New PAN card rules will come into effect from December
In a bid to prevent tax frauds, the Income Tax Department has come up with new rules on PAN cards. Among other things, the Income-tax (Twelfth Amendment) Rules, 2018 make it mandatory for all businesses/individuals with an annual net turnover/gross income of up to Rs. 2.5 lakh to have PAN cards. The new rules will come into effect on December 5. Here's more.
The CBDT's statement regarding change of 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 Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962," said the CBDT in a statement.
Notable changes brought in by the new rules
Under the new rules, managing directors, directors, partners, trustees, authors, founders, kartas, chief executive officers, principal officers or office bearers (or any such person who does not have PAN) will have to apply for a PAN card by May 31, 2019. Further, resident entities will have to obtain PAN card even if their total sales, turnover or gross receipts are not likely to exceed Rs. 5 lakh in a financial year.
Father's name no longer mandatory for PAN application
Another notable change is that the furnishing of father's name will not be mandatory for a person whose mother is a single parent. Earlier, it was mandatory for applicants to disclose their fathers' names. Additionally, the Income Tax Department has also altered certain parts of the PAN application form.
