The Central Board of Direct Taxes (CBDT) had last month concluded to further introduce 3 vital rules which will not only effect individuals but resident persons/entities associated with Hindu Undivided Family (HUF), firms, company, charitable trusts, association of persons, body of individuals, a local authority, etc.
Let’s take a look what these new PAN rules ensue for you:
- Any resident person including Karta of an HUF, managing director, director, founder, partner, author, chief executive officer, trustee, principal officer or office bearer or a person competent to act on behalf of the person referred to above has to apply for PAN on or before 31st May of the following financial year in which financial transactions of Rs.250,000 or more were processed. For example, if transactions were undertaken in financial year 2018-19, then the concerned person must apply for a Permanent Account Number on or before 31st May 2019.
- Secondly, resident entities must also acquire a Permanent Account Number regardless of whether their turnover, total sales or gross receipts are expected to cross Rs.5 lakh in a financial year or not.
- Lastly, furnishing father’s name is not mandatory anymore for children of single mothers. Also, an individual can choose to display either father’s or mother’s name on their PAN card, contrary to PAN card’s bearing father’s name only till date.
Furthermore, CBDT has also empowered the Principal Director General/Director General of Income Tax (Systems) to specify the manner in which Permanent Account Number shall be issued, henceforth.