Updated Pan Cards Rule That Come Into Effect From December 5

By the notification of The Central Board of Direct Taxes(CBDT) has amended the income tax rules and said the new rules would come into effect from December 5.

PAN cards are mandatory for any transaction above Rs 2 lakh and for a lot of other activities like the opening of a bank account and as identity proof.SBI account holders: From net banking to Buddy, here are the big changes implemented from December 1

“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,” CBDT circular said.

1. Financial transactions worth or above Rs 2.5 lakhs to apply for PAN Card by May 31

According to CBDT, it is now 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 application has to be filed on or before May 31 of the assessment year for which such income is assessable, the central tax body said.

2. Furnishing father’s name is mandatory for the allotment of PAN

Under the amended rules, quoting of father’s name in PAN application forms will not be mandatory in cases where the mother of the applicant is a single parent. The application forms would give an option to the applicant as to whether the mother is a single parent and the applicant wishes to furnish the name of the mother only. Currently, furnishing father’s name is mandatory for the allotment of PAN.

3. Financial transactions aggregating to Rs 2.50 lakhs woukd require PAN number

The amended Income Tax Rules, 1962, says: In the case of a person, being a resident, other than an individual, which enters into a financial transaction of an amount aggregating to two lakh fifty thousand rupees or more in a financial year and which has not been allotted any permanent account number, on or before the 31st day of May immediately following such financial year.

4. Total sales/ turnover/ gross receipts exceeding Rs 5 lakh have to obtain PAN

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.

5. Office bearer of organisation must apply for PAN on or before 31st May

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 the person, or any person competent to act on behalf of the person referred, who does not have a permanent account number, on or before the 31st May, must immediately apply for a PAN Card following the financial year in which the person referred enters into financial transaction

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