Hi All :-)
I have a good news for all my Indian Readers. :-)
If you are a salaried person and if you earn less than or equal to 500,000 per annum only in form of salary, then you are may not file the Income Tax Returns from the Assessment Year 2011-12.
But if you earn other incomes like, Income from House Property, Income from Business / Profession & Capital Gains, then you have to continue filing the Income Tax Returns. However, if the company where you are employed deducts tax at source (TDS), then, to claim the refund you have to file the Income Tax Returns.
Another condition for being eligible for exemption of filing IT Returns is, the employee has to disclose his Sources of Income that fall under the head "Income from other Sources" like Interest Income, Divident Income, in "Form 16" to his employer. This "Form 16" will be treated as the Income Tax Return.
The reason why Central Board of Direct Taxes - CBDT allows the Salaried Assesses not to file IT Returns is the duplication of work i.e. the information in "Form 16" was same as the details of income in the Income Tax Returns filed.
However, the CBDT is yet to issue an official notification regarding the same and they are yet to officially classify the "Class of Assesses" that would be eligible to get exemption from filing IT Returns.