Is it mandatory for a PAN card holder to file income tax return?
This is a very common question asked by many people to me, whether filling IT return is required for a PAN card holder. Even I have been looking for the answer of this question from long time. Generally if you have a PAN card and you are earning whatever income it is, you should file your income tax return. With this activity you make sure that you have declared your income to Govt. of India. But there is a provision that if your income does not cross that income tax limit then you can skip the IT filling. There is a system in place which is tracking every PAN card’s transaction to verify whether things are good or bad by IT department.
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Income Tax Department to issue letter to PAN holders not filing returns
Now the thing here could be many of such PAN holders income will be under limit only. But many have come to tax liability bracket but somehow saved them by not paying income tax so far. But from now onward IT Department is going to identify them. IT department is going to send a warning letter to 35170 PAN holders with details of their income which should be taxable. You can read the news here.
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But there are few points where I am not able to align myself.
With this step IT department will send notice to only those people who have not paid tax in-spite they should or every PAN card holder?
Why IT department need the data of those people who earn less than 2 lakh per year and not coming in any income tax bracket? This will increase much hassle for every one. And one more thing, in our country in many cases people issue PAN card as a photo identity proof also. But this is not correct actually, as you should only issue a PAN card if you earn something. In that case what will happen to them?
I hope I will get answers to these questions here itself. Kindly provide your feedback and share your knowledge regarding this news and make this useful for our readers.