The Department of revenue has put into effect new rules regarding Permanent Account number (PAN) card. They will be effective from December 5 to put a check on tax evasion. The new rules will prove very beneficial for the taxpayers. It will help them to explore more options. Also, allow flexibility to new taxpayers and to check tax evasion. The Central Board of Direct Taxes notified the same to all the people on November 19, 2018.
- A resident person other than an individual such as Hindu undivided family, body of individuals, charitable trusts, association of persons, body of individuals, firm, a local authority or a company, charitable trusts who enters into a financial transactions amounting to Rs 2.5 lakh or more in a financial year must apply for a PAN by 31 May of the next financial year.
- A person who is the managing director, author, Karta , partner ,director, trustee, founder, , chief executive officer, principal office or office bearer of the above entities or any person competent to act on behalf of such entities shall apply for one by May 31 of the financial year in which financial transaction worth Rs 2.5 lakh or more.
- Mentioning the father’s name in PAN card filed will not be mandatory for the applicants. Also, the revised application forms will have the option for all applicants to choose from. According to a new rule, a user can choose a father or mother name on the PAN card. In case no option is selected in the PAN application form, then by default, the father’s name will be selected and displayed on the PAN Card.
In a nutshell, people who do not have a PAN card and conduct transactions worth Rs 2.50 lakh in a single financial year will need to apply by March 31, 2019.