Thursday 16 February 2012

The Form 16 treated as Income Tax Return for salaried individuals with a total taxable income of up to Rs 5 lakh



Salaried individuals with a total taxable income of up to Rs 5 lakh do not have to file income tax returns. However, in case tax payers  want to seek an income tax refund , they will have to file their returns.
In the above case, a salary people has income from other sources like dividend, interest etc.not exceeding Rs.10 thousand  and does not want to file returns, he has to disclose such income to his DDO.
The Form 16 is issued by DDO to salaried employees may be treated as Income Tax Return.
 According to the notification, individuals having total income up to Rs 5 lakh for financial year, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account of up to Rs 10,000 are not required to file their income tax return.
Such individuals must report their Permanent Account Number (PAN) and the entire income from bank interest to their DDO, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No. 16

However, persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims shall not be covered under the scheme.

source:tkbsen.com

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