Are you thinking to apply for pan card application form? If yes, it is good to be aware of the new PAN rules before applying for it. Few changes have been made regarding the Permanent Account Number effective December 5. These changes are notified by the income tax department dated November 19, 2018, and are necessary to know to successfully apply for the card. APN is now an important ID proof that is used in various financial transactions. Due to this, it is necessary to know about the changes and apply successfully for the card.
No father name mandate on the application form:
Before the Pan Card Apply, here are few new rules to understand. With this, the father’s name is not mandatory for PAN application. When the application is filed after December 5. 2018 there is no need to quote father’s name in the application form. This rule is applicable to a situation where the mother of the applicant is a single parent. This form will give an option to check on whether the mother is single and application wish to provide only mother’s name.
Non-individual identities should complete PAN application by May 31 of next FY:
It is amended in Section 139 A of the Income Tax Act that non-individuals who conducted over Rs. 2.5 lakh transactions are mandated to have a PAN. This requirement is effective from April 1, 2018, however, nothing is notified about the date by which application should be completed. Moreover, with the amendment in Rule 114, May 31 is notified of the next FY. Therefore, this rule is effective from December 5. This new rule is necessary to understand and important for the non-individual entities that usually have financial transactions of Rs. 2.5 lakh or more in a financial year.
They now have to get their PAN applied and received before May 31 of the next financial year. In addition, as per this new rule, if a Hindu Undivided Entity or any other entities that conduct Rs. 2.5 lakh financial transaction in the next financial year has to apply for this by May 31, 2019. This notification is further provided to state that if an individual is a director, managing director, trustee, Karta, founder, principal officer or an office bearer can definitely act on behalf of the non-individual and is required to apply for the PAN on or before May 31 of this financial year.
Thus, if you fall in any of such criteria, it is necessary to apply for the Pan Card Online or offline as per your feasibility. It is necessary to understand these new changes in the PAN rules and should be considered while applying for it. This change in rule makes it compulsory for an entity to hold a PAN when doing business at the specified turnover. While you fill the form, ensure that you follow the new update and input the needed details that will avid in any delay or decline of the PAN card. In addition, it is also expected to get a PAN card in just four hours and this service may start from next year.