A good news for all salaried class personnel because they will need not file income tax if their income is less than Rs. 5 Lakh a year and is applicable wef income tax returns for assessment year ending 2012 or current financial year (2010-2011).This has been done with an aim to simplify Indian taxation processes for past couple of years now and same was announced through Direct Tax Code bill, however same was officially announced yesterday.
Advantages
(a) 85 lakh Indian citizens (who earn less than Rs. 5 Lakh p.a) life made easier.
Disadvantages
(a) Not applicable to people who do not have any income from any other sources like trading in stocks, investing in mutual funds or earning money from real estate property etc.
(b) If you want to claim Tax refunds – you will have to file taxes. How it will work for Salaried Employee Essentially, Employees who are eligible under this scheme for filing tax returns will have to disclose their earnings (other than salary, like interest, dividends) to his / her employer. The Form 16 which is issued at the end of the year will then be treated as Employees Income Tax Return itself. In India majority of employees earn less than Rs. 5 Lakh salary, but most of them have other sources of income as well. So, it will be interesting to see how many of them actually avail this facility of “No Income Tax Return Filing”.
Conclusion
Better Late than never and we hope to see this limit being increased to higher levels because the amount of effort which is saved in squeezing the salaried class can be used to unearth the black money and get on to the big fishes which will yield more returns than running after the salaried class. Not to forget the Defence forces are also doing a commendable task and they should be also completely exempted from the filing of the income tax irrespective of their income as unlike others they have to file income tax at a particular specified city only and it must be very difficult for them to get the filing or refund considering their nature of duty in the interest of the nation. Do remember to check out income tax updates and save money as money saved is money earned.
Tagged with
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
