07-Jun-2011
Source : Moneycontrol.com
As many as 85 lakh salaried tax payers whose taxable income, including salary and interest income, is up to Rs 5 lakh, are not required to file income-tax return from now onwards.
"No income-tax returns is required for salaried persons whose annual annual taxable income including salary and interest is up to Rs 5 lakh. We would shortly notify this," a Central Board of Direct Taxes official said.
However, he said this would not cover income from other sources like house property, capital gains and gains from profession and business. The scheme would be applicable from assessment year 2011-12 onwards. This means that the salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year).
Under the scheme, those salaried persons who want to claim tax refund, would have have to income tax file return. As per the Memorandum to the Finance Bill 2011, the government will be issuing a notification exempting ’classes of persons’ from the requirement of furnishing income tax returns.
Under the scheme, the salaried person wants exemption from filing IT return, has to disclose about the incomes like dividend and interest to his employer for tax deduction.
In the scenario, the Form 16 issued to salaried employees will be treated as Income Tax Return. At present, it is obligatory for all salaried persons to file income tax return under the Income Tax Act, 1961.
The idea behind the move is that in cases where there are no other sources of income, filing of a return is a duplication of existing information.
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Showing posts with label Income Tax. Show all posts
Showing posts with label Income Tax. Show all posts
Friday, June 10, 2011
Tuesday, February 1, 2011
Govt may enhance I-T exemption limit in coming Budget
The government may advance by a year the roll out of some of the income tax measures proposed in the Direct Taxes Code (DTC) to provide relief to inflation-hit households.
These measures may form part of the forthcoming budget. "Some measures in the code could be advanced," a senior government official said on condition of anonymity. The DTC is expected to come into force from April 2012.
The thinking within the finance ministry is that some relief should be provided to common households in view of the high inflation by raising the personal income tax exemption limit, the official said.
Under the current rules, income up to 1.6 lakh is exempt from tax for individuals. For women and senior citizens, the limit is 1.9 lakh and 2.4 lakh, respectively. The DTC Bill was introduced in Parliament last year. It proposes an I-T exemption limit of 2 lakh.
The budget for the ongoing fiscal year had not raised the basic exemption limit and the one for the previous year had increased it only by 10,000.
The plan to advance some of the DTC proposals comes as the government battles mounting price pressures at home. India’s food inflation has remained in double-digits for most of the past year and has played a key role in pushing up the headline inflation. Food inflation for December stood at 15.5%. The wholesale price index rose an annual 8.43% in the month. The finance minister could also recast the income tax slabs.
The DTC Bill has proposed changes in the slabs.
At present, income over 8 lakh attracts the highest slab of 30%. The Bill has proposed the 30% rate for income in excess of 10 lakh.
However, since the budget for the current year had sharply widened the tax slabs, it is likely the government may just go for an increase in the basic exemption limit without rearranging the slabs, according to some experts. A slab rearrangement helps taxpayers already under the tax net.
"A rise in the basic exemption limit would help people at the lower strata of society while widening of existing tax slabs will help people in low income groups already covered under the tax net," said Vikas Vasal, executive director at KPMG. Since the tax slabs were recast last year only, it would make sense to go for an increase in the exemption limit.
But some experts are of the view that fiscal constraints may restrain the government from giving away too much in the current year.
The fiscal responsibility framework proposed by the government seeks to cut the fiscal deficit to 4.8% in 2011-12 as against 5.5% budgeted in the current year.
The government also needs to set aside more for its flagship schemes, such as the Mahatma Gandhi National Rural Employment Guarantee Act and the Food Security Act. Moreover, unlike the current year when the government had a 1 lakh crore bonanza from the sale of 3G and broadband spectrum, in the next fiscal it would have to rely mostly on borrowings and tax collections to fund its expenditure.
These measures may form part of the forthcoming budget. "Some measures in the code could be advanced," a senior government official said on condition of anonymity. The DTC is expected to come into force from April 2012.
The thinking within the finance ministry is that some relief should be provided to common households in view of the high inflation by raising the personal income tax exemption limit, the official said.
Under the current rules, income up to 1.6 lakh is exempt from tax for individuals. For women and senior citizens, the limit is 1.9 lakh and 2.4 lakh, respectively. The DTC Bill was introduced in Parliament last year. It proposes an I-T exemption limit of 2 lakh.
The budget for the ongoing fiscal year had not raised the basic exemption limit and the one for the previous year had increased it only by 10,000.
The plan to advance some of the DTC proposals comes as the government battles mounting price pressures at home. India’s food inflation has remained in double-digits for most of the past year and has played a key role in pushing up the headline inflation. Food inflation for December stood at 15.5%. The wholesale price index rose an annual 8.43% in the month. The finance minister could also recast the income tax slabs.
The DTC Bill has proposed changes in the slabs.
At present, income over 8 lakh attracts the highest slab of 30%. The Bill has proposed the 30% rate for income in excess of 10 lakh.
However, since the budget for the current year had sharply widened the tax slabs, it is likely the government may just go for an increase in the basic exemption limit without rearranging the slabs, according to some experts. A slab rearrangement helps taxpayers already under the tax net.
"A rise in the basic exemption limit would help people at the lower strata of society while widening of existing tax slabs will help people in low income groups already covered under the tax net," said Vikas Vasal, executive director at KPMG. Since the tax slabs were recast last year only, it would make sense to go for an increase in the exemption limit.
But some experts are of the view that fiscal constraints may restrain the government from giving away too much in the current year.
The fiscal responsibility framework proposed by the government seeks to cut the fiscal deficit to 4.8% in 2011-12 as against 5.5% budgeted in the current year.
The government also needs to set aside more for its flagship schemes, such as the Mahatma Gandhi National Rural Employment Guarantee Act and the Food Security Act. Moreover, unlike the current year when the government had a 1 lakh crore bonanza from the sale of 3G and broadband spectrum, in the next fiscal it would have to rely mostly on borrowings and tax collections to fund its expenditure.
Wednesday, January 19, 2011
I.T Department may spare Salaried class from filing Returns
The Income Tax department is considering a proposal to do away with filing of Income Tax Returns by salaried employees. The proposal if approved will off-load considerable work out of Income Tax offices as well as for salaried people. The rationale behind such a proposal is 2-fold:
The I-T department has opened a Central Processing Centre in Bengaluru for faster processing of claims for electronically-filed returns.It will roll out three more centres in the Manesar, Pune and Kolkata.
- Salaried people do not have any other sources of income apart from Savings Bank interest component, which is anyways very less & I personally doubt if any one declares the same.
- The records of their income are anyways available with the employers & banks!
The I-T department has opened a Central Processing Centre in Bengaluru for faster processing of claims for electronically-filed returns.It will roll out three more centres in the Manesar, Pune and Kolkata.
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