New Delhi: To prevent tax evasion and allow more flexibility to taxpayers, the Income Tax department has changed PAN card rules with effect from today. Last month, the Central Board of Direct Taxes (CBDT) had issued a notification announcing that the Income Tax Rules, 1962, has been amended with effect from December 5.
PAN card application form:
From today if you apply for a new PAN card, you will be given a new application form wherein it will not be mandatory to mention father’s name. So far it was mandatory to furnish father’s name as the same was also printed in PAN card. Now the I-T 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.
PAN applicants will continue to have a choice as to whose name they want 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.
PAN card mandatory for these entities:
To prevent tax evasion by small businesses, the Income Tax department has made holding of PAN card mandatory for all entities doing transactions worth 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 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.