No IT return by salaried class: FM

In an announcement by Finance Minister P Chidambaram on Sunday, the salaried class has been exempted from the need for 'actual filing of income tax return'.

Also, the decision to cut food subsidy by over Rs 4,000 crore has been put on hold.

The exemption from actual filing would be given after the electronic system of filing returns becomes a norm.

However, salaried people would still have to file "virtual returns," the details of which would be announced in due course, he said.

The Finance Minister also assured that tax rates would be maintained at reasonable levels.

He also said that the decision on the proposal of reservation in private sector jobs would be based on the recommendations of the Group of Ministers (GoM) and other considerations.

He also said that talks were being held with various parties to resolve food subsidy cut issue. Until then, the price increase for the Above Poverty Line families would be on hold, while the quantity available under the PDS would be reduced as decided by the Cabinet.

The Finance Minister also clarified that the Government would not interfere with the EPF interest rates which would depend on the earnings of the fund. Even at the present 8.5 per cent level, the EPF Board would have a shortfall of Rs 356 crore, he said.