New Delhi: Central Board of Direct Taxes (CBDT) has issued a notification announcing that the Income Tax Rules, 1962, will be amended with effect from December 5 2018.
The amendment has been made to prevent tax evasion and also provide certain flexibility for the taxpayers.
1) Introduction of Mother 's name in PAN card application form:
When applying for a new PAN card , it will not be mandatory to mention father’s name. Earlier it was mandatory to furnish your father’s name and the same was also printed in the PAN card. Now the I-T department has made an exception for those whose who have a single parent as in a mother in case the card applicants whose fathers are separated or dead.
PAN applicants will continue to have a choice as to whose name they want printed on the card. In case no option is provided, then only father’s name will be used. Even if you have given father’s name, then also you will have the option to mention mother’s name in your PAN card.
2) PAN card mandatory for small entities:
To prevent tax evasion by small businesses, it is now mandatory for small businesses to have a PAN card mandatory which are doing transactions worth at least 2.5 lakh in a financial year.
This rule is also applicable to individuals like the managing director, director, partner, trustee, author, founder, karta, chief executive officer or office-bearer of all such entities.
3) PAN Card application Time Frame: I-T rules for specifying the timeline for making an application for allotment of PAN by certain persons and issuance of PAN have been amended. The application has to be filed on or before May 31 of the assessment year for which such income is assessable.
4) PAN required for transactions over Rs 5 lakh: Resident entities will also now have to obtain PAN card even if the total sales, turnover or gross receipts are not likely to exceed Rs. 5 lakh in a financial year.
5) PAN mandatory for everybody : Quoting of a PAN is required for financial transactions such as opening of a bank account and filing of income tax returns (ITR).
6) PAN now electronic form
Earlier it was necessary to have PAN issued in the form of a laminated card. Finance Act, 2018 provided that PAN under the new series will have ten alphanumeric characters and it is sufficient if you quote this number and the laminated cards has been done away with.