Individuals Earning below Rs.5 Lakhs Exempted from Filing Tax Returns

The Union budget for the year 2011-2012, had announced that the individuals having income less than Rs.5 lakh need not file the tax returns. According to the official information the Form 16 issued by the employer to the employee is considered as Income Tax Returns. In the cases where the individuals with the said salary limit have other sources of income, such as dividends, interest, etc. need to disclose such information to the employer for tax deductions. All the employees having more income than this limit are supposed to pay the tax, regardless of the TDS paid by his employers, as per the present IT rules. The Government is expected to release a notification, according to Memorandum of Financial Bill 2011, stating the classes of employees exempted from filing returns. This decision will come in to effect from 1st June 2011.

For general tax payers, the tax exemption limit got extended to Rs.1.80 lakh and for senior citizens it got extended up to Rs.2.5 lakh. The age limit of senior citizens is lowered from 65 to 60 years, with the addition of a new category called “very senior citizens”, with 80 years and above age, who are not required to pay tax up to income limit of Rs.5 lakh. The general tax payers have a uniform tax relief of Rs.2000. But the tax exemption for women did not change which is constant at Rs.1.9 lakh. They have to pay 10% tax for income between Rs.1.9 lakh and Rs.5 lakh; and 20% for Rs.5 lakh to Rs.8 lakh and 30% for income above Rs.8 lakh.

Did you read this?
Everybody Pays Taxes Including Those Below Poverty Line

VN:F [1.9.18_1163]
Rating: 0.0/5 (0 votes cast)

Tags: ,

Leave a Reply