Salaried taxpayers upto 5 Lac income need not to file returns- notification to be issued in June

0 comments Tuesday, May 31, 2011
As many as 85 lakh salaried tax payers with an annual income of up to Rs 5 lakh will not have to file income-tax return from now onwards, a finance ministry official said. "No income-tax returns would be required for salaried persons earning up to Rs 5 lakh per annum. We would notify this in first week of June," outgoing Chairman of Central Board of Direct Taxes Sudhir Chandra told reporters here. 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). However, such tax payers would have to file return if they want to claim refunds, Chandra said. 

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Seller not liable to pay tax or penalty, if C forms given by Purchaser found to be not genuine afterwards- Madras High Court

The Madras High Court in an important judgement delivered in case of M/S Sastha Enterprises Vs. Appellate Authority, Commissioner(CT) II (FAC) [VSTI 2011 MAD B-165] has held that selling dealers cannot be held for higher tax liability and consequential penal action for false declaration of the documents produced on the side of Buyer. In this case the seller was held liable in reopened assessment case, to pay tax by rejecting in transit sales on the ground that the C form obtained from the purchaser was found to be not genuine as the same was not issued by the concerned Assessing Authority.

Hon’ble High Court in this case held that unless and otherwise it is, based on concrete material, found out that the transaction is not true or the petitioner-seller is the party to the act of fraud said to be committed by the purchaser, the question of disallowing the exemption already given to the petitioner for the transaction actually effected between the parties, does not at all arise.

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