PAN card rules changed! Check important date, affected taxpayers, other details

Income Tax Department is coming up with new PAN card rules to restrain the illegal non-payment or underpayment of tax. The new PAN card rules will come into effect from December 5, 2018.

Ordinary individuals do not have to worry about the new rules as they would be applicable only for entities that have made financial transactions worth Rs 2.5 lakh or more in a financial year. As per a notification, it would be mandatory for such entities to apply for a PAN card. 

People belonging to the criteria will have to fill the application before May 31 of the assessment year.

The new PAN card rules made public by Central Board of Direct Taxes (CBDT) in a notification says, "In the case of a person, being a resident, other than an individual, which enters into a financial transaction of an amount aggregating to two lakh fifty thousand rupees or more in a financial year and which has not been allotted any permanent account number, on or before the 31st day of May immediately following such financial year,”

This new rule will affect only such taxpayers who are linked to business entities and serving as managing director, director, partner, trustee, author, founder, head of the family, chief executive officer or office-bearer or any other individual or entity with the higher position who have done the financial transaction of Rs 2.5 lakh in a financial year.

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It will help the government to strengthen the taxation system by helping the tax department to track financial transactions, broadening the tax base, restrain the illegal non-payment or underpayment of tax, preventing tax evasion or any other illegal activity which will harm the finance of the country.