New Delhi: The Income Tax Department recently changed the PAN card rules in order to prevent tax evasion. The new rules will come into effect from December 5, 2018.
The new rule has made it mandatory for all businesses with a net turnover/gross income of up to Rs 2.5 lakh per year to have a PAN.
According to CBDT circular said, “In exercise of the powers conferred by section 139A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Boar d of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962.”
“These rules may be called the Income-tax (Twelfth Amendment) Rules, 2018,” it added.
New PAN card rules to come into effect from 5 December:
Here are five things to know about new PAN card rules:
* The Income Tax department had received several representations seeking relaxation in the rules regarding the father’s name in the PAN application.
* According to the current rule, furnishing the father’s name is mandatory for the allotment of PAN.
* Beginning December 5, the application forms will provide an option to the applicant as to whether the mother is a single parent and if the applicant wishes to furnish the name of the mother only.
* The amended rules would bring relief to the applicants whose mother is a single parent.
* The IT rules for specifying the timeline for making an application for allotment of PAN by certain persons and issuance of PAN has also been amended. The application has to be filed on or before May 31 of the assessment year for which such income is assessable.
* CBDT also said that father’s name in Permanent Account Number (PAN) application forms would not be mandatory in certain cases.
