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Major Changes in PAN Card Rules Which You Should Know
PAN Card or commonly known as Permanent Account Number is a very important document for undertaking financial transactions. For e.g., if you want to trade in stock market then you open a Demat Account, and quoting your PAN is mandatory for this process.
Hence any change or amendment in PAN rules is sure to watch out for. Recently, CBDT introduced some new provisions regarding the applicability of PAN Card.
Let's understand the amendments in a simple, and easy manner.
Amendments to PAN Card Rules
The Central Board of Direct Taxes (CBDT) has introduced amendments to certain rules related to the PAN card. These updates are as follows:
Financial transaction of ₹ 2,50,000 or more
If you are a resident assessee other than an individual, who has entered into a financial transaction of 2,50,000 or more. And does not possess PAN Card then you need to apply for it on or before 31st May of the year immediately following the FY in which such transaction was executed.
Business Stakeholders
If you have a financial interest in a business you need a PAN in this case. This requirement applicable if you are a managing director/ director/ partner/ trustee/ author/ founder/ Karta/ CEO/ principal officer/ office-bearer or someone competent to act on behalf of the above mentioned business. Then you need to apply for PAN (if not possessed already) on or before 31st May of the year immediately following the FY in which such transaction was executed.
Empowerment of Single Mothers
With the Indian law, as well as the society, becoming more open-minded, this PAN amendment is surely most welcomed. From now on, single mothers do not have to mention the father's name while applying for her child's PAN Card. This means mother's name will hold equal power in the column of father’s name.
Right to Equality
With the Supreme Court ruling in favor for equal rights of Transgender (or the 3rd Gender), this amendment was pretty obvious. Now the PAN Card application will have the option of Transgender, in addition to Male & Female.
Mandatory Requirement of Quoting Aadhaar to apply for PAN.
While applying for PAN you need to quote your Aadhaar mandatorily. So, if you do not own an Aadhaar Card then you will not be able to apply for PAN Card.
It is important to note that, point number 1, 2, and 3 will come into effect from 5th December onwards.
So if you haven't applied for PAN, and need one now, simply visit Tax2win and apply for one now. Our easy, hassle-free application process will get your PAN card within the shortest time, and the service fee is cheapest in the market.
Requirement of PAN Quotation for High-Value Transactions
This regulation mandates the quoting of a PAN card for transactions exceeding a specified monetary threshold. List of High-value transaction which requires PAN quotating:
- Cash deposits: Amounts totaling Rs. 10 lakh or more into a savings bank account within a single fiscal year.
- Fixed deposits: Deposits made into one or more term accounts, excluding renewals of matured term deposits.
- Credit card payments: Payments exceeding Rs. 1 lakh in cash or Rs. 10 lakh through any mode of payment.
- Investments: Purchase of debentures, bonds, or shares worth over Rs. 10 lakh.
- Real estate transactions: Buying or selling immovable property valued at more than Rs. 30 lakh.
- Banking transactions: Cash payments for bank drafts or cheques above Rs. 50,000.
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Frequently Asked Questions
Q- What are the new rules for PAN card applications?
The new rules mandate that individuals must quote their Aadhaar number while applying for a PAN card. Additionally, single mothers can now mention only their name without the father's name when applying for their child's PAN card.
Q- Is it mandatory to link PAN with Aadhaar?
Yes, it is mandatory to link your PAN with Aadhaar. Failure to do so may result in your PAN becoming inoperative.
Q- What changes have been made for non-individual entities?
Non-individual entities entering into financial transactions of ₹2,50,000 or more must apply for a PAN card by May 31 of the following financial year.
Q- Are there any changes for transgender individuals?
Yes, the PAN card application now includes an option for transgender individuals, in addition to male and female.
Q- What happens if I have multiple PAN cards?
Holding more than one PAN card is illegal. If you possess multiple PAN cards, you must surrender the additional ones to avoid penalties.
Q- Can existing PAN card holders apply for a new PAN under the PAN 2.0 project?
No, existing PAN card holders do not need to apply for a new PAN under the PAN 2.0 project. They can continue using their current PAN cards.
Q- How can I update my PAN card details under the PAN 2.0 project?
You can update your PAN card details, such as name, address, and date of birth, for free through the PAN 2.0 project's online portal.
Q- What are the benefits of the PAN 2.0 project?
The PAN 2.0 project aims to modernize PAN services by integrating all PAN-related processes into a single unified portal, offering enhanced security features like QR codes, and providing a paperless workflow.
