New PAN(Permanent Account Number) rules to come into effect from December 5: Check details
The Income Tax Department as recently changed the PAN (Permanent Account Number) card rules in order to prevent tax avoidance. The new guideline has made it compulsory for all organizations with a net turnover/net pay of up to Rs 2.5 lakh every year to have a PAN. The new standards will become effective from December 5, 2018.
According to CBDT Circular said, "In exercise of the forces presented by section 139A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, therefore, makes the following given rules further to change the Income-tax Rules, 1962,"
"These rules might be known as the Income-tax (Twelfth Amendment) Rules, 2018," it included.
Here are five things to think about new PAN card rules:
- The Income Tax department had gotten a few portrayals looking for unwinding in the rules with regarding the name of the father in the PAN application.
- As indicated by the current rule, outfitting name of the father is compulsory for the allotment of PAN.
- The amended rule would convey ease to the applicant whose mother is a single parent.
- The IT rules for indicating the timeline for making an application for designation of PAN by specific persons and issuance of PAN has likewise been corrected. The application must be documented at the very latest May 31 of the evaluation year for which such salary is assessable.
- Starting December 5, the application form will give a choice to the applicant with respect to whether the mother is a single parent and if the applicant wishes to outfit the name of the mother only.
CBDT additionally said that father's name in Permanent Account Number (PAN) application structures would not be required in specific cases.