New Draft Rules for issue of PAN Card released by CBDT

Summary : As per New Draft Rules In case no option is provided then PAN card will be issued with father’s name except in case where father’s name is not furnished and mother is the single parent. In such cases mother’s name
will be printed on PAN card

F.No. 370142/40/2016-TPL (Part-I)
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)

New Delhi, Dated August 31, 2018

Subject: Draft notification proposing amendments in rule 114 of the Income-tax Rules, 1962
and permanent account number application Forms (Form 49A and Form 49AA)-reg.

Rule 114 of the Income-tax Rules, 1962(the Rules) inter alia provides that an application for
the allotment of permanent account number (PAN) shall be made in Form No.49A (in case of
Indian citizens/Indian companies/Entities incorporated in India/Unincorporated entities formed in
India) or 49AA (In case of individuals not being a citizen of India/entities incorporated outside
India/Unincorporated entities formed outside India). At present, providing Father’s name in the
PAN application Forms (Form No.49A and Form No.49AA) is mandatory, however, the applicant
has been given an option to select name of either father or mother, which the applicant may like to
be printed on PAN card. In order to provide that father’s name shall not be mandatory in PAN
application Forms, where mother is the single parent, an amendment in PAN application Forms is
proposed to provide that mentioning father’s name in the aforementioned Forms shall not be
mandatory except in cases where mother is the single parent and mentioning mother’s name shall be
mandatory in cases where father’s name is not furnished and mother is the single parent.

2. Vide Finance Act, 2018 section 139A of the Income-tax Act, 1961 (the Act) has been
amended to provide for allotment of PAN to every person being a resident, other than an individual,
which enters into a financial transaction of an amount aggregating to two lakh fifty thousand rupees
or more in a financial year; and to the managing director, director, partner, trustee, author, founder,
karta, chief executive officer, principal officer or office bearer or any person competent to act on
behalf of such person. However, corresponding rule 114 of the Rules does not provide the time line
by which such person may apply for PAN allotment. Therefore, rule 114 of the Rules is proposed to
be amended to provide time line by which a person referred to clause (v) and clause (vi) of subsection
(1) of section 139A of the Act may apply for PAN allotment.

3. Further, vide Finance Act, 2018, clause (c) of Explanation to section (8) of section 139A of
the Act has been amended to provide that “permanent account number under the new series” means
a permanent account number having ten alphanumeric characters. Since, the said section earlier
provided that the PAN shall be issued in the form of a laminated card, an amendment in rule 114 of
the Rules is proposed to empower Principal Director General/Director General of Income Tax
(Systems) to specify the manner in which PAN shall be issued.

4. In view of the above, it is proposed to amend the Income-tax Rules, 1962 so as to make
necessary amendments in rule 114 of the Rules and PAN application Forms (Form No.49A and
49AA).

5. The draft proposal is as under:
“2. In the Income-tax Rules, 1962:__
“(I) in rule 114, in sub-rule (3), after clause (iv), following clauses shall be inserted, namely: __
‘(v) in the case of a person, being a resident, other than an individual, which enters into a financial
transaction of an amount aggregating to two lakh fifty thousand rupees or more in a financial year
and which has not been allotted any permanent account number, on or before the 31st day of May,
immediately following the financial year in which such transaction is entered into;
(vi) in the case of a person, who is the managing director, director, partner, trustee, author, founder,
karta, chief executive officer, principal officer or office bearer of the person referred to in clause (v)
or any person competent to act on behalf of the person referred to in clause (v) and who has not
been allotted any permanent account number, on or before the 31st day of May, immediately
following the financial year in which such transaction is entered into.’;

(II) in rule 114, in sub-rule (6):-
‘(i) for the words, brackets and figure “or intimation of Aadhaar number in sub-rule (5)”, the words,
brackets and figure “, intimation of Aadhaar number in sub-rule (5) and issue of permanent account
number” shall be substituted;
(ii) for the words “and intimation of Aadhaar number”, the words “, intimation of Aadhaar number
and issue of permanent account number” shall be substituted.’;
(III) in Appendix II, in Form number 49A and Form number 49AA, for column number 6 and
entries relating thereto, the following item shall be substituted, namely:-

(In case no option is provided then PAN card will be issued with father’s name except in case
where father’s name is not furnished and mother is the single parent. In such cases mother’s name
will be printed on PAN card)

Π           Father’s name      Π        Mother’s name (Please tick as applicable)’.”

6. The comments and suggestions of stakeholders and general public on the above draft
notification are invited. The comments and suggestions may be sent electronically by 17th
September, 2018 at the email address, ts.mapwal@nic.in.

(Dr. T. S. Mapwal)
Under Secretary (TPL-IV)
Tel: 011-23095471
Email: ts.mapwal@nic.in

Download Notification

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