The Income Tax Department on Tuesday approved the proposal to not make father's name mandatory in a PAN application where the applicant's mother is a single parent. In a notification from the Central Board of Direct Taxes (CBDT) said that the PAN application forms will have an option to furnish only the mother's name in cases where the applicant's mother as a single parent.
The present rules require mandatory mention of the father's which also printed on the PAN card. The new rule will be applicable from 5 December 2018. The new provision will allow applicants to have their mother's name printed on the PAN card instead of their deceased/ estranged father.
The notification also mentioned that it is now mandatory for entities with financial transactions worth Rs 2.5 lakh or more in a financial year to apply for a PAN card. The application will have to be filed by 31 May of the assessment year for which such income is assessable. This means that even resident entities will have to obtain a PAN even if their total sales/turnover/ gross receipts does not exceed Rs 5 lakh in a financial year.