PAN and return

Many individuals have taken a permanent account number (PAN) because it is required while making investments. Apart from the need for a PAN in equities and mutual funds, the requirement for this number is likely to get extended to other investment areas as well. However there is a difference between having a PAN and filing an income tax return.

What’s the difference?

Just having a PAN does not require a person to file their income tax return as long as one other condition is fulfilled—that the person has an income that is higher than the maximum amount that is not taxed. So as long as a person does not have taxable income they do not have to file returns.

Is the non-taxable limit uniform for everyone?

The non-taxable limit is different for different people depending upon their gender and their age. This is because there is a different exemption limit for all these people.

What are the other considerations?

The relevant figure for the financial year also has to be considered. For the current income tax return filing process when returns are being filed for the financial year 2007-08 then tax limits present for that year will be taken into consideration. This is different from the current limit that has increased.