Filing of IT Returns

[Srivatsan Krishnamachari]

Dear Learned Friends,

Kindly clarify the following queries:

1) A person has a PAN Card but his/her annual income is below the taxable limit; though he/she has no taxable income as above said, is it mandatory to file nil returns.

2) An assessee who regularly files return as long as he/she is in service and earning salary resigns and remains un-employed during the next following years and during that period the income of him/her is well below the taxable limit.Is it mandatory to file the returns in such situation or can he/she choose not to file returns  since there is no taxable income during the period he/she remains unemployed.

Thanks & With Regards,

K.S.Vatsan

[ALOKE GHOSH]

Dear Mr. Vatsan

In respect to your first query - It is not mandatory for any person if he possess PAN while he/she has no taxable income and no NIL return is required to be filed. If latter on the department ask for clarification in respect to non filing of return, you have to establish that as you had no income accordingly you have not filed any return.

In respect to your second question- If the assesses remain unemployed and having no taxable income whatsoever, he/she  is not liable to file return of income.

AI Summary

Filing obligation: No requirement to file income tax returns when income is below the taxable threshold, even if PAN held. Holding a Permanent Account Number (PAN) does not impose a filing obligation where annual income is below the taxable threshold; no nil return is required. If the department questions non filing, the taxpayer must establish absence of taxable income. Similarly, a former salaried assessee who is unemployed and has no taxable income during subsequent years is not liable to file income tax returns for those years.