Rs 100000.00 U/S 80-C
MY NET INCOME IS 495000.00 NOW PLEASE TELL I HAV E TO FILE THE ITR OR NOT
If you have any other income including interest on Savings Bank account (if you are not disclosed the interest on savings bank account to the employer) you should submit income tax return. Next year if you have only interest on SB account as income other than salary, disclose the interest amount to your employer and let him deduct the TDS for interest also, you can escape from filing return.
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