The Central Board of Direct Taxes (CBDT) has announced a string of reform measures to the income tax rules that will come into effect from today, December 5, 2018. Now, as per the reforms PAN card will be available within 4 hours of online application for new PAN. Addressing an industry conference, Sushil Chandra, chairman of the CBDT said that the department has taken recourse to technology and automation to facilitate ease of doing business. Reforms mainly focus on simplification in the process of refunds for the income tax return form.
Now, as per CBDT for those entities that have registered financial transactions worth Rs 2.5 lakh or more in a financial year, PAN card is mandatory. And those entities for which such income is assessable, and who doesn’t have the PAN card, the application for new PAN card has to be filed on or before May 31 of the financial year.
Under the new rules, furnishing father’s name in PAN application forms will not be necessary in case where the mother is the single parent. The application forms would give an option to the applicant s to whether the mother is a single parent and the applicant wishes to furnish the name of the mother only. As of now, fathers name is mandatory for the allotment of PAN.
Any financial transaction of an amount above two lakh fifty thousand rupees or more in a financial year would require a PAN card.
However, those entities that have their total sales/ turnover/ gross receipts below 5 lakh, are exempted from PAN card rules.
Office bearer of organisation, meaning a person who is the managing director, director, partner, trustee, author, founder, Karta, chief executive officer, principal officer or office bearer of the person, or any person competent to act on behalf of the person referred, who does not have a permanent account number, on or before the 31st May, must immediately apply for a PAN Card following the financial year in which the person referred enters into financial transaction.