PAN Rule Change: PAN will become more mandatory from April 1, many transactions will not be possible without it..

While every salaried individual and person involved in financial transactions already utilizes their Permanent Account Number (PAN), its significance is set to increase even further starting April 1st. The new Income Tax Act, incorporating several amendments, will come into effect from the new financial year, placing even greater emphasis on the importance of the PAN. According to information provided by the Income Tax Department, conducting various types of financial transactions without a PAN will become difficult after April 1st.

The government asserts that the new Income Tax Act will bring greater convenience to millions of taxpayers across the country. The benefits of this legislation will extend not only to salaried employees and business owners but also to the middle class. As part of these amendments to the Income Tax Act, corresponding changes have also been made to the regulations governing PAN cards. Consequently, several changes regarding the usage of PAN cards are being implemented effective April 1st. It will now be mandatory to use a PAN for various types of transactions; without a PAN, these transactions cannot be completed.

For Hostel and Education Allowances
Under the new Income Tax Act, the government has increased the education allowance for children. This implies that individuals will now be eligible for higher tax exemptions on the tuition fees paid for their children. This allowance has been raised from ₹100 per month to ₹3,000 per month. Similarly, the allowance for hostel expenses has been increased from ₹300 per month to ₹9,000 per month. While this exemption is applicable for a maximum of two children per family, it will significantly expand the scope of available tax benefits. However, to claim this benefit regarding fee payments, you must use your PAN; without a PAN, this tax exemption will not be granted.

PAN Will Be Mandatory Here As Well
If you are claiming exemptions under the old tax regime, you will be required to submit supporting documentary evidence to substantiate your claims. If you have paid rent exceeding ₹1 lakh during the financial year, you must provide your landlord's name, address, and PAN details to claim tax exemptions under the House Rent Allowance (HRA).
You will also require a PAN to claim tax exemptions on Leave Travel Concession (LTC) and home loans when filing your Income Tax Return (ITR).
Furthermore, a PAN is now mandatory for conducting transactions exceeding ₹10 lakhs.
A PAN is also required for purchasing vehicles valued at over ₹5 lakhs.
If you book accommodation at a high-end hotel, you will be required to provide your PAN details.
A PAN is also mandatory if you are buying or selling property valued at over ₹20 lakhs.

Obtaining a New PAN Will Not Be Easy
Following the implementation of new income tax rules on April 1st, obtaining a new PAN will no longer be a simple process. Until now, a PAN could be generated solely using an Aadhaar card; however, starting from the new financial year, it has become mandatory to submit a birth certificate alongside the Aadhaar card. Moreover, the newly issued PAN cards will no longer display the user's name. The PAN card will feature only the unique number and other essential details, but the name will be omitted. This measure is being implemented to safeguard against fraud and cybercrime.

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