Attention! Income Tax Department changes PAN card rules; click to know the major changes

The Income Tax Department has issued another notice stating that individuals who are managing director, director, partner, trustee, author, founder, karta, CEO or even office-bearer should apply for a PAN card if they don't have one. I-T in the notice said that the PAN card should be made within 31 May of the next financial year.

The revised rules have been made to prevent tax evasion and will come into effect from December 5, 2018. All the entities doing business worth over Rs 2.5 lakh in a financial year must apply for PAN card before the aforementioned deadline, says Central Board of Direct Taxes notice.

“In the case of a person, being a resident, other than an individual, which enters into a financial transaction of an amount aggregating to two lakh fifty thousand rupees or more in a financial year and which has not been allotted any permanent account number, on or before the 31st day of May immediately following such financial year,” says the new amendment in Income Tax Rules, 1962.

The new I-T department notification also says that individuals like the managing director, director, partner, trustee, author, founder, karta, chief executive officer or office-bearer of such entities should also apply for a PAN card, in case they don’t have one, within 31 May of the next financial year.

“In the case of a person, who is the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office-bearer of the person referred to in clause (v) or any person competent to act on behalf of the person referred to in clause (v) and who has not been allotted any permanent account number, on or before the 31st day of May immediately following the financial year in which the person referred to in clause (v) enters into financial transaction specified therein,” reads the amendment.

CBDT also said that father's name in Permanent Account Number (PAN) application forms would not be mandatory in certain cases.

Also read: Income Tax Department has made some important changes to PAN Card application form; click to know more