Salaried class gets respite from the Indian Income Tax department. As per the Finance Ministry from this financial year, salaried employees earning up to Rs. 5 lakhs a year no longer need to file income tax returns.

The ministry is reported to have stated that `the exemption from filing I-T returns is applicable only if 'the total income of the employee does not exceed Rs. 5 lakhs ... (and) the annual interest earned from savings bank account is less than Rs. 10,000' for assessment year 2012-13. Filing I-T returns is, however, necessary to claim refunds. The exemption will be permitted only if the assessee has received a certificate of tax deduction in Form 16 from the employer. The employees have to report income from interest on savings bank account to the employer to become eligible for exemptions. The last date for filing tax returns is July 31.’

Under the Rs 5 lakh bracket, there are nearly 85 lakh salaried persons in the country. Their income along with salary and from other sources like bank deposits does not exceed Rs. 5 lakh. Until this notification was issued, it was mandatory for all salaried class to file income tax returns. (With inputs from internet- AW AarKay)