Department of Revenue issues three new rules for PAN card
In order to check tax evasion and allow more options to taxpayers, new rules regarding Permanent Account Number (PAN) have been brought into effect by the Department of Revenue. Central Board of Direct Taxes (CBDT) issued a notification last month, announcing that the Income Tax Rules, 1962, have been amended with effect from December 5.
The following changes took place:
If any person applies for a new PAN card, a new application form will be given, wherein it will not be mandatory to mention father’s name. Before this, it was mandatory to furnish father’s name and it was also printed in the PAN card. Now the Income-Tax Department has made an exception for those whose mother is a single parent. This amendment is meant to address the concerns of those PAN card applicants whose fathers are estranged or dead.
The PAN applicant will be given a choice as to whose name they want to be printed on the card. In case no option is provided, then only father’s name will be used. Even if you have given father’s name, then also you will have the option to mention mother’s name in your PAN card.
The PAN card is mandatory for businesses:
The Income-Tax department has made it mandatory to hold a PAN card for small businesses doing a transaction of at least 2.5 lakh in a financial year.
“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 and 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,” says the new rule.
This rule is also applicable to individuals like the managing director, director, partner, trustee, author, founder, karta, chief executive officer or office-bearer of all such entities