PAN rules change from April 1: How to apply, when to use PAN Card under new guidelines

New PAN rules from April 1: From April 1, several changes for the PAN (Permanent Account Number) Card will come into effect, including the way you can apply for it and the way you use it. Getting or updating the PAN Card will now get more rigorous, while the usage of it will also change when it comes to insurance policies or purchasing of vehicles and properties. 

The authorities have urged citizens to complete their PAN-related formalities before the deadline. If you need to apply for new PAN cards or update the existing one, you can do so through the portals of Protean (formerly NSDL eGov), UTI Infrastructure Technology and Services Limited (UTIITSL), or the Income Tax Department’s e-filing website.

PAN CARD APPLICATION CHANGES

From April 1 onwards you will need additional documents to apply for PAN. If you apply by March 31st, only the Aadhaar Card will suffice. From April 1 onwards, you will need to provide documents like the following ones among others for PAN application:

• Birth certificate
• Voter ID
• Passport
• Driving licence
• Matriculation certificate
• Affidavit issued by a magistrate

Moreover, the PAN name will be registered as per the name on your Aadhaar card.

The existing forms will be replaced by new PAN application forms. 

PAN CARD USAGE CHANGES

When it comes to the usage of PAN card, there have been changes across various user cases. 

DEPOSITS/WITHDRAWALS: You will need to provide PAN Card details if your deposits or withdrawals amount to Rs 10 lakh in a year, as opposed to the current rule where PAN Card was required for Rs 50,000 cash deposits in a day. 

BUYING VEHICLES: Currently PAN Card details are required for almost all vehicle purchases but from April 1 if the value of the vehicle is over Rs 5 lakh, only then PAN Card details will be required. 

INSURANCE POLICIES: Currently PAN Card is required if annual premium exceeds Rs 50,000 but according to the new rules PAN Card will be needed at the beginning of the insurance relationship regardless of the premium amount. 

PROPERTY TRANSACTIONS: At present, the PAN Card is needed if the property value exceeds Rs 10 lakh, which will be raised to Rs 20 lakh from April 1.

BILLS: The PAN Card is currently needed for cash bills for hotels, restaurants and events above Rs 50,000, which will be increased to Rs 1 lakh from April 1.