No, not everyone who holds a PAN card needs to file income tax returns compulsorily. As per Indian income tax laws, filing your returns is mandatory only for certain individuals based on specific conditions.
If your annual income exceeds the basic exemption limit as per your age and category, filing returns becomes mandatory. For example, for individuals below 60 years of age, this limit is ₹4 lakhs per annum currently. So if your total income from all sources like salary, interest, capital gains etc. crosses ₹4 lakhs in a financial year, you have to report it by filing returns.
Similarly, even if your income is below the exemption limit but you have foreign assets, are a company director, or have invested in unlisted equity shares, you still need to file returns.
Also, if tax was deducted at source from payments made to you during the year, you must file returns to claim refunds or adjust this TDS amount.
So in short, having a PAN card alone does not necessitate filing income tax returns for every individual. One must analyse based on income thresholds, resident status, types of income and other criteria to determine whether tax filing is mandatory or not.
