NO NEED TO FILE INCOME TAX RETURN TO SALARIED PERSON BELOW 5 LAKH

NO NEED TO FILE INCOME TAX RETURN TO SALARIED PERSON BELOW 5 LAKH

Finance Minister Mr. Pranab Mukarjee said that there will be no need to file income tax return to the salaried person whose income is below 5 lakh. The income should be only from salary and salary components and not income from other sources. Finance Minister said that the circular for not filing income tax return to be published very soon. This rule for not filing income tax return to the salary holder will be applicable from the assessment year 2010-11 and the financial year 2011-12. 

Finance Minister was addressing 27th annual Conference of chief Commissioner of income tax in New Delhi on Tuesday, 24th May 2011. He also set the target of direct tax collection for the financial year 2011-12.

On the issue of Direct Tax Code, Finance Minister said that the direct tax code will be implemented from the financial year 2012-13 because there is a lot of jib done to implement it such as forms, change all the income tax structure etc. and it needs time.

Finance Minister also stated that TDS is the main component of the direct tax collections because of very healthy concept of pay as you earn. He also stated that the CPC unit at Gaziabad will be start working very soon.

Do You Know?

Investment Product	Return	Company	Annual	Return	Return	Risk	Tax Benefit
		Bank	Investment Amount	Assurance	Grade		Section
Infrastructure Bond	10%		5000	Sure	Low	Zero	80CCF
Recurring Deposit Bank	9%		1200	Sure	Low	Zero	Nil
Bank Deposit	10%		5000	Sure	Low	Zero	Nil
Bank Tax Saver Fixed Deposit	9%		5000	Sure	Medium	Zero	80C
Corporate Fixed Deposit	11%		5000	Sure	Medium	Medium	Nil
Gold Exchange Traded Fund	12%		6000	Sure	Medium	Medium	Nil
Fixed Maturity Plan	10%		5000	Unsure	Medium	Medium	Nil
New Pension Scheme	12%		6000	Unsure	High	High	80CCD
Equity Linked Saving Scheme	15%		6000	Unsure	High	High	80C
Monthly Income Plan	12%		6000	Unsure	High	High	Nil
Mutual Fund	15%		6000	Unsure	High	High	Nil
Term Plan	50 Lakh		8000	Sure	High	Zero	80C
Health Insurance	Unlimited		1500	Sure	High	Zero	80D
Critical Insurance	5 Lakh		3000	Sure	High	Zero	80D

Tax Exemption Options

Tax Exemption Options

Following table give you more idea about income tax exemption plans

Section	Product To Invest	Amount To Invest	Other Details
80C	NSC, Bank Deposits and Post office time deposit, EPF, PPF, ELSS, Life insurance plans, Pension plans.	Cannot exceed Rs.1 lakh	Mandatory requirements - Payment has to be made before 31 March. Who can avail the deduction - Individuals and HUF (both resident and non-resident).
80CCC	Pension plans of life insurers.	Limit of Section 80C (up to Rs.1 lakh)	Mandatory requirements - Payment has to be made before 31 March. Who can avail the deduction – Individuals
80D	Medical insurance policies taken for self, spouse, dependent parents or children, or any member of HUF.	Up to Rs.15,000; senior citizens can claim up to Rs.20,000	Mandatory requirements - Premium should be paid through a cheque out of income chargeable to tax Who can avail the deduction - Individuals and HUF.
80DD	Expenses on the medical treatment of a dependent who is a person with a disability.	Up to Rs.50,000, or up to Rs.75,000 if the dependent is a person with severe disability.	Mandatory requirements - Certification by a medical authority Who can avail the deduction - Resident individual or HUF.

               

Section	Product To Invest	Amount To Invest	Other Details
80DDB	Expenses on the medical treatment of a specified disease (cancer, AIDS, neurological diseases, chronic renal failure and more)	Rs.40,000 (if the person treated upon is less than 65 years of age),or Rs 60,000 (if the age of the person treated is 65 years or more)	Mandatory requirements - Certificate in Form No.10-l to be submitted along with the income tax is available if the amount is actually paid for treatment. Who can avail the deduction - Resident individual or HUF.
80E	Payment of interest on loan taken for higher studies.	Deduction available on the total interest portion of education loan, the Principal repayment gets no tax advantage	Mandatory requirements - Deduction is available in the year in which repayment starts and only for eight immediately succeeding assessment years. Who can avail the deduction – Individual
80G	Donations to certain funds and charitable institutions.	50 or 100 % deduction on the entire donated amount or 50 or 100 per cent deduction subject to 10 % of gross total income.	Mandatory requirements - Not applicable
80GG	Rent paid for residential purpose	Excess of actual rent paid over 10 % of GTI, or 25 % of GTI, or Rs.2,000 per month, whichever is the lowest.	Mandatory requirements - Should not be getting house rent allowance. Actual rent paid is in excess of 10% of the total income Who can avail the deduction - Self-employed or salaried.
80U	Expenses incurred on self, if disabled	Rs.50,000 for a person with disability, Rs.75,000 for a person with severe disability (disability of over 80 %)	Mandatory requirements - Certification by a medical authority to be furnished along with the income tax return form. Who can avail the deduction-Resident individuals