No Income Tax Return for Salary Income upto Rs. 5 lakh

The Income Tax return is not required to file if following conditions are satisfied:

1.       Total Income Should not exceed Rs. 5 Lakh(After deduction u/s 80C to 80U)

2.       The Income should be from Salary and/or Interest from Saving Bank A/c (upto Rs. 10,000)

3.       The Salary Income Should be from One Employer only.

4.       Tax is deducted on Salary as well as Interest Income and Shown under Form 16.

5.       No Tax refund is due to employee.

Case Study for better understanding:

		Mr. A	Mr. B	Mr. C	Mr. D
Employment in		One Company	Two Company	One Company	One Company
Salary Income (A)		5,80,000	5,80,000	5,80,000	7,30,000
Interest Income
Saving Bank Interest (B)		10,000	10,000	10,000	10,000
Interest deduction upto
Rs.1,50,000 on home loan '(C)		-	-	-	1,50,000
Deduction u/s 80C  ( D )		1,00,000	1,00,000	1,00,000	1,00,000
Total Income E=A+B-C-D		4,90,000	4,90,000	4,90,000	4,90,000
Total Income As per Form 16		4,90,000	4,90,000	4,80,000	4,90,000
Whether Income Tax return is required to file		No	Yes	Yes	Yes
Reason for above			Note: 1	Note: 2	Note: 3

Reason for filing of Income Tax Return

Note:1  Mr. B had earned Salary Income from two employer, So he has to file Income Tax Return.

Note: 2 Interest Income of Mr. C is not shown under Form 16. So he has to file Income Tax Return.

Note: 3 Interest on home loan is covered under Loss from House property. So he has to file Income Tax Return.