tax returns needed for salary-only earners

For those whose only source of income is a salary, the Budget has some good news – no need to file those complicated tax returns.

That’s what Finance Minister Pranab Mukherjee has proposed in the Budget presented today.

The government will be issuing a notification exempting 'classes of persons' from the requirement of furnishing income tax returns, said the Memorandum to the Finance Bill 2011.

The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, it added.

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," the Memorandum said.

Every person whose income exceeds the taxable limit is required to file return of income.

Read more at: http://profit.ndtv.com/budget/show-news/no-tax-returns-needed-for-salary-only-earners-142955?cp