Tax

CBDT amends PAN card rules

Central Board of Direct Taxes (CBDT) has recently amended the PAN card rules to prevent tax evasion and empower women. These rules are called the Income-tax (Twelfth Amendment) Rules, 2018 and will be effective from 5 December 2018.

“In exercise of the powers conferred by section 139A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962,” stated the circular CBDT.

According to the new rule, it is now mandatory for all businesses with a net turnover/ gross income of up to Rs 2.5 lakh per year to have a Permanent Account Number (PAN).

Also, the persons responsible for acting on behalf of the businesses, which enters into a financial transaction of more than Rs. 2.5 lakh, is also mandatorily required to get a PAN.

The PAN application for the same will have to be filed on or before 31 May of the assessment year for which such transactions will be assessable.

Starting December 5, PAN application forms will have the option to furnish only mother’s name in-case applicant has a mother as a single parent.

This amendment is a welcome change for applicants who have been raised by their mothers single-handedly.

 

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