Salary Up to 5 Lakh? Then No Need to File Returns


Who are not Eligible for this Exemption

Under these notifications an individual cannot claim an exemption to file the tax return. The individual has to have a total income under any head other than 'Salaries' and 'Income from other sources'.

The individual has total income exceeding Rs 5,00,000 for tax year 2011-12, the PAN card has to be submitted to his employer, the individual has interest income apart from savings bank account interest income, the individual has not reported interest income from savings bank account to his employer and discharged his tax liability by way of advance tax or self assessment tax, the person has refund claim in the return of income, the individual has received salary income from more than one employer.

Vineet Agarwal, director, tax and regulatory services at KPMG said, "Similarly, a person cannot claim benefit of non filing of tax return under this notification where he is required to file the same by a notice issued by the tax authorities." Agarwal on the other hand said, "The withholding tax certificate (Form 16) issued by the employer to the employee which mentions the PAN, details of income and taxes withheld would be treated as proof for payment of taxes."