No Need to file Income tax return if you have only Salary Income up to Rs. 5, 00,000

No Need to file IT return if you have only Salary Income up to Rs. 5, 00,000If your earning is up to Rs, 5, 00,000 during the financial year then you may not require filing your income tax return. From the financial year ending 31st march 2012, if an individual’s total income does not exceed Rs. 5, 00,000 and consists of only salary and/or interest from a bank saving account not exceeding Rs. 10, 000 then he is exempted from filling his IT return. However you have the option of filling your IT return if you have decided to do so or else you can avail the exemption benefit.

To avail this exemption of non filling IT return you have to do followings;

  1. Report your PAN number to your employer
  2. Report your interest amount generated from saving bank account to your employer
  3. Obtain your form-16 from your employer having details of your pan number, salary details and tax deducted from your salary etc. 

If during the year, you worked for more than one employer then you need to file your IT return and this exemption provision is not applicable. This provision is applicable to those employees who have worked for one employer during the financial year (1st April to 31st march).

If you have refund to obtain from IT department then you need to compulsorily file your income tax return.

Prior to this amendment in IT act, it was obligatory for all the individuals to file there income tax return if there income exceeds the basic exemption limit of tax. Now with the amendment few individuals will not get trouble of filling there IT return. IT returns are asked by various banking and financial sectors for loan, so our advice is to file your income tax return regularly even though you are coming under this exemption.

Editorial Staff at Yourfinancebook is a team of finance professionals. The team has more than a decade experience in taxation and personal finance.