Copies of tax return

The most significant factor is that a person hardly ever reports their savings account interest to their employer. Vaibhav Sankla, Director, H&R Block India, said, "Even for those who want to report the same to the employer, the difficulty arises from the fact that often the interest for the later part of the year is credited in the month of February or March. The majority employers freeze their payroll declarations as early as in the month of January."

Many small employers are unenthusiastic to agree to declaration of other income. The other aspect is, in spite of this notification, many banks still persist to ask for copies of tax return while processing loan applications. Sankla said, "Further, sometime tax return copies are required to be filed along with VISA applications. Keeping these in mind, the individual who is eligible to claim this exemption might still decide to file his return of income."