The Income Tax department has released a new set of rules for permanent account number (PAN) card applicants, in order to prevent tax evasion. The rules will come into effect from December 5.
Here are the details:
As per the new rules, it's not mandatory to furnish father's name for a person whose mother is a single parent.
Every individual is required to apply for a PAN on or before May 31, be it a managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer (or any such person who does not have PAN).
The document remains vital for tax assessment and is required for financial transactions such as opening bank accounts and filing of income tax returns (ITR). The notification has made it mandatory for entities that have made financial transactions worth Rs 2.5 lakh or more in a financial year to apply for a PAN card.
Nangia Advisors LLP Partner Suraj Nangia told newswire PTI that resident entities shall have to obtain PAN even if the total sales/ turnover/ gross receipts are not or are not likely to exceed Rs 5 lakh in a financial year.
