To avoid Tax Evasion, Income Tax Department framed new rules which came into existence from 5th December 2018.
What is PAN?
PAN card is a code issued by Income Tax Dept. with 10 digit Alpha-numericals and is unique to each and every one.That would be like this AEYPM5403H. It helps Income Tax Dept. to keep track of tax paid or to be paid or evaded by the Assessee.
Uses of PAN Card
- For Purchase & Sale of Vehicle.
- To open Demat account
- For issuance of Credit card
- For payment of cash which is more than 50000/-
New PAN card rules
The new rule has made it necessary for all businesses with a Net turnover/Gross Income of upto 2.5 lakh PA to have a PAN. The Pan card rules, to come into effect from December 5th 2018, a person other than Individual, need financial entities which makes transactions worth ₹ 2.5 lakh or more in a financial year also needs to apply for a PAN card on or before 31 May 2019.
- The Notification said that, in case a Managing Director, Director, Partner, Trustee, Author, Founder, Kartha, CEO or principal officer etc., will also be required to apply for PAN on or before May 31th 2019.
- The resident entities will have to obtain PAN card even if the total sales or Gross Receipts are not likely to exceed 5 lakh in a financial year.
- Announced certain changes in PAN application form (Quoting the father’s name in PAN would not be mandatory)
- Furnish of father’s name will not be mandatory for a person whose mother is a single parent.
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