The Department of Revenue has issued new Permanent Account Number (PAN) card rules on December 5, in a bid to check tax invasion and allow convenience to new taxpayers.
The updated sections in the Income Tax Rules, 1962 have already been notified by the Central Board of Direct Taxes (CBDT) via a notification on November 19, 2018.
As per the rules, mentioning of father’s name in the application forms will not be compulsory for the applicants who only have their mother as a parent.
The updated PAN card application forms 49A for Indian and 49AA for foreign nationals will give the liberty to choose whether they want to use their mother’s or father’s name on PAN cards.
If the applicant does not select an option then, in that case, father’s name will be selected by default as stated in the guidelines under new PAN card rules.
Applying for PAN card by May 31 next year will be mandatory for individuals who fall under Hindu Undivided Family (HUF), firm, charitable trusts, an association of persons, a body of individuals and local authority or company who conduct transactions amounting to Rs 2.50 lakh or more in a single financial year.
If a person is a managing director, director, partner, trustee, author, founder, CEO, principal officer does not have a PAN card, he will have to apply for one before March 31 next year.
