February 22, 2012 9:08 AM

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No need to file IT returns for salaried employees earning up to <img src="rs.png" border="0" height="9px" /> 5 lakh

Salaried employees earning up to 5 lakh rupees a year will not be required to file income tax returns from this year. A Finance Ministry notification said that the exemption from filing will be permitted only if the person has received a certificate of tax deduction in Form 16 from his or her employer. To claim income tax refund, however, such persons will have to file returns. There are about 85 lakh salaried persons in the country whose yearly income, including earnings from other sources like bank deposits, does not exceed 5 lakh rupees. Prior to the notification, it was obligatory for all salaried persons to file income tax returns under the Income Tax Act, 1961.

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