As per Finance Ministry notification, salaried employees with income upto Rs. 5 lacs need not file their income tax return for this financial year i.e. 2011-2012. To get exemption from filing of tax returns, an individual must report his PAN (permanent account number) and the entire income from bank interest (Savings Bank Interest up to Rs. 10,000) to his employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No 16.
Terms and Conditions
- If an Employee has Housing Loan or Interest Income from FIXED DEPOSITS (FD’s) or Post Office Interest or Interest Income from NSC or KVP (Even If it is Nominal Amount), they have to file their Tax Returns.
- If a Salaried Employee has more than One Form 16 or if he / she have additional Tax Liability or Refund (Excess Tax Paid or TDS deducted), such Salaried class have to file their Income Tax Returns.
- An Employee who has not received Form 16 from their Employer (Where Tax Returns are filed based on the pay slips as there is a TDS deduction by the Employer), Tax Returns need to be filed.
- If you've some tax refund, you need to file ITR.
Also, please note that if you're planning for any kind of loan – home loan, personal loan, vehicle loan etc. in future, I suggest you to file your proper ITR as in its absence, you may not secure your credit ratings.