New Delhi, November 28: The Income Tax Department has announced a new set of rules for the Permanent account number (PAN) card applicants. The new rules for PAN card will come into effect from 5th December, 2018. With the new rule in place, it is mandatory for every PAN card holder to furnish the PAN card for any transaction above Rs 2 lakh. Apart from this, an individual is also needed to give the PAN details for a lot of other activities including opening a bank account. PAN Card Online: How To Apply For New PAN Card, Make Corrections, Track & Download it Free. 

“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,” the CBDT notification said. It added saying that these rules may be called the Income-tax (Twelfth Amendment) Rules, 2018. IT Department Makes Mentioning Father's Name Non-Mandatory For Applicants. 

Here's all you need to know about new PAN card rules:

  1. The circular by CBDT informed that in the case of a person, being a resident, other than an individual, which enters into a financial transaction of Rs 2.5 lakh or more in a financial year and does not have a permanent account number, on or before the 31st May, must immediately apply for one in the following financial year.

  2. An individual will have to obtain PAN even if the total turnover/ gross receipts are not or are not likely to exceed Rs 5 lakh in a financial year. if this is done, it will help the income tax department track financial transaction.

  3. The notification said that in case a managing director, director, partner, trustee, author, founder, chief executive officer, principal officer or office bearer (or any such person who does not have PAN), he/she will also be required to apply for PAN on or before May 31 of the following financial year.

  4. The IT Department has also rolled out few changes in the PAN application form. The Income Tax rules have been amended stating that the father's name in PAN application forms would not be mandatory in certain cases.

  5. The CBDT notification made it clear that as per the new rules, the furnishing of father's name will not be mandatory for a person whose mother is a single parent. As of now, furnishing father’s name is mandatory for the allotment of Permanent Account Number (PAN). These new rules will become applicable from December 5.

The PAN card is an identification number assigned to income tax assessees across the nation. An individual is required to furnish the PAN for a number of financial transactions like opening a new bank account, the filing of income tax returns (ITR) among others. How to Link Aadhaar Card to PAN Card in Easy Steps: Know Online and Offline Ways to Link PAN Number and Aadhaar Number.

On September 26, the Supreme Court struck down some provisions relating to the authentication of Aadhaar. However, under Section 139AA of the Income Tax Act, it is mandatory to link your Aadhaar with PAN. The new deadline for linking the two documents is March 31, 2019.

(The above story first appeared on LatestLY on Nov 28, 2018 01:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).