Proposal to exempt Salaried Class from filing Tax return

The Chairman of Central Board of Direct Taxes (CBDT) which manages Income Tax Department in India has said that his department is likely to ...

The Chairman of Central Board of Direct Taxes (CBDT) which manages Income Tax Department in India has said that his department is likely to consider the proposal of exempting Salaried Tax Payers who have have no other income other than salary from filing Income Tax Returns.

If this proposal is considered in favour of Salaried Class, all employees including Cental Government Emplyees need not file any income tax return that has to be filed every year in the form of ITR-1 or ITR-2.

It is estmated that out of 35 Million Tax Payers in the country approximately half of them are salaried employees.

This change would also reduce the work burden of Income tax department.

The logic behind this proposal to exempt Salaried employees from filing tax retun is obviously the income details of salaried class is available with the employer as well as banks through which they receive their salary.

Source: Business Standard