22 July 2012
Is it compulsory that every person having pan card has to file ITR (income tax return) even if his income is below the exemption limit ?and also what in case of NIL income.?
22 July 2012
No it is not compulsory to file ITR just because you have PAN.... However, if your income is below the basic exemption then you can file ITR voluntarily and there is no restriction on that....
Pan Number also known as a permanent account number, is an identity that shows you are a tax payer, and without it, you cannot buy anything in India. Any financial transaction will require you to produce the pan number to enable income tax authorities cross check your claims when you file them. It is a specific alphanumeric number that is unique to each PAN card holder and is issued by the income tax authorities under the direction of the Central Board of Direct Taxes or CBDT. You are identified on the basis of the unique PAN number.
The PAN card has also come as a big boon for the income authorities as they can easily keep track of all transactions done by individuals with high net worth. The PAN card number is made up of five alphabet characters, followed by 4 numerical and the last character is another letter making it a unique 11 digit alphanumeric number. You have to quote the number for all financial transactions for easy identification by the income tax authorities.
If you are salaried and earn less than Rs. 5 Lakh a year – There is no need for you to file income tax returns for assessment year ending 2012. What his means that salaried persons will not have to file returns for earnings in current financial year (2010-2011).
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