NEW PAN CARD RULES FROM 5TH DEC’2018

NEW PAN CARD RULES FROM

5^TH DEC’2018

Income Tax Department has notified few changes in PAN Card vide notification dated November 19^th ‘2018. These changes have come into effect from December 5^th‘2018. Since PAN is an important ID proof to conduct even the most basic of financial transactions, it is important to know that you are aware of these changes.

Here is a look at what the new rule state –

A) Father’s name not mandatory for PAN Application –

If you are going to apply for PAN on or after December 5, 2018, then you will not be required to mandatorily quote your father’s name in the application form. This rule will be applicable only if the mother of the applicant is a single parent. The application form will now give the applicant an option as to whether the mother is a single parent and the applicant wishes to furnish the name of only his mother.

B) Non – Individual entities have to apply for PAN Card till 31^st May 2019
As per Finance Act’2018, an amendment was made in Section 139A of the Income Tax Act’1961 which made it mandatory for non-individuals who conducted transactions above 2.5 lakhs in a fiscal year, to mandatorily get the PAN. This requirement came into effect from April 1, 2018. However, the date by which they have to apply for PAN was not notified. Now with the amendment in Rule 114, this date has been notified which is May 31 of the next FY.

The notification further states that an individual who is the managing director, director, partner, trustee, a author, founder, karta, chief executive officer, principal officer or office bearer or any person competent to act on behalf of the non-individual (who conducts the transaction of Rs 2.5 lakhs or above in a single financial year) and has not been allotted any PAN, will also be required to apply for PAN on or before May 31 of the following financial year.

For any queries/clarification you may contact