The Income Tax Department on Tuesday announced certain changes to the application form for PAN or Permanent Account Number. The Central Board of Direct Taxes (CBDT), the apex policymaking body of the Income Tax Department, amended the income tax rules and said that quoting of father's name in Permanent Account Number (PAN) application forms would not be mandatory in certain cases, according to news agency Press Trust of India. Quoting of a PAN, which is an identification number assigned to income tax assessees in the country, is required for financial transactions such as opening of a bank account and filing of income tax returns (ITR). The amended rules provide that furnishing of father's name will not be mandatory for a person whose mother is a single parent. The new rules will become applicable from December 5, the agency reported citing a CBDT notification.
Here are five things to know about the changes made to the PAN application form by the Income Tax Department:
1. The Income Tax Department said that the application forms from December 5 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.
2. The tax department had received several representations seeking relaxation in the rules regarding father's name in the PAN application.
3. The amended rules would give relief to the applicants whose mother is a single parent and, hence, they want to get their mother's name printed on PAN cards instead of the estranged or deceased father.
4. At present, furnishing of father's name is mandatory for the allotment of PAN.
5. Besides this, the IT rules for specifying the time-line for making an application for allotment of PAN by certain persons and issuance of PAN has also been amended. The application has to be filed on or before May 31 of the assessment year for which such income is assessable.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
