Central Board of Direct Taxes made the new rules further to amend the Income-tax Rules, 1962, and made an announcement that the new rules in obtaining a PAN card for individuals, entities in India and is set to be effective from Dec 05th 2018.
Income Tax Department made the new PAN card rules to restrict illegal non-payment or underpayment of taxes.
Father’s Name made mandatory for individuals PAN applications, except where mother is a single parent
The rules are as follows
- Father’s Name made mandatory for individuals PAN applications, except where mother is a single parent, and mentioning mother’s name shall be
mandatory in cases where father’s name is not furnished and mother is the single parent.
- PAN cards are mandatory for any transaction above Rs 2 Lakh and for a lot of other activities like opening of a bank account and as identity proof.
- The CBDT circular said that in the case of a person, being a resident, other than an individual, which enters into a financial transaction of Rs Rs 2.5 Lakh or more in a financial year and does not have a permanent account number, on or before the 31st May, must immediately do so of the following financial year.
- The resident entities shall have to obtain PAN even if the total sales/ turnover/ gross receipts are not or are not likely to exceed Rs 5 Lakh in a financial year. This will help the income tax department track financial transaction, broaden its tax base and prevent tax evasion.
- In the case of a person, who is the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the person, or any person competent to act on behalf of the person referred, who does not have a permanent account number, on or before the 31st May, must immediately apply for a PAN Card following the financial year in which the person referred enters into financial transaction.
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