No need to file tax returns for a salaried Person, if your annual income is up to Rs5 lakh.

No income-tax returns is required for salaried persons whose annual annual taxable income including salary and interest is up to Rs5 lakh. We would shortly notify this," a Central Board of Direct Taxes (CBDT) official said.

This would not cover income from other sources like house property, capital gains and gains from profession and business.

This will be applicable from assessment year 2011-12 onwards. 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 have to income tax file return.

Tax payers with annual income of up to Rs 5 lakhs will not be required to file returns, a move that will provide relief to about 70 to 80 lakh people.

Under the scheme, if a salaried person wants exemption from filing IT return, he 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 new return forms are in line with the government''s effort to make filing of returns simpler and user-friendly.

While Sahaj is for salaried people, Sugam return form is applicable for small businessmen and professionals covered under presumptive taxation.