Here are the new PAN rules that came into effect from today
New Delhi, Dec 5: Some of the rules related to PAN card have been ammended and these will into effect from today. It used to be mandatory to furnish the father's name for the allotment of Permanent Account Number (PAN). This has been been changed. Beginning today, 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.
PAN is the tax identification number mandatory for filing income tax returns (ITR) and can be applied either online or offline. Quoting of PAN is also mandatory for transactions such as opening of a bank account, depositing cash exceeding Rs 50,000 into a bank account, opening a demat account, investment in shares/ mutual funds, and immovable property transactions.
Here are some of things you must 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.
- It has also been been 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. The amendment also mandates that a resident person other than an individual, (e.g., Hindu Undivided family, firm, charitable trusts, association of persons, body of individuals, a local authority, company), who enters into a financial transaction of an amount aggregating to Rs 250,000 or more in a financial year, shall apply for a PAN on or before 31 May of the immediately following financial year.