Employees earning up to Rs.5 lakh annually exempt from filing tax return

July 20th, 2012 - 6:18 pm ICT by IANS  

New Delhi, July 20 (IANS) Employees with annual income up to Rs.5 lakh are not required to file tax return from the assessment year 2012-13, if there is no other income and his/her salary is from one employer, the finance ministry said Friday.

The Central Board of Direct Taxes (CBDT) had issued the notification in this regard in February this year.

The new rule is applicable for the assessment year 2012-13, for which the last date for filing of income tax return is July 31, 2012.

The finance ministry said the tax payers will be eligible for this exemption only if they fulfil certain conditions.

Only those employees will be exempted from filing returns who have reported to the employer their permanent account number (PAN) and income, if any, from interest on savings bank account and received Form 16 from the employer.

Employees must have earned only salary income and income from savings bank account with the annual interest earned from savings bank account being less than Rs.10,000 and the total Income of the employee not exceeding Rs.5 lakh (total income means gross total income less deductions).

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