On Tuesday, The Income Tax Department stated that Fathers Name on the applicant would not be necessary in cases where the Mother is a single parent.
The Central Board of Direct Taxes (CBDT) through a notice mandated the income tax rules and said the application forms would give an option to the applicant as to whether the mother is a single parent and the applicant wishes to furnish the name of the mother only.
In the current scenario, furnishing the father’s name in the Pan Card applications is mandatory in nature.
From December 5, 2018, the new rules would come into power.
Suraj Nangia who is the Nangia Advisors LLP Partner voiced 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.
The new orchestration had also made it compulsory 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.
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 as stated by Nangia.
In addition, Nangia says,
“This will help the income tax department track financial transaction, broaden its tax base and prevent tax evasion.”