New Delhi: The income tax department on Tuesday said quoting of father's name in PAN application forms will not be mandatory in cases where mother of the applicant is a single parent.
The Central Board of Direct Taxes 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 PAN. The new rules would come into effect from December 5.
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 Advisors partner Suraj 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 I-T department track financial transaction, broaden its tax base and prevent tax evasion," Nangia added....