No Need to file Tax Return if your income is less than 5 Lakhs

In a welcome move, the Central Board of Direct Taxes has proposed that salaried taxpayers whose taxable income, including salary and interest income is up to Rs 5 lakh will not be required to file income-tax return from now.

However, this proposal does not cover income from other sources like house property , capital gains and gains from profession and business.

The scheme will be in force from assessment year 2011-12 onwards. This means that salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year). However, those salaried persons who want to claim tax refund, would have to income tax file return.

Under the scheme, the salaried person seeking exemption from filing IT return has to disclose about the incomes like, dividend and interest to his employer for tax deduction. In the scenario, the Form 16 issued to salaried employees will be treated as income tax return. At present, it is mandatory for all salaried persons to file income tax return under the Income Tax Act, 1961.

Indian Supreme Court lays down guidelines for grant of Interim stay

In a welcome move the Supreme Court has laid down guidelines regarding grant of interim stay in an attempt to prevent protracted litigation in civil disputes. A bench headed by justice Dalveer Bhandari issued the guidelines in the wake of increasing number of instances where parties who obtain a stay in their favour, file “frivolous” applications to delay the proceedings. The court’s direction came while it decided a petition filed by a woman who has been fighting a 40-year-old property dispute that was started by her husband and his brother. The bench slapped a fine of Rs. 2 lakh on the petitioner for filing a “frivolous petition” before the Delhi high court to delay the case. Due to the petition, the petitioner had managed to stall the eviction suit pending against him before the trial court for more than a decade.

The SC bench observed that the courts should be cautious in granting interim injunctions or stay in the absence of the opposite party. Short notice should be issued to hear both the parties and then pass suitable biparte orders.

Something Important that an Insured should Know

An insurance policy that an individual has sought exemption in the previous years lapses, is canceled or surrendered, then the tax benefit that the individual has claimed will be negated and an aggregate amount of deduction allowed in previous years will be considered to be income for the individual in the policy cancellation or lapsation year. So, in case a policy lapses or is canceled, the Individual not only loses out on the policy benefits but is also taxed for the earlier tax benefits claimed under section 80C.

So, it is in the interest of the individual insured to continue with the policy, not only to save taxes but primary objective being he will still be covered towards any untoward incidents.