INCOME TAX DEPARTMENT TO IMPOSE PENALTY ON HOLDING OF TWO PAN CARD

INCOME TAX DEPARTMENT TO IMPOSE PENALTY ON HOLDING OF TWO PAN CARD

If anyone is holding two PAN Card, the Income Tax department will levy a penalty of Rs. 10,000/- for breaching the rule.


Overview

Permanent Account Number or PAN is one of the important identity documents. The Income Tax Department issues the PAN card consisting of a unique 10-digit alphanumeric number. It is mandatory for each and every person to have a PAN number.
 

A person can only hold one PAN number. Holding more than 1 PAN is considered as an illegal activity. And as per Section 272B of the Income Tax Act, if a person has two PAN Cards, then he would have to pay a penalty up to Rs 10,000.
 

Also, as per the IT rules, two individuals or entities cannot hold the same PAN number.
 

Reason for holding multiple PAN number

  1. To apply for a loan due to bad credit history
  2. To reduce the tax liability by splitting the income.
  3. If someone has lost their PAN card then instead of making an application to issue duplicate cards, they end up applying for a new PAN Card.
  4. Also, after the marriage, some women in order to change their surname, they apply for a fresh PAN card instead of making an application to update the PAN card. In some instances, unintentionally also people end up holding more than 1 PAN card.  
     

Penalty

According to section 272B of the Income Tax Act, if a person holds multiple PAN cards, then they have to pay a penalty up to Rs. 10,000/-. The penalty is imposed by the Income Tax Department.
 

How to avoid a Penalty?

If the person has more than 1 PAN number, then in order to avoid the heavy penalty it is better to surrender the additional PAN number, which the person does not want to use.
 

Steps to surrender the multiple PAN card

The following is the step to surrender the multiple PAN card:

A.  Online Process
  • Go to the NSDL website. There, from the “Application Type” tab, select the “Changes or Correction in existing PAN Data or Reprint of PAN Card (No changes in existing PAN Data)” option.
     
  • Fill the form and then click the ‘Submit’ button. After submission, the request will be registered and you will receive a token number. The same will be sent to the email address mentioned in the application. For future reference, note the token number.
     
  • Then continue by clicking the “Continue with PAN Application Form” button.
     
  • A new webpage will be open, and on the top of the new webpage, select the option “Submit scanned images through e-Sign”. There mention the PAN number that you want to keep. Fill out the requisite details in the form. Also, mention the additional PANs that you want to surrender, and after that click the ‘Next ‘button to proceed.
     
  • Then select the proof of identity, residence proof, and date of birth.
     
  • Also, upload the scanned images of your photograph, signature, and the requisite documents. In case of surrender of PAN, sign the acknowledgment receipt
     
  • Then after submitting the details, you will get a preview of your application form. Check your details and make necessary edits if required, then proceed to make the payment.
     
  • Once the payment is successful, you will receive an acknowledgment. Save and get a print of the acknowledgment copy for reference and also as proof.
     

The applicant then is required to send a printed copy of the acknowledgment to NSDL e-Gov along with two photographs. 
 

B.  Offline process:

In the offline process, multiple PAN cards can be submitted by filling:

  • Form 49A for Change or Correction in PAN and the same can be submitted to the nearest UTI or NSDL TIN facilitation center. 
  • The person should also write a letter to the assessing officer under whose jurisdiction your tax is filed. 
  • The person has to mention personal details like the name, date of birth, PAN card numbers that need to be surrender. 
  • Then send the letter to the nearby tax office. 
     
Edited by Minu Mishra

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