In the rules for creating a PAN card, Father’s name will not be required
In the Permanent Account Number (PAN) application, the Income Tax Department has terminated the inadmissibility of giving the father’s name in the event of the separation of the applicant’s parents. The Income Tax Department has amended the income tax rules through a notification.
The Department has said that now there will be an option in the application form that the applicant can give the name of the mother in case of the separation of the parent. It is compulsory to name the father in the PAN applications right now. The new rule will come into effect from 5th December. Nagiya Advisors LLP partner Suraj Nangia said that through this notification, the tax department has removed the concern of those people, which is the name of the mother alone in ‘parent’. In such a situation, the person wants the name of the mother only on the PAN card. Not of a separated father.
This notification has made it mandatory to apply for PAN card for units having financial transactions exceeding Rs 2.5 lakh in a financial year. For this, applying for assessment year will be done on or before May 31.
Nangia said that for now resident units would have to take pan in that situation, whereas total sales-business-gross receipts are not more than Rs 5 lakh in a financial year. He said that this will help the Income Tax Department to keep an eye on financial transactions, broaden its tax base and stop tax evasion.