New PAN card rules to come into effect from 5th December 2018

CBDT issued new PAN Card rules effect from 5th December, Himalai IAS Coaching Centre in Bangalore aims is to bring awareness about current affairs for the Civil Services Exam like IAS exam, KAS exam, Banking Exam.

In order to prevent tax evasion, the Income Tax Department Recently changed the PAN card rules. The Central Board of Direct Taxes (CBDT) making tax rules mandatory for business worth over Rs 2.5 lakh in a financial year for Permanent Account Number (PAN) will come into effect on 5 December 2018.

CBDT issued notification last week all entities which made financial transactions of Rs 2.5lakhin financial year must apply for PAN card till 31 May for the coming financial year to avoid tax evasion.

The CBDT notification said, powers conferred by section in 129A read with section 295 of the Income tax Act 1961(43 of 1916), the Central Board of Direct Taxes makes further amend the income tax rules 1962.

5 things to know about the new Pan card rules:

  1. PAN Card is an identification number assigned to income tax assesses in the country to avoid tax evasion. PAN is required for financial transactions such as bank account opening and filing of income tax return (ITR) according to the CBDT its mandatory.
  1. Who have made financial transaction worth Rs.2.5 lakh or more in a financial year to apply for a PAN card before May 31 of the assessment year for which such income is assessable said by central tax body.
  1. The income tax rules of amended says: If in case a person being a resident, other than an individual which enters into a financial transaction of amount aggregating Rs. 2.5 lakh or more in a financial years and allotted PAN before  31 May.
  1. Resident entities will have to obtain PAN card even if the total sales, turnover or gross receipts are not likely to exceed 5 lakh in a financial year, said Suraj Nangia, Partner, Nangia Advisors LLP the income tax department track financial transactions, broaden its tax base and prevent tax evasion
  1. The Income Tax Department announced certain changes to the application form for PAN, it amended the income tax rules and said that quoting of father’s name in PAN application forms would not be mandatory in certain cases, father’s name will not be mandatory for a person whose mother is a single parent.