1. I don’t need PAN Card
2. I have PAN. My Wife does not need a PAN.
3. My Income is not taxable; I don’t need to file return.
4. If I have a PAN, I have to file return
5. If I file for a year, I have to file it every year
6. I don’t have income/I am a Housewife, I don’t need to file a return
7. I filed return once, that’s enough
8. If I file return, I have to pay tax
9. For Filing return I need a C.A. or Tax Consultant
10. For Salaried people, Salary is the only Income
11. I have a small Shop/Business. I don’t need to file return
12. My only income is Bank Interest; I don’t need to file return
13. I am a senior citizen; I don’t need to file return
14. Hindu Undivided Family-what is that?
Now I am proceeding to answer all
1. I don’t need PAN Card
You always need a PAN no matter whether your income is taxable or not. Main reason behind is future planning. It’s proved that in the present scenario of changing economy and steep cost of living, an Individual would always like to make the minimum arrangement for meeting future demands. An average Indian, being to true to our roots, would always crave for the three basic necessities of life-Roti, Kapda and Makaan which is-Food, Clothes and a Shelter in it’s broader perspective. Now that most of the Indians are living in nuclear families with sole/single Income from a single person, getting a house without a home loan is soon becoming a myth. To add to the agony is the attack of credit cards and personal loans which is always the biggest hindrance to making an ideal living. Believe me, PAN helps to acquire to home loan too. Besides, it will be always your identity proof if not anything else.
2. I have PAN. My Wife does not need a PAN.
Another common myth. As I put it in earlier point, PAN is a bare instrument of your financial planning. I call it a bond, the benefit of which can be reaped in future times. If you have a working wife, call it a BOON. She needs PAN more than you. The simple argument is she has got a higher exemption and you can always use this facility as a vital tool of your tax planning. During my stint of a personal tax planner I have seen business families (especially marwaris and gujratis) use this deadly weapon most successfully. As I say, Planning and Timing are the most important ingredients of the platter of success. For a non-working wife also I will advocate for PAN as because she is also capable of claiming the same amount of exemption as the working wife. Now the question comes how a housewife can generate income and file return/help her spouse in tax planning. This matter will be discussed in next blogs.
3. My Income is not taxable; I don’t need to file return
When you already have a PAN, You have to file return compulsorily only when you have taxable income i.e. your income exceeds the specified limits. For knowing the limit, you have to refer to the applicable tax slab rates for the prevailing year.
4. If I have a PAN, I have to file return
Generally it is true. But if your income is not taxable for a year but was taxable in previous years, you can safely escape the filing. But am fond of doing things in a legal way so I will still advocate for filing yearly no matter your income is taxable or not.
5. If I file for a year, I have to file it every year
Please refer to answer 4.
6. I don’t have income/I am a Housewife, I don’t need to file a return
Please refer to answer 2.
7. I filed return once, that’s enough
It is always advisable to keep on filing because in that case it would be ‘chalu’ account. Ha ha …………just kidding.
8. If I file return, I have to pay tax
A big no……………I have heard many people saying this (including a well-educated Gentleman) .I don’t know where on Earth people get such rumors. Next time you meet somebody saying this, just ask a simple question-- why I should pay tax if I don’t have taxable income. Please remember, filing the returns does not obligate you to pay your tax. Filing is a mere way to o legalise your income no matter black/white.
9. For Filing return I need a C.A. or Tax Consultant
No. If you are little versed with Income Tax forms and procedure it is really not needed. But when you are aiming high for tax exemptions and planning it is always better to take advice of CA/Tax consultants. Now-a-days the Income tax site is always quite useful. I found the step-by-step guide for e-filing quite good.
10. For Salaried people, Salary is the only Income
For Salaried people, Salary may not the only source of income. He may have Bank Account (Savings) Interest, Mutual Funds, Bank Fixed deposits, Shares/Bonds, Other deposits, Rent from House Property, Rent from Shops even gambling income (I am serious) and Income from Horse-racing, Income from reality shows such as Indian Idol, Dus ka dum, Kaun banega Krorepati etc. Even Lottery Income also comes under Tax purview.
11. I have a small Shop/Business. I don’t need to file return
Income from shop/Business comes under Income from Business/Profession. Here also you can still file the return even if you don’t have the taxable income. But you should file.
12. My only income is Bank Interest; I don’t need to file return
Even if you are earning a Bank interest of as low as Rs.10, it is prudent to reflect it in returns. Many people in our country especially Pensioners or Retired Employee have nothing but Interest Income. They are eligible to file the return or continue doing if they are already filing from years. Please remember as a senior citizen you can always claim higher exemption. In most cases, Income of Senior Citizens will be exempted from tax because of higher exemption limits.
13. I am a senior citizen; I don’t need to file return
I think this case is already discussed in the previous point.
14. Hindu Undivided Family-what is that?
Hindu Undivided Family popularly known as HUF is a powerful tool of tax planning. I will give you more information about this in my future postings.
<<<-Past Posts
Future Posts ->>>
- Heads of Income and its chargeability
- Concept of Hindu Undivided Family (HUF)
Mohar :)
