The Income Tax Department has changed PAN card rules with effect from December 5, 208 making it mandatory for all entities doing business worth over Rs 2.5 lakh in a financial year to have a Permanent Account Number.
A person, who enters into a financial transaction for an amount of Rs 2.50 lakh or more in a financial year, needs to apply for a PAN card on or before the May 31, 2019, said Central Board of Direct Taxation (CBDT) in a notification earlier this week.
It's mandatory for every individual be it a managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer (or any such person who does not have PAN) to apply for PAN on or before May 31 of the following financial year.
Every person is not required to give his/her father's name whose mother is a single parent. Resident entities shall have to obtain PAN even if the total sales/ turnover/ gross receipts are not or are not likely to exceed Rs 5 lakh in a financial year, Nangia Advisors LLP Partner Suraj Nangia told PTI.
The PAN card is still an important document for tax assessment and is required for opening bank accounts and filing of income tax returns (ITR).