Tuesday, July 26, 2011

Exemption from filing returns is voluntary

The finance ministry’s decision to exempt salaried people with taxable income up to Rs 5 lakh from filing returns has become a bane for some taxpayers. Though the ministry had clarified that it was not mandatory for taxpayers to avail of this privilege, some taxpayers willing to file returns despite being eligible for exemption have complained they were advised against doing so. The issue has been forwarded to the ministry, which then issued instructions to tax officers to cooperate with taxpayers who wanted to file their returns. The matter came to light recently when some taxpayers told the Income Tax Department that they were being discouraged from filing returns and some income-tax commissioners told them that there was no need for them to file returns on the basis of a recent notification. 

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