The FM in his budget for 2011 has announced that small salaried individuals having no other income except salary income would be exempt from filing of return of income/ Income Tax Returns, where tax is fully deducted by their employers.

Even though, the final blue print is still awaited, that what would the basis for this exemption, it is being presumed that upto certain bracket level of salary income, these individuals would be exempt from filing of their return of income/ Income Tax Returns. The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, and will also reduce the work load of the IT Department. The exemption from filing tax returns comes into effect from the assessment year 2011-12.

The Form 16 issued to salaried employees shall be treated as Income Tax Return, as in cases where there is no other source of income; filing of a return is duplication of existing information.

Of the country’s 35 million taxpayers, roughly half are salaried employees. The proposal to do away with returns for salaried taxpayers was earlier internally mooted within CBDT a few years ago. The argument in favour of the proposal was that income records for this class of taxpayer were available with both employers and banks.

The government should bring in the exact specification very shortly on this and we at Taxmantra.com will keep you posted about this.
At, Taxmantra.com , we just require your salary certificate/ other income details to file return of income. Taxmantra.com offers excellent tax support in addition to filing of return of income and comprehensive tax planning. You just need to fill in a form with basic details after attaching your salary certificate/ other income details, after which we take care to online tax return filing in most hassle free manner, making online income tax filing an excellent experience.

Get in touch with us to file tax return online today and stay hassle free !