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No I-T Returns On Income Up To Rs 5 Lakh

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The Indian government on Thursday said the tax payers whose annual income comprising salary and interest is up to Rs 5 lakh, are not required to file income-tax return from now onwards, a move which would benefit about 85 lakh assesses.

The scheme would cover those salaried persons whose interest income per annum is up to Rs 10,000, Central Board of Direct Taxes (CBDT) said.

"The CBDT has notified the scheme exempting salaried taxpayers with total income up to Rs 5 lakh from filing income tax return for assessment year 2011-12, which will be due on July 31, 2011," Central Board of Direct Taxes Prakash Chandra told reporters in New Delhi.

Chandra further said, "Individuals having total income up to Rs 5,00,000 for 2010-11, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account up to Rs 10,000 are not required to file their income tax return."

This scheme would not be applicable to individuals who have got salary from two or more than two employers in a financial year. This happens in case a person changes the job.

Giving more details about the scheme, Chandra said, "Such individuals must report their Permanent Account Number (PAN) and the entire income from bank interest to their employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No 16."

The scheme would not cover those tax payers who have income from sources other than salary and interest income from a savings bank account, or having refund claims.