Here's all you need to know about new PAN card rules

PAN Card is one of the most important documents required for various financial transactions such as opening a bank account, receiving salary (taxable) etc, sale or in high-value transactions.

Black Money has been a talking point in recent times and government is taking all steps to detect tax evasion. More changes are in offing to PAN card rules to check tax evasion. These rules will be in effect from 5^th December 2018. The Central Board of Direct Taxes (CBDT) through a notification has amended the income tax rules.

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,” CBDT circular said

1) The circular says that in the case of a person, being a resident, other than an individual, which  

    enters into a financial transaction of Rs 2.5 lakh or more in a financial year, must apply for PAN  

    Card on or before the 31st May of next financial year 

2) All such resident entities shall have to obtain PAN even if the total sales/ turnover/ gross  
    receipts are not above Rs 5 lakh in a financial year. This will help the income tax department 
    track financial transactions and prevent tax evasion. 

3) In the case of a person, who is the managing director, director, partner, trustee, author, founder, 

    karta, chief executive officer, principal officer or office bearer of such entities, who does not 

    have a permanent account number, on or before the 31st May, must also immediately apply for 

    a PAN card following the financial year in which the person referred enters into financial 

    transaction. 

4) The new rules don’t concern individual taxpayers who are not associated with entities 

    mentioned above.

These rules may be called the Income–tax (12^th Amendment) Rules, 2018

The income tax department has also done away with mandatory quoting of father's name for PAN applications. Income Tax department said father's name in PAN application forms will not be mandatory in cases where mother of the applicant is a single parent

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