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Are You Salaried With Upto 5 Lakhs Earnings? Exempt From Filing ITR

Are you salaried and have income below 5 lakhs then you might not need to file an income tax return (ITR) provided you meet some conditions. Conditions indicates that this exemption is not applicable to all the salaried people with total annual income upto 5 lakhs but limited to those people whose total income is less than 5 lakhs and who meets some predefined conditions imposed by the income tax authority.


Meet the following conditions to be eligible to be exempt from filing your income tax returns:-

  • Your income needs to be less than Rs 5 lakhs. Note that income here is total income after allowing for deductions. So your total income could possibly be more than Rs 5 lakhs but after deductions, if it is less than Rs 5 lakh, you meet this criteria.
  • Income is earned under the head salary among the 5 heads of income.
  • You can also have interest income from bank saving accounts. This interest income has to be less than Rs 10,000.
  • You do not have any other income (income from capital gains, income from house property and income from business)
  • Salary is from one employer only.
  • All interest income and dividend income is disclosed to the employer to include the same in Form 16
  • Reported his Permanent Account Number (PAN)  to his Employer
  • Obtain TDS certificate in Form No. 16 from the employer.

In case you are salaried, you always get Form 16 from your employer. You need to provide details of your income from other sources like interest income and incomes from dividends to your employer so that all your income details will reflect in your Form 16. So make sure that you pass on this information to your employer so that your Form 16 is correctly updated. If you meet the above conditions, the Form 16 issued to you by your employer would be treated as your income tax return.

This exemption from filing an ITR is applicable immediately – starting from Financial Year 2010-11 (Assessment Year 2011-12). If you meet the conditions specified by the government, you do not need to file any income tax return this year.

Not Eligible – This exemption if you fall under any of this category:-

  • You have a home loan and you are claiming tax benefit for paying the EMIs, because the tax benefit claimed for paying the interest is a “loss” under the head “income from house property”
  • You buy and sell shares or mutual funds, because any profit or loss is a gain / loss under the head “capital gains”
  • You have to claim a refund from the government
  • You have interest from FDs/NSCs.
  • You had more than one employer in one financial year

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