Press Release dated 20.07.2012 issued by the Ministry of Finance
Exemption of Salaried Employees from Requirement of Filing of Returns for Assessment Year 2012-13
Central Board of Direct Taxes (CBDT) vide its Notification No. 9/2012 dated 17th February, 2012 has exempted salaried employees from the requirement of filing the returns for assessment year 2012-13. The exemption is applicable only if all the following conditions are fulfilled:-
• Employee has earned only salary income and income from savings bank account and the annual interest earned from savings bank account is less than Rs. 10 thousand.
• The total Income of the employee does not exceed Rs. 5 Lakh (Total Income means Gross Total Income Less deductions under Chapter VIA).
• The Employee has reported his PAN to the employer.
• Employee has reported his income from interest on savings bank account to employer.
• Employee has received Form 16 from his employer.
• Total Tax Liability of employee has been paid off by employer by way of TDS and employer has deposited TDS with central government.
• Employee has no refund claim.
• Employee has received salary only from one employer.
• Employee has not received any Notice from Income Tax Department for filing of Income Tax return.
July 21st, 2012 at 4:54 am
All media scream headlines as if the govt. has done some great relief to the “assessee” . the exeption limit and the conditions attached to it ensure that just a handful, i mean it, just a handful , fall in the “exemption” category.
This notification is just an eyewash & hardly a handful of assesses may be benefited
1. Any salaried employee bound to have some interest income from deposits & a very marginal interest of Rs.10000/- is fixed to ensure that very few assesses are left out
2. For assessee with housing loan & loan interest benefit , this notification will not apply.
3. If there is refund claim , again this notification will not apply.
CBDT, by this notification tries to show as if they have made a remarkable relief / assessee friendly exemption, making sure while drafting the circular that no assessee will benefit out of it.