How to Income Tax Return efiling in India ?
According to the Income Tax Act 1961, it is compulsory for every salaried persons to file income tax return, whose annual income is above Rs 5 lakh, beginning from the assessment year 2010-2011.
Circular from the Central Board of Direct Taxes says, “No income-tax returns filing is necessary for salaried employees whose annual taxable income including salary and interest is up to Rs 5 lakh. Well Income tax returns is to be filed for Income from sources like house property, capital gains and profession/business gains. For the want of claiming tax refund, you have to income tax file return, which will be applicable from 2011-2012 onwards. This gives the meaning that salaried persons eligible under the scheme would not have to file returns for 2010-11 financial year in 2011-12 (assessment year).So get your Form 16 in from your employer and fill the Income Tax return form at the earliest possible. The tax filing has begun and companies have started sending Form 16 to their employees, helping them to file tax. The last date for filing income tax return is 31st July 2011.
New Rules for Income Tax Return efile 2011
5 Lakh Income Tax Filing Exemption Limitations
It is about the new rule that releases people earning less than Rs. 5 lakh from filing income tax returns. You will lose the income tax filing exemption if you had more than one job in a year, even if you met the other criteria.
Income tax filing exemption relevant to taxable income of less than Rs. 5 lakhs
Refer the taxable income and not your gross salary. If you have not understood, let me explain. If you have made Rs 5.5 lakh, but invest only Rs 1 lac in section 80C instruments, then your taxable salary is just Rs. 4.5 lakh, and which makes you free from filing income tax returns under the new rule.
Required Income from only your employer and a savings’ bank account
Go for earning interest by way of savings account and as long as that is less than Rs. 10,000 [ below Rs. 5 lakh limitation], you are exempt from filing income tax.
The already applicable income tax filing exemption
Interestingly the rule is relevant for the salary you earned in financial year of April 2010 – March 2011, so this rule is already applicable.