All You Need To Know About The New Updated Rules Regarding PAN Card

Jan 17, 2019 Alankit

Getting one’s Personal Account Number might not be as anticipated for fresh adults who just crossed 18 years of age as a Driver’s License. However, it is one of the most important IDs to help an individual become a responsible adult by having a way to track their tax payments and source of income. The rules to apply PAN card, have recently changed and have made some great shifts to keep up with social standards. Here are the three updated rules pertaining to PAN cards that came into effect from December 5th, 2018.

1. Any firm, trust, body of individuals or association of persons that engage in transactions above Rs. 2.50 lakhs within any given financial year must apply for a PAN by May 31st 2019 in the event that they do not have one. If the deadline is not met, then the body of individuals can face legal consequences if reported. This rule is made with the hope that all major transactions are legal and not unreported black money.

2. Any individual who is a member of such firms like managing director, partner, officer, or office bearer a.k.a any individual competent enough to act on behalf of the firm must hold an individual PAN by May 31st, 2019. This is to ensure the tracking of sources of incomes for members of firms in order to prove their legitimacy and keep track of their taxes.

3. In a rather progressive move, the last rule seems to be a nod in the direction of considering single mothers. The final rule states that mentioning a father’s name is not mandatory for individuals whose mothers are single parents. The revised PAN application form of both 49A and 49AA now provide an option asking whether individuals prefer their father’s names or mother’s names to be listed on their PAN cards. This is quite heartening to see that in this world where gender equality is being promoted, the government has taken efforts to allow individuals to give parental rights and acknowledgement to mothers when it comes to government ID documents such as PAN. Hopefully this will lead to other government IDs to having similar options.

Overall, the new PAN Card rules benefit both the PAN holder and the government. Let us be responsible citizens and do our part in encouraging transparency of legal finance transactions. Black money is a huge issue in India and the Government has been taking measure through demonetization and Aadhaar/PAN regulations. Though the economy may have taken a hit, the increased tabs that are being kept on citizens when it comes to taxes are crucial for a step in the right direction for our nation. So, if you find yourself to be an income generating citizen of India, please do your part and apply for a PAN.

Alankit has established a wide network of its TIN-Facilitation (TIN-FCs) and PAN centers across the country. So, for any information concerning PAN Card, visit the center nearest to your location.

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