New PAN Card Rules: Income Tax Dept Makes Key Changes w.e.f. December 05, 2019

The increase in GST collections, the recent rise of income tax returns and installation of a new taskforce to overhaul the income tax act (which is not possible before the 2019 general elections) and the new PAN card rules signifies that government battle against corruption is in a full swing.

With 2019 elections around the corner, Modi government is leaving no stone unturned to occupy its candidature once again for the prime ministerial post. Let’s check what changes the government has made in PAN card

New PAN Card Rules

• PAN card is a mandatory identification number required for the financial transactions like the opening of bank account and filing of income tax returns. As per the new rules, it is not mandatory for the children with a single mother (sole applicant) to fill the father’s name.
• According to the new regulations, the companies who earn 2.5 lakh or more than that, need to have PAN card as a mandatory requirement.
• the resident entities are liable to obtain PAN even if the sales or turnover or gross receipts doesn’t exceed Rs 5 lakhs in a financial year. This step is taken to broaden the tax base and prevent tax evasion.
• Father’s name will no more be compulsory on the PAN card anymore.
• Besides that, the income tax department has amended the timeline for making an application and allotment of PAN by certain managerial persons (Karta, Founder, Director, Partner, Managing Director, Chairman etc.) and issuance of PAN. The application mandatorily needs to be filed before May 31, 2019.

New PAN card rules will be effective from the next month (December 5, 2018,) onwards.

These changes are being made by the government to eradicate the menace of red- tapism and corruption, which is dominating the country at every step. Right from PAN- Aadhaar linking to the new PAN card rules, government wants to leave no stone un-turned to curb the menace of black money.

The new PAN card rules will further help the government to improve its tax base and increase the net growth tax collections which will further help India to grow substantially and maintain the status of fastest growing economy.