Salary and interest income up to Rs 5 lakh, No tax return Now

New Delhi, Jun 6 (PTI) In India, as many as 85 lakh salaried tax payers whose taxable income, including salary and interest income, is up to Rs 5 lakh, are not required to file income-tax return from now onwards.

"No income-tax returns is required for salaried persons whose annual annual taxable income including salary and interest is up to Rs 5 lakh. We would shortly notify this," a Central Board of Direct Taxes official said.

However, he said this would not cover income from other sources like house property, capital gains and gains from profession and business.

The scheme would be applicable from assessment year 2011-12 onwards. This means that the salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year).

Under the scheme, those salaried persons who want to claim tax refund, would have to file income tax return.

As per the Memorandum to the Finance Bill 2011, the government will be issuing a notification exempting ''classes of persons'' from the requirement of furnishing income tax returns.

Under the scheme, the salaried person wants 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 obligatory for all salaried persons to file income tax return under the Income Tax Act, 1961.

The idea behind the move is that in cases where there are no other sources of income, filing of a return is a duplication of existing information.

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TCS Becomes India's third most valuable company

Tata Consultancy Services topples ONGC to become India's third most valuable company with its market capitalisation soaring to over Rs 2.31 lakh crore. ONGC dropped to the fourth position with a market capitalisation of Rs 2,30,220 crore.

Reliance Industries and Coal India with M-cap of Rs 3.10 lakh crore and Rs 2.57 lakh crore, respectively, remained the top two most valued companies, according to the data available with BSE.

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NRI Investment Options

NRI understands the lay of the land, and at the back of his mind, the desire to own property back home, if he needs to retrace his steps to his homeland, remains strong. An investment in land results in pure appreciation, but along with that come the risks of encroachment,

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Greater economic opportunity in the home countries drew these immigrants back with 60% of those polled saying it was India's thriving economy that lured them back to start new ventures.

Over half of the returnees have set up IT based start-ups with nearly 31% of these companies situated in Bangalore.

Options available for NRIs:

As per the Government of India, NRIs are given the following facilities as far as investment is concerned.

1. Bank accounts in India
2. Investment in securities and debts
3. Investment in immovable properties such as real estate

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