On 28th February 2011, the entire nation was watching announcement of Union Budget 2011, especially the salaried class people with high expectations on new benefits.
Following are some of the changes being introduced in the Union Budget for 2011-12 for individuals:
– Basic exemption limit raised (for male employees aged less than 60 years) from Rs 1.6 lakh to Rs 1.8 lakh. This provides a flat tax saving of Rs. 2,000 per annum.
– Eligible age limit for Sr Citizens reduced from 65 to 60 years;
– New category of Very Sr Citizen above 80 years created and exemption upto Rs 5 lakh granted
Apart from the above, Cogzidel would like to discuss an important announcement that the Finance Minister, Mr. Pranab Mukherjee has made during his speech, which most of you wouldn’t have noticed. Here’s the extract of his speech:
“The Board shall soon notify a category of salaried taxpayers who will not be required to file a return of income as their tax liability has been discharged by their employer through deduction at source.
CBDT will provide a separate web-based facility to enable a direct, stand-alone interface for taxpayers with the Income Tax Department so that they can report and track the resolution of their refunds and credit for prepaid taxes.”
While the announcement has NOT been made yet, let us note down few points in this regard:
a) The note purely means that a category of salaried tax payers will NOT be required to file the Income Tax Returns, as their liability towards tax has been discharged through their employer.
b) The ‘category’ will be announced soon. Hence, it should not be understood that this rule applies to all the salaries class people.
c) This applies only for the salaried class people who have no other income except salary.
d) The Government tries to avoid the pain for the salaried class category to file the Return of Income, if their tax liability is completely discharged through their employers via TDS.
e) However, it is always better to file your “Return of Income” for various benefits like your personal VISA processing, loan processing, eligibility requirement (if you are planning to be an entrepreneur in the near future and would like to apply for bank loan) and so on.
For any clarifications in this regard, please feel free to contact us at firstname.lastname@example.org