Recently, the Income Tax department announced to make few changes in application form for Permanent Account Number (PAN). The Central Board of Direct Taxes (CBDT) through a notification amended the income tax rule. The new rules would come into effect from December 5. As per the new notification by CBDT, it has been made mandatory that all entities doing business worth over Rs 2.5 lakh in a financial year to have a Permanent Account Number. Check out the new rules of PAN card.
As per the new rules, the new application forms from December 5 would give an option to the applicant as to whether mother is a single parent and the applicant wishes to furnish the name of mother only. At present, father’s name is mandatory for PAN card.
It is also 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 till May 31 of the next financial year.
The 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.