New pancard rule will effect from december 5

NewsDesk
New pancard rule will effect from december 5

The income tax department changed the permanent account number (PAN) criterion for businesses with effect from  December 5, 2018, thereby making it compulsory for all business entities with a turnover worth more than Rs 2.5 lakh in a financial year to have a PAN.

The new Income Tax department notification says that individuals like the managing director, director, partner, trustee, author, founder, CEO 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.

The new rule is for preventing tax evasion. Earlier the businesses required to apply for the PAN only if their turnover crossed Rs 5 lakh during the financial year.

In another important development, the I-T department has ruled that quoting of father’s name in PAN application forms will not be compulsory in cases where the mother of the applicant is a single parent (applicant’s father is deceased or separated. The new rule will also come into effect from December 5.

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