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

No Need to File Income Tax Returns if Income is Below Taxable Limit, Even with PAN Card or After Resignation. A person inquired about the necessity of filing income tax returns when annual income is below the taxable limit, even if they possess a PAN card. Additionally, they asked if an individual who regularly files tax returns while employed needs to continue doing so after resigning and having no taxable income. The response clarified that filing nil returns is not mandatory if there is no taxable income, and individuals are not required to file returns during periods of unemployment if their income remains below the taxable threshold.