In India, there are about 85 lakh Salaried Persons with Annual Income from Salary and other sources below Rs 5 Lakhs.It has been obligatory for all salaried persons to file income tax returns under the Income Tax Act, 1961.In cases where there are no other sources of income, filing of Income Tax Return is a duplication of existing information.
Now, according to a confirmed notification from the Indian Union Finance Ministry, an individual whose total income, chargeable to Income-Tax, for the relevant assessment year, consisting of income/s under ‘salaries’ and income from other sources, by way of interest from Bank Deposits (not exceeding Rs.10,000/-) does not exceed Rs.5 Lakhs, have been exempted from filing the Income Tax Returns from Assessment year 2012-13, if the person has received a Certificate of Tax Deductions in Form – 16 from the employer.
However, for claiming Tax Refunds, if any, Income Returns must be filed.
The following are the present Income Tax Rates:
- Rs.1.80 Lakhs To Rs 5 Lakhs- 10%,
- From Rs 5 Lakhs To Rs 8 Lakhs- 20 %,
- Above Rs.8 Lakhs- 30 %.
The Direct Taxes Code (DTC) Bill, presently being scrutinised by a Parliamentary panel, proposes to raise the tax exemption limit From Rs 1.80 Lakhs to Rs.2 Lakhs.