One by six is a criterion that needs to be met when you file your returns. In simpler terms, if you fulfill any one of the six criteria, you will have to file a return of income tax even though your income maybe below the tax-free limit of Rs 1 lakh. At the moment the six criteria are mobile phones, travel abroad, credit card, car, immoveable property, and club membership.

In this Budget, the finance minister has replaced mobile phones with electricity bill exceeding Rs 50,000 per annum. So if you had been filing tax returns because you own a cell phone, even though your annual income is below Rs 1 lakh, you need not do so in the future. As against that, if your electricity bill exceeds Rs 50,000 every year, you will be brought under the net of filing returns.

Do I get special deduction?

While earlier, the total interest plus principal portion of education loan repayment was deductible from income; the finance bill for 2006 says that only the interest portion of the loan repayment would be deductible. The good news is that this is over and above the limit of Rs 1 lakh set under the new section 80C.

For example, if you have taken an education loan of Rs 1 lakh at 12% interest repayable over 5 years, for this year you would get a deduction of Rs 26,688. That is the total interest plus principal repaid in the year. If you were to apply the new laws, you would get a deduction of only Rs 11,165.