Relief for employees earning salary up to Rs. 5 Lakhs !

The Central Board of Direct Taxes has notified the scheme whereby the salaried taxpayers with total income up to Rs. 5 lakh need not file income tax return for assessment year 2011-12.

The Conditions are:

·        You should have income from salary and income from Bank interest only. Any other income or claim under any other head is not available. Means, even if you want to claim interest on housing loan, you will not be covered by the scheme.

·        Your total income (after all deductions including Sec 10 and Chapter VIA) should be Rs.5,00,000/- or less;

·        You can have interest income from Saving Bank Account up to Rs. 10,000/-. Please note if you are getting interest on FD, you are not covered under this scheme.

·        You should not be drawing salary from more than one employer

·        Your tax liability should have been paid by way of TDS

·        You should not have a refund

·        You should have reported your PAN and income from SB account to the employer

·        Employer should have issued a Form 16 to you.

The scheme shall also not be applicable in cases wherein notices are issued for filing the income tax return under section 142(1) or section 148 or section 153A or section 153C of the Income Tax Act 1961.

We have to wait and see how many of the assessees are benefited from this new Scheme, reading through the conditions.