New Rules For PAN Card

The Central Board of Direct Taxes (CBDT) through a notification amended the income tax rules and has declared new guidelines for the upcoming applications for Permanent Account Number (PAN). It is no more a prerequisite to enter father’s name, considering the cases of single parent.
According to the notification in the application forms an option is given to the applicant to choose if the mother is a single parent and the applicant is willing to submit the name of mother only.Till day, furnishing father's name was mandatory to obtain a Permanent Account Number (PAN) .

The new guidelines will come into effect from December 5 2018. Another change made in the rules is for entities with financial transactions worth Rs 2.5 lakh or more in a single financial year to apply for a PAN card compulsorily. The entities have to file an application on or before May 31 of next financial year. The already running entities shall have to obtain PAN even if the total sales/ turnover/ gross receipts are not likely to exceed Rs 5 lakh in a financial year. Apparently this move eases the income tax department to track financial transactions, widen its tax base and prevent tax evasion by the entities.

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