New Delhi, December 5: Individuals will now be able to get their Permanent Account Number (PAN) in just four hours as the tax department is planning to bring several reforms in the coming year. The new simplified process is aimed at faster processing of returns and refunds among other services. The PAN card is a ten-digit alphanumeric number issued by the Income Tax Department. It is an important document for tax assessment and is mandatory for opening bank accounts and filing of income tax returns (ITR). Several reforms that are bound to come into effect include pre-filled returns that would need to be endorsed by an assessee. Reports inform that the allotment of PAN in four hours is expected to start within a year. PAN Application: Income Tax Department Makes Mentioning Father's Name Non-Mandatory For Applicants.
According to a report by TOI, Sushil Chandra, chairman of the Central Board of Direct Taxes (CBDT) was quoted saying that the tax department is making utmost use of technology and automation in several areas such as pre-payment of taxes, the filing of returns, refunds, case selection and finalisation of cases for scrutiny. The CBDT Chairman added saying that the returns form has also been simplified and processing of refunds has been made easier to facilitate ease of doing business. PAN Card Online: How To Apply For New PAN Card, Make Corrections, Track & Download it.
The report further informs that with the new rule in place, the assesses no longer have to be in fear of scrutiny as the process has now been technology-enabled. “Less than 0.5% of cases have been brought under scrutiny which should provide comfort to assesses,” the Chairman was quoted in the TOI report. It must be noted that PAN cards are mandatory for any transaction above Rs 2 lakh and for a host of other activities like the opening of a bank account and as identity proof. How to Link Aadhaar Card to PAN Card in Easy Steps: Know Online and Offline Ways to Link PAN Number and Aadhaar Number.
The number of people filing income tax returns has increased by 50% to 6.08 crore so far in the assessment year 2018-19 compared to the year-ago period, Chandra said. However, he did not mention the exact date when the filings touched 6.08 crore. While addressing the meet, Chandra informed that there are nearly 70 countries which has an automatic exchange of information. He added saying India too has started the process and if any person has not given detail about any foreign assets or foreign bank account in his income tax return, strict action will be taken by the department.
The CBDT through a notification has amended the income tax rules and said the new rules would come into effect from December 1. The CBDT in a notification earlier this week informed that, a person, who enters into a financial transaction of an amount of Rs. 2.50 lakh or more in a financial year, also needs to apply for a PAN card on or before the May 31, 2019.