individuals with annual income up to rs 5 lakh are now exempted from filing personal income tax return for the current financial year this relief was proposed in the union budget last year however a circular from the central board of direct taxes cbdt last week indicates that this relief has been extended for this financial year an individual can now file tax returns for this financial year by july 31 2012 however the exemption comes with some terms and conditions which determine the eligibility of an individual to seek the exemption from filing returnswho can seek this exemptionas per the notification only individuals who satisfy the following conditions are eligible for exemption from furnishing the tax return for the tax year 201112 a total income does not exceed rs 500000 b total income consists only of income under the following headssalariesincome from other sources by way of interest not exceeding rs 10000 from a savings bank accountavail an exemption apart from the above conditions an individual should also fulfill the following conditions to avail an exemption from furnishing tax return with the authoritiesreport his permanent account number pan to hisher employerreport savings bank account interest income to employer and the employer should withhold tax on such interest incomeemployer provides tax withholding certificate form 16 to employee which mentions the pan details of income and taxes withheldthere should be no further tax payable by the employee by way of advance tax or selfassessment taxno refund claim for the relevant tax yearthe employee should receive salary from only one employer for the tax yearapart from the abovementioned conditions an individual should keep in mind that the exemption under this notification is restricted to voluntary filing of tax return and does not apply to tax return to be furnished in response to notice issued by the tax authority for regular assessment or reassessment or assessment pursuant to search survey proceedings says amarpal chadha tax partner ernst youngwho are not eligible for this exemptionan individual cannot claim an exemption to file the tax return under this notification in the following casesthe individual has total income under any head other than salaries and income from other sourcesthe individual has total income exceeding rs 500000 for tax year 201112the individual has not submitted his pan to his employerthe individual has interest income other than savings bank account interest incomethe individual has not reported interest income from savings bank account to his employer and discharged his tax liability by way of advance tax or self assessment taxthe individual has refund claim in the return of incomethe individual has received salary income from more than one employersimilarly a person cannot claim benefit of non filing of tax return under this notification where he is required to file the same by a notice issued by the tax authorities says vineet agarwal director tax and regulatory services at kpmgthe withholding tax certificate form 16 issued by the employer to the employee which mentions the pan details of income