In a major Income Tax reform, the finance minister Pranab Mukherjee has proposed that the people who get salary need not file their Income Tax returns in case they don’t have any other source of income.
This will mean that people who are working in government sector or are employed in the private sector will not have to go through the trouble of filing income tax returns.
These amendments are proposed to take effect from June 1, 2011.
“The electronic filing of tax deduction at source (TDS) statements has stabilised. The board shall soon notify a category of salaried tax payers who will not be required to file a return of income as their tax liability has been discharged by their employer though deduction at source,” said Mr Mukherjee in his budget speech.
He said that the Central Board of Direct Tax will provide a separate web based facility to enable a direct, stand-alone interface for tax payers with the Income Tax Department so that they can report and track the resolution of their refunds and credit for prepaid taxes.
The memorandum explaining the provisions of Budget said that in the case of salaried tax payer, entire tax liability is discharged by the employer through deduction of tax at source.