Finance Minister Pranab Mukherjee has brought a big relief to the salaried class by giving them exemption from tidius process of filing returns unless they have other sources of income. This is the third Budget of Pranab Mukherjee.
In the Memorandum to the Finance Bill 2011 the government will be issuing a notification exempting “classes of persons” from the requirement of furnishing income tax returns.
Salaried taxpayers who do not have other sources of income and whose incomes are subject to Tax Deduction at Source (TDS) will be excluded from filing returns. Therefore, in cases where there is no other source of income, filing of a return is duplication of existing information which is not required and can be exempted.
The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers. This is a good development if institutions such as housing finance companies, banks etc. treat the Form 16 as a good proxy for the ITR.Google+