No need to file tax returns for income up to Rs5 lakh

"Assessees with income up to Rs5 lakh will be exempted from filing returns. The provision (regarding not filing of returns) will be notified in the first week of June..." CBDT chairman Sudhir Chandra told media persons

New Delhi: Tax payers with annual income of up to Rs5 lakh will not be required to file returns, a move that will provide relief to about 70 to 80 lakh people, reports PTI.

"Assessees with income up to Rs5 lakh will be exempted from filing returns. The provision (regarding not filing of returns) will be notified in the first week of June..." Central Board of Direct Taxes (CBDT) chairman Sudhir Chandra told reporters.

He said the new rule will apply from the current assessment year (2011-12) for the income earned in 2010-11.

However, people in this category (income up to Rs5 lakh) will have to file return if they seek refund, he added.

The revenue department, meanwhile, has notified simpler income tax return forms 'Sahaj' and 'Sugam' aimed at reducing compliance burden on salaried persons and small businessmen.

Mr Chandra said, "(These) are major steps towards simplification of income tax (I-T) return filing."

He also said efforts were being made to facilitate electronic filing through Sahaj and Sugam I-T return forms.

The new return forms are in line with the government's effort to make filing of returns simpler and user-friendly.

While Sahaj is for salaried people, Sugam return form is applicable for small businessmen and professionals covered under presumptive taxation.

Under India's presumptive taxation, a person carrying on business will not be required to get his accounts audited if the annual total sales, turnover or gross receipts are less than Rs60 lakh.

The limit was increased by finance minister Pranab Mukherjee in the 2010-11 Budget from Rs40 lakh.

The presumptive tax limit in case of professionals was increased to Rs15 lakh from Rs10 lakh.

Mr Chandra also said senior citizens (60 years and above) filing returns for incomes from pension, dividend, interest incomes and property will not be subjected to scrutiny.

"Such cases (of senior citizens) will not be picked up for scrutiny and the government will trust senior citizens," he said.

The government has reduced the age for the senior citizen category from 65 years to 60 years.

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COMMENTS

Sunil Ghotge

6 years ago

Is this applicable to all classes of assesses, ie salary-earners, professionals, or small businesses. Also, is it applicable even if the income is from various sources, like Interest, Dividends, Capital Gains, Income from House Property, so long as the Total earned is less than Rs 5 Lakhs ?

Global cues point out to a gap-down opening for Indian shares: Tuesday Market Preview

Investors were concerned that the downward revision in the US sovereign rating would slow growth in the world’s largest economy

The local market is likely to see a gap-down opening on dismal global cues. Marco economic news in the US pushed down key indices to the month’s low on Monday and tracking the weak US markets, those in Asia have opened weak this morning. The SGX Nifty was 39.50 points down at 5,699.50 compared to its previous close of 5,739.

The local market opened flat yesterday as Asian markets showed little gains following the Chinese central bank's decision to hike reserve requirements for banks. Poor quarterly numbers of Infosys and the rise in headline inflation for March continued to weigh on investors' minds for the second day. The Sensex opened at 19,390, three points higher than its close on Friday and the Nifty resumed trade a point lower at 5,824.

Select buying in metals, banking, capital goods and oil & gas stocks pushed the indices to the day's high at around 10.30am. At the high, the Sensex was up 262 points at 19,649 and the Nifty had gained 73 points at 5,898. After range-bound trading for an hour, the market witnessed a steep fall with the indices crashing down into the red on profit booking.

Sideways trading continued into the post-noon session with the market gradually edging lower and it touched the intra-day low in the last half hour, the Sensex at 19,071 and the Nifty at 5,722. The indices saw a marginal recovery from those levels, but still ended lower for the second straight day. The Sensex retraced 296 points at 19,091 and the Nifty closed at 5,729, down 95 points from its Friday close.

The sell-off was partly caused by short-term foreign traders selling, as debt troubles in Europe resurfaced and signals of interest rate hikes were visible around the world. The market benchmarks, the Sensex and the Nifty, have been on a downtrend from 6th April. It was punctuated by a rally on 13th April. That rally turned out to be a one-off affair. Given the way the market sold off today after a rousing start, expect further declines to 5,600 on the Nifty and 18,400 on the Sensex.

Markets in the US ended lower on Monday after Standard and Poor’s revised its outlook on the US credit rating lower to ‘negative’ from ‘stable’ on a poor budget outlook. The ratings cut could force investors to dump Treasuries and potentially send the country’s borrowing costs rising. The last time the US was placed on a negative watch was in January 1996.Concerns about the rate-tightening measures by the Chinese central bank also weighed on the sentiments.

This apart, the National Association of Home Builders/Wells Fargo Housing Market index fell to 16 from 17. A reading above 50 indicates that more builders view sales conditions as good than poor. The index has not been above 50 since April 2006.

Among stocks, Bank of America and Caterpillar each fell 3.1%, Citigroup finished flat and Halliburton gained 0.7%, after the oil-field-services company's first-quarter profit more than doubled.

The Dow tumbled 140.24 points (1.14%) to 12,201.59, its biggest point and percentage drop since mid-March and lowest close this month. The S&P 500 fell 14.54 points (1.10%) to 1,305.14. The index fell below 1,300 for the first time since 24th March, though it later rebounded above that level.  The Nasdaq declined 29.27 points (1.06%) to 2,735.38.

Tracking the weak US markets overnight, their counterparts in Asia were lower in early trade on Tuesday. Easing oil prices also hurt investor sentiment. Meanwhile, The International Monetary Fund on Monday criticised developing countries for not responding strongly enough to the surge of foreign inflows into their markets, saying the result could be a hard economic landing.

The Shanghai Composite was down 1.61%, the Hang Seng declined 1.46%, the Jakarta Composite fell 0.66%, the KLSE Composite lost 0.55%, the Nikkei 225 tumbled 1.49%, the Straits Times declined 0.94%, the Seoul Composite tanked 1.15% and the Taiwan Weighted fell 1.14%.

Brent crude for June delivery fell $1.84 to settle at $121.61 a barrel, having slipped to a session low of $121. Nymex crude for May fell $2.54 to settle at $107.12, after slipping as low as $106.54. The May crude contract expires on Tuesday.

Back home, diversified business conglomerate Aditya Birla Group on Monday said it has acquired Swedish pulp maker Domsjo Fibre for a total consideration of $415 million (over Rs1,800 crore). The production capacity of the acquired firm, which clocked revenue of $390 million last year, will be increased to 2.55 lakh tonnes by June 2012 from 2.1 lakh tonnes at present.

Commenting on the deal, Aditya Birla Group chairman Kumar Mangalam Birla said: “The acquisition further enhances our position in the global pulp and fibre business.”

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A downturn has begun: Monday Closing Report

Nifty may go down to 5,600 and Sensex to 18,400

The local market opened flat as Asian markets showed little gains following the Chinese central bank's decision to hike reserve requirements for banks. Poor quarterly numbers of Infosys and the rise in headline inflation for March continued to weigh on investors' minds for the second day. The Sensex opened at 19,390, three points higher than its close on Friday and the Nifty resumed trade a point lower at 5,824.

Select buying in metals, banking, capital goods and oil & gas stocks pushed the indices to the day's high at around 10.30am. At the high, the Sensex was up 262 points at 19,649 and the Nifty had gained 73 points at 5,898. After range-bound trading for an hour, the market witnessed a steep fall with the indices crashing down into the red on profit booking.

Sideways trading continued into the post-noon session with the market gradually edging lower and it touched the intra-day low in the last half hour, the Sensex at 19,071 and the Nifty at 5,722. The indices saw a marginal recovery from those levels, but still ended lower for the second straight day. The Sensex retraced 296 points at 19,091 and the Nifty closed at 5,729, down 95 points from its Friday close. Today's intra-day highs and lows were lower than those recorded on Friday, an indication that the market is on a downward trend. The advance-decline ratio on the National Stock Exchange was 379:1030.

Among the broader markets, the BSE Mid-cap index declined 1.29% and the BSE Small-cap index fell by 1.29%.

The sell-off was partly caused by short-term foreign traders selling, as debt troubles in Europe resurfaced and signals of interest rate hikes were visible around the world. The market benchmarks, the Sensex and the Nifty, have been on a downtrend from 6th April. It was punctuated by a rally on 13th April. That rally turned out to be a one-off affair. Given the way the market sold off today after a rousing start, expect further declines to 5,600 on the Nifty and 18,400 on the Sensex.

All sectoral gauges ended in the red today. BSE Realty (down 3.17%), BSE IT (down 2.73%), BSE TECk (down 2.32%), BSE Capital Goods (down 2.12%) and BSE Metal (down 1.92%) were the top losers.

Hero Honda (up 1.80%), Hindustan Unilever (up 1.65%), Bajaj Auto (up 1.09%), ONGC (up 0.66%) and Maruti Suzuki (up 0.19%) were the major gainers on the Sensex. On the other hand, DLF (down 4.69%), TCS (down 3.43%), Jaiprakash Associates (down 3.13%), Tata Steel (down 2.92%) and Infosys Technologies (down 2.80%) ended at the bottom of the Sensex list.

India's gross domestic product (GDP) is projected to continue to grow at a brisk pace of 8.8% in 2011-12 (FY11-12), according to the Centre for Monitoring Indian Economy (CMIE). The domestic environment is conducive for growth and private consumption expenditure is projected to grow by a healthy 7.5% and gross fixed capital formation by 14.6%, the leading economic think-tank said in its latest monthly review of the country's economy.

In FY10-11, the performance of India's economy has been robust, it said, and added that real GDP is estimated to have grown by 9% during the fiscal.

The People's Bank of China's rate-tightening initiative on Sunday spooked most markets across the region today. Investors were concerned that higher prices might induce other central banks in the region to take firm steps towards curbing inflation.

Meanwhile, media reports indicate that the Fukushima Daiichi plant will take at least six to nine months to resume operations after the nuclear power plant was damaged in the devastating earthquake in Japan last month.

The Hang Seng was down 0.74%, the Jakarta Composite fell 0.09%, the Nikkei 225 lost 0.36%, the Straits Times declined 0.28%, the Seoul Composite was down 0.13% and the Taiwan Weighted shed 0.04%. On the other hand, the Shanghai Composite gained 0.21% and the KLSE Composite rose 0.36%.

Back home, institutional investors-both foreign as well as domestic-were net sellers in the equities segment on Friday. Foreign institutional investors offloaded stocks worth Rs253.43 crore and domestic institutional investors sold shares worth Rs360.88 crore.

Aban Offshore (down 1.48%) has received firm orders from ONGC for the deployment of jack-up rigs, Aban III and Aban IV, for a period of three years each. The total value of these orders is around $138 million (equivalent to Rs620 crore), the company said in a filing with the exchanges.

McNally Bharat Engineering Company (1.40%) has informed the BSE that the company has received an order from SAIL's Bhilai Steel Plant for its New Coke Oven Battery No 11. The order, valued at Rs379 crore, is scheduled for completion in 24 months.

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