A remarkable step has been taken by the Income Tax Department regarding the PAN Card norms in order to tighten the situation for the individuals running shell companies. The department has also revised the lower limit of the PAN Card holder’s turnover and changed it from INR 5 Lakh to INR 2.5 Lakh. These new norms will be mandated from 5th December 2018. It means that the non-individual businesses crossing the new limit set by the IT department have to apply for a new PAN Card before 31st May 2019.
The department has also mandated holding a pan card for the Managing directors, directors, trustees, partners, authors of trusts, etc by the end of May 2019. PAN Card is an effective device that is used to track the earnings of a person crossing the taxable limit of INR 2.5 Lakh per annum.
The norms also suggest that the sub-registrars will be unable to register properties without a valid PAN. It has been mandated via the Annual Information Report. It is valid for mutual funds investment, real estate investment, etc.
The last year witnessed a remarkable step from the Government where more than 2 Lakh shell company accounts were frozen. The individuals hiding behind the shell companies suffered a hard time and will have to follow the new rules to be mandated before the stipulated time. PAN will be used to track and locate the devious activities such as bribery, illegal possession, etc and will be harshly penalized by the government.