Sunday, August 4, 2019

Revised Rules for PAN

New PAN Rules: Income Tax Revises 5 PAN Rules

The IT rules related to the time-line for making an application for new PAN by certain individuals along with the rules regarding the issuance of PAN card has been amended. Come December, and the new clauses in the amended Income Tax Rules, 1962 will come into effect.

Let us check out these 5 new PAN rules that you need to remember from now on.



Revised Rules for PAN


The Central Board of Direct Taxes (CBDT) has amended certain Income Tax Rules from December 5. These rules are called as the Income-tax (Twelfth Amendment) Rules, 2018, according to their statement issued.

These new rules include:

  • All entities that have made financial transactions over Rs. 2.5 lakh or more in a financial year need to apply for a PAN card. They need to file the application on or before May 31 of the assessment year for which this income is assessable. Thus, all small business cannot evade tax from now on.
  • The circular also states that it is now mandatory for every individual including the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer, or office bearer (or any individual who does not have a PAN card) needs to apply for a PAN on or before May 31 of the following financial year.
  • Resident entities now need PAN card even if the total sales, turnover, or gross receipts are not likely to exceed Rs. 5 lakh in a financial year.
  • It also states, it is now not mandatory for PAN applicants to quote the father’s name where the mother of the applicant is a single parent. This will bring ease to applicants with a deceased father or have estranged relationship with the father.
  • A PAN card is needed for all transactions over 2 lakh/ year needs a PAN card that includes opening a new bank account, etc.

These are the new PAN rules that have come into effect from December 5 2018.


You May Also Like to Read

PAN for HRA Exemption

Know Your PAN 

What is Form 60 for PAN Card?

How to apply for pan card online

References:

1.https://www.ndtv.com/business/pan-card-rules-changed-check-latest-5-revised-pan-rules-income-tax-permanent-account-number-1956611

2.https://www.livemint.com/Companies/kSl3y1HyA7mNoUyPS1lOHL/PAN-card-application-rules-Income-Tax.html?utm_source=scroll&utm_medium=referral&utm_campaign=scroll

3.https://www.financialexpress.com/money/are-you-aware-of-these-new-pan-rules-all-you-need-to-know/1398540/

4.https://www.india.com/business/new-pan-card-rules-to-come-into-force-from-december-5-check-here-all-you-need-to-know-3447230/

5.http://zeenews.india.com/personal-finance/new-pan-card-rules-to-come-into-effect-from-5-december-all-you-need-to-know-2158591.html

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