Do you think that you are up-to-date with your knowledge of PAN cards? It’s time to check out these new PAN card rules issued in December 2018. Let’s take a look at the upgrades.
The Permanent Account Number (PAN) is a key document serving as a proof of identity and for use in financial purposes. Individuals are expected to have a PAN card irrespective of whether they pay taxes.
Your PAN is required for a host of financial purposes. Some of these include filing IT returns, opening a bank account, buying or selling a motor vehicle worth more than Rs. 5,00,000, applying for a Debit Card or Credit Card, making investments, purchasing property, taking a loan or completing your insurance payments.
A few changes with regard to PAN were notified by the Income Tax Department on November 19, 2018 and came into effect on December 5, 2018.
Additional Reading: How To Apply For A PAN Card
With the PAN card performing an indispensable role in our lives, it’s important to take stock of these amendments. Without further ado, let’s dive right in.
Quoting your father’s name is no longer mandatory for your PAN Card application
The new rule states that for applications made on or after December 5, 2018, it is not mandatory for applicants to state their father’s name.
This rule is applicable to select applicants whose mother is a single parent.
The application form will allow applicants to choose if his/her mother is a single parent, and if he/she is willing to furnish only the mother’s name.
Additional Reading: Applied For A PAN Card? Here’s How To Track Your Application Status
Non-individual entities should apply for PAN card by May 31 of the next financial year
The income tax rules amended by the Central Board of Direct Taxes (CBDT) have made it mandatory for all businesses with a net turnover of up to Rs 2.5 lakh per year to have a PAN before May 31 of the next financial year.
Additional Reading: How To Link Aadhar Card With PAN Card
Individuals whose yearly transactions amounts to Rs 2.5 lakh or more have to apply for PAN by May 31, 2019
This mandate is applicable to any individual who is a managing director, partner, director, trustee, founder, chief executive officer, principal officer or any person who is competent to act on behalf of a non-individual or business conducting a transaction of Rs 2.5 lakh or above in a single financial year.
Additional Reading: How To Make Changes To Your PAN Card
These new rules are directed at curbing tax evasion and offering more flexibility to tax payers. In addition, more updates are in the pipeline. As announced by Sushil Chandra, the CBDT chairman, the allotment of PAN in four hours is expected to commence within a year.