8 Replies to “A person his income is less than the taxable income but he has obtained a pan card .Is it compulsory to file?”

  1. Hi,
    Having a PAN number does not mean that he must file for a return. If his income is below the tax limit, he need not file the return at all. Yes, if he wants to file a return, he can file a NIL return. But it is his wish; there is no compulsion for this.

  2. I have heard that in a few years it will be mandatory for a PAN card holder to file his return. But at present it is not compulsary.
    Moreover, it is often beneficial to file your IT return, even if tax is NIL. One benefit is that you can take different kind of loans on your ITR profile.

  3. You must file your India tax return if your income exceeds the amount not subject to tax. For the FY 2007-08, this amount is Rs. 1,10,000 for individual and Rs. 1,45,000 for women. This about is before taking into consideration your deductions under 80C, 80CCC…

    Even if you have PAN, you do not file tax return, unless your income exceeds this amount.
    Read http://mytaxes.in/index.php?topic=32.0.

  4. It is not mandatory to file income tax returns, if you donot have a taxable income. However, it is advisable to file income tax returns every year irrespective of whether you have a tax liability or not. This helps you bring your income to records and helps in many ways. Now a days for most of the financial transaction, everybody asks for last 3 years IT returns. If you have filed the same, you can establish your credit worthiness.

    Now filing income tax returns is very easy and you can do so online. I even suggest you to file income tax returns for last 2-3 years if you have not done so (there is no penalty for doing so, if you didn’t had a tax liability)

    For preparing and filing income tax returns absolutely Free of cost, you can visit http://eLagaan.com

  5. U/s 139 if your total income in respect of which you are assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax then you should furnish a return of your income during the previous year, in the prescribed form on or before the due date

    In short you need not file ITR.

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