New PAN Card rules from December 2018: Check Details inside
New Delhi : The Income tax Department has announced the new rules to be followed by PAN (permanent account number) card applicants. The PAN Card rules, to come into effect from December 5, 2018 and must be followed by every Indians.
The new rule is applicable to the financial entities which make transactions worth Rs 2.5 lakh or more in a financial year to apply for a PAN card, the Central Board of Direct Taxes (CBDT).
The new PAN card rules calls for kind attention to a person other than an individual, who enters into a financial transaction of an amount of Rs 2.50 lakh or more in a financial year.
Also, applicants need to apply for a PAN card on or before the May 31, 2019, said CBDT in a notification earlier this week. The IDT also made changes in the application form of a PAN card.
New PAN card rules include the following changes:
In case a managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer (or any such person who does not have PAN), he/she will also be required to apply for PAN on or before May 31 of the following financial year, the notification said.
According to the new PAN card rule, resident entities will have to obtain PAN card even if the total sales, turnover or gross receipts are not likely to exceed Rs. 5 lakh in a financial year, said Suraj Nangia, Partner, Nangia Advisors LLP. "This will help the income tax department track financial transactions broaden its tax base and prevent tax evasion".
As per the new PAN card rule, quoting of father's name in PAN application forms would not be mandatory in certain cases. The amended rules provide that furnishing of father's name will not be mandatory for a person whose mother is a single parent.