PAN Card rules changed: Income Tax Department has set new Pan Card guidelines to prevent illegal tax evasion which will be effective from December 5, 2018. The new Pan Card rules will be effective only for the annual financial transactions worth Rs. 2.5 lakh or more as per reports in a leading daily. Moreover, this new rule will have influence on such taxpayers who are associated with the business or is a founder of a company, Managing director or person with a higher position who does transactions more than 2.5 lakhs in one financial year.
According to a notification released by the Central Board of Direct Taxes (CBDT), in case of a person, resident, other than an individual who is involved in transaction equivalent to two lakh fifty thousand rupees or more but does not have a permanent account number must apply for a PAN on or before May 31st immediately in the following financial year.
Meanwhile, people who belong to this categories will have to fill the application for PAN before May 31 of the assessment year. Individuals who do not fall under the above-mentioned categories need not worry about the reforms as they don’t have to do anything with the changes in the rules. Also, this reform in the rules by the Central Board of Direct Taxes is likely to help the Income Tax Department to track unpaid taxes.