New Delhi: The Income Tax Department Tuesday said quoting of father's name in PAN application forms will not be mandatory in cases where the mother of the applicant is a single parent.
The Central Board of Direct Taxes (CBDT) through a notification amended the income tax rules and said the application forms would give an option to the applicant as to whether mother is a single parent and the applicant wishes to furnish the name of mother only.
Currently, furnishing father's name is mandatory for the allotment of Permanent Account Number (PAN).
The new rules would come into effect from 5 December.
Nangia Advisors LLP Partner Suraj Nangia said that through the notification, the tax department has addressed the concerns of those persons whose mother is a single parent and, hence, would want to get their mother's name printed on PAN cards instead of the estranged/ deceased father.
The notification has also made it mandatory for entities that have made financial transactions worth Rs 2.5 lakh or more in a financial year to apply for a PAN card. The application has to be filed on or before 31 May of the assessment year for which such income is assessable.
Nangia said that now, the 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.
“This will help the income tax department track financial transaction, broaden its tax base and prevent tax evasion," Nangia added.
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Updated Date: Nov 20, 2018 18:42:40 IST