The Income Tax department has changed PAN card rules with effect from 5 December 2018 i.e today.
Highlights about the new PAN card rules:
1. According to the new amendment in IT Rules, 1962, “In the case of a person, being a resident, other than an individual, which enters into a financial transaction of an amount aggregating to two lakh fifty thousand rupees or more in a financial year and which has not been allotted any permanent account number, on or before the 31st day of May immediately following such financial year.”
2. The new rule is not meant for individual taxpayers who are not associated with such entities.
3. Individuals like the managing director, director, partner, trustee, author, founder, chief executive officer or office-bearer of such entities should also apply for a PAN card, in case they don’t have one, within 31 May of the next financial year.
4. Now the resident entities shall have to obtain PAN even if the total sales or turnover or gross receipts are not or are not likely to exceed Rs 5 lakh in a financial year. According to the experts, “This will help the income tax department track financial transactions, broaden the tax base and prevent tax evasion.”
5. Also it is now optional for individual tax payers to give their father’s name in PAN card application forms for those with single parents. If a PAN applicant’s father is deceased or separated, he or she can chose not to mention father’s name at all in the form.