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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 father’s name is mandatory for the allotment of Permanent Account Number (PAN).
The new rules would come into effect from December 5.
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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.
Nangia said that now, 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.
“This will help the income tax department track financial transaction, broaden its tax base and prevent tax evasion,” Nangia added.