Permanent account number card rules are going to change from 5th December 2018 as announced by the income tax department. The changes in the rules are aimed at curbing tax evasion while giving relief to the new PAN card applicants.
The latest amendment to the Income Tax Rules, 1962, is set to be applicable on 5th December 2018, as per the notification announced by the finance ministry.
Let us know the Revised PAN Card Rules under Income Tax Rules, 1962:
- Under the latest PAN card rules, an entity having transactions more than INR 2.5 lakhs in a particular financial year has to compulsorily possess the PAN card while the lower entity may or may not apply for the PAN card. The PAN card must be obtained before 31st May of the upcoming financial year.
- The applicability is also for the individual taxpayer in case they are holding a position as managing director, director, partner, trustee, author, founder, Karta, chief executive officer, principal officer or office-bearer. In case the individual taxpayer does not have a PAN card, then it is said to be applied and get before 31st May of the upcoming fiscal year.
- According to the experts till now the resident entities were ordered to get the PAN card even if there were no sign of total sales or turnover or gross receipts transaction exceeding INR 5 lakhs mark in a financial year.
- The new rule also abolished the requirement of father’s name in PAN card for single mother parent. Also, there is freedom to choose in between father’s or mother’s name to be printed on the PAN card.
- Also, the amendment includes the issues of PAN card applicants whose father is either no longer living with their spouse or dead.
