Salaried employees to get more tax benefits
Now, salaried employees who are earning up to Rs 5 lakh a year, are not required to file income tax returns for assessment year 2012-13.
The immunity from filing I-T returns is valid in those conditions, when total income of the employee does not exceed Rs 5 lakh and the annual interest received from savings bank account is less than Rs 10,000. The exemption will be allowed only if the assessee has received a certificate of tax deduction in Form 16 from the employer. To become eligible for exemptions, the employees will be required to report their employer the income from interest on savings bank account. However, filing of income tax returns is necessary to claim refunds.