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The Income Tax department has changed PAN card rules, with effect from 5 December in order to prevent tax evasion by making it mandatory for all entities doing business worth over Rs 2.5 lakh in a financial year to have a Permanent Account Number.
As per the notification issued by the Central Board of Direct Taxes, all entities that are eligible under the new mandate must apply for a PAN card till May 31 of the next financial year.
According to the new amendment in Income Tax Rules, 1962: “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.”
Also as per the amendment, any individual who is the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or any person competent to act on behalf of the person(s) mentioned above have to obtain PAN card on or before the deadline said above, if they don’t possess one.
In a separate announcement, the Income Tax authorities have made it optional for PAN applicant’s to give their father’s name in PAN card application forms for those with single parents.
