INSUBCONTINENT EXCLUSIVE:
will not be mandatory in cases where 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 the father's name is mandatory for the allotment of PAN
The new rules would come into effect from December 5.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
May 31 of the assessment year for which such income is assessable.Mr Nangia said that now, the resident entities will have to obtain PAN
even if the total sales, turnover or gross receipts 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," Mr Nangia added.
