PAN Card is one of the most important documents for businesses as well as individuals while filing Income Tax Return. Here are some of the changes in PAN, that were recently ruled out by the Income Tax Department.
Revision in PAN
Here is the list of changes in PAN for Individuals, that were ruled out by the IT Department: –
- It is mandatory for an applicant to provide his Father’s name in PAN application, but this won’t be mandatory from 5th December 2018. From 5th December 2018, the Permanent account number applications will provide an option to the applicant, where the applicant will be asked whether the mother is a single parent and if the applicant wishes to furnish only the name of their mother. It will come as a relief for all the applicants whose mother is a single parent. This amendment was ruled out on the request of various applicants from across the country whose mother is a single parent. These applicants will have their mother’s name on their Permanent account number cards instead of their estranged or deceased father.
- The Managing Directors, Directors of shell companies, Partners of Firms, Trustees and other authorities of Trusts as well as the Karta of a Hindu Undivided Family or HUF are supposed to have a Permanent account number Card. It will come as a relief for all the applicants whose mother is a single parent.
- Every Salaried Individual having annual Income of more than Rs. 2.5 Lakhs is required to have a PAN card.
- A taxpayer having interest income from a bank is supposed to have a PAN. Permanent account number is certainly necessary for those taxpayers who have an income of more than Rs. 10,000 from the fixed deposits. In case a taxpayer fails to update Permanent account number details he/ she will have to pay a penal interest of 20% on the amount.
- When a taxpayer invests more than Rs. 2 Lakhs in the mutual funds during a particular Financial Year, then, in that case, he/ she is supposed to have a PAN Card.
Since PAN is mandatory for the above-mentioned group of taxpayers, the Permanent account number applications are supposed to be filed on or before 31st May of the relevant assessment year by these taxpayers.