My 18-year-old son obtained a PAN card as he wanted to learn share trading. I gifted him Rs 50,000 for this purpose, but then he did not get into trading. Does he need to file returns now that he has a PAN?
Filing of returns is mandatory for people who have an annual income above the basic threshold level
My 18-year-old son obtained a PAN card as he wanted to learn share trading. I gifted him Rs 50,000 for this purpose, but then he did not get into trading. Does he need to file returns now that he has a PAN?
Soma Shekhar, Bangalore
Yes, it is compulsory to have a PAN card for opening a demat account and to enable a person to trade in shares. But having a PAN number does not mean your son has to compulsorily file tax returns. Filing of returns is mandatory for people who have an annual income above the basic threshold level, which is Rs 2.5 lakh from 2017-18. As your son has no income, he is not required to file returns. Moreover, the amount gifted by you as a parent is exempt in the hands of major children.