Mentioning father’s name will not be mandatory in PAN application from December 5
NEW DELH: The income tax department 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.
Through a notification the Central Board of Direct Taxes (CBDT) amended the income tax rules and said the application forms will have an option for 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 rule would come into effect from December 5.
With this amendment the tax department has addressed the concerns of those persons whose mother is a single parent. Now, such persons can have the option of whether they want to get their mother’s name printed on PAN cards instead of the estranged/ deceased father.
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.
Tax experts have averred that the step will help the income tax department track financial transaction, broaden its tax base and prevent tax evasion.