The mandatory tax filling instrument PAN (Permanent Account Number) is mandatory for IT return to opening a bank account or doing a cash transaction above Rs. 50,000/-
The recent decision of the Honourable Supreme Court also confirms that Aadhaar is mandatory for filing of ITR and allotment of PAN.
So it is essential to link Aadhar with Pan as the new PAN rule.
Some amendments to PAN application forms have been announced recently and shall be effective from 5 December 2018. These are elaborated below:
# Currently furnishing of father’s name is mandatory in the PAN application form and this is printed on the PAN card. The amendment provides choice to the applicant on whether the name of father or mother needs to be displayed on the PAN card. Further, where the applicant’s mother is a single parent, quoting of father’s name in PAN application forms will not be mandatory.
# The amendment also mandates that a resident person other than an individual, (e.g., Hindu Undivided family, firm, charitable trusts, association of persons, body of individuals, a local authority, company), who enters into a financial transaction of an amount aggregating to Rs 250,000 or more in a financial year, shall apply for a PAN on or before 31 May of the immediately following financial year.
# Currently, tax authorities have been authorized to specify formats and standards for verification of documents filed with the PAN application / intimation of Aadhaar number, for ensuring secure capture and transmission of the data. Further, tax authorities are also responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing of the application forms for allotment of permanent account number/intimation of Aadhaar number. As per the latest amendment, these have now been extended to the issue of Permanent Account Number as well.
In short, it is now important to apply for PAN for all the individuals in a timely manner, to avoid any consequences.
CREDITS: THE FINANCIAL EXPRESS
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