Permanent Account Number (PAN) is a unique tax identification number allotted to people by the Income-tax authorities. The card is mandatory for filling of IT returns, opening bank accounts and depositing cash exceeding Rs 50,000 in the bank and a number of other transactions related to movable and immovable property.
In order to keep a check on tax evasions, the Income-tax department has introduced changes in the application of PAN from today.
Updated rules:
No mandatory father's name: For people who only have a mother as a parent, mentioning father's name is not mandatory anymore. The applicant can choose to have the mother's name or father's name on the PAN card. Currently, the PAN card has the cardholder's father's name.
If the applicant does not specify, father's name will be displayed on the PAN card by default.
Mandatory PAN card for transactions equal to or more than Rs 2.50 lakh: If any person other than individuals who fall under Hindu Undivided Family (HUF), firm, charitable trusts, association of persons, body of individuals and local authority or company who conduct transactions amounting to Rs 2.50 lakh or more in a single financial year say 2018-19, have to apply for a PAN by May 31, 2019, if they have not already applied already.
This is to keep in check the tax evasions by the small businesses and individuals.