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.
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.