Finance Minister Pranab Mukherjee brought a sigh of relief for many whoes earnings are 5 lac per annum as they no longer have to file the Income Tax return.
The only requirement that has been set for the people coming under this slab is that in case such a salary earner has income from other sources like dividend, interest etc. and does not want to file returns, he will have to disclose such income to his employer for tax deduction.A move that will bring relief to about 80 lakh people was announced by the Finance Minister Pranab Mukherjee when he presented the Budget in February
On Tuesday, Pranab Mukherjee said this will be applicable in the 2011-12 assessment year for the income earned in 2010-11. He said that a notice to this effect will be brought out soon and the Form 16 issued to salaried employees will be treated as Income Tax Return, he added.
This move will reduce the compliance burden on small taxpayers to a great extent.
He even asked the Central Board of Direct Taxes to be vigilant in suspected money laundering cases and cautioned that the terror activities and other crimes are being funded by anti-national elements through illegal transfers.
Mukherjee disclosed that to check these transfers, government has approved setting up of Directorate of Criminal Investigation in Income Tax Department itself. The Directorate will track the criminal activities before, during and after the crime is committed.
Expressing his keenness on fiscal consolidation, Mukherjee stressed that fiscal deficit has to be reduced drastically to achieve the goal.