Can Having Two PAN Cards Lead to a Penalty of Rs. 10,000? Learn How to Avoid and Surrender a Second Allotted PAN
In the realm of tax compliance, the possession of multiple PAN ( Permanent Account Number ) cards has emerged as a potential pitfall, inviting penalties and legal repercussions. Despite unintentional acquisition, the possession of more than one PAN could result in a fine of Rs. 10,000, according to the Income Tax Department . This article offers a comprehensive guide on how to identify, rectify, and surrender additional PAN cards to evade penalties.
# Understanding the Issue
The issuance of multiple PAN cards to an individual often occurs inadvertently due to various reasons, including administrative glitches or genuine oversights. Individuals, unaware of their duplicate status, might find themselves inadvertently holding more than one PAN.
# Common Causes of Duplicate PANs
- Repeated Applications: Delays or misinterpretation during the initial PAN application might lead individuals to reapply, unwittingly obtaining multiple PANs.
- Modifications to Details: Name changes, particularly after events like marriage, often prompt individuals to apply for a new PAN without cancelling the previous one.
- Malicious Intent: In more severe cases, some intentionally procure multiple PANs to deceive the government or evade taxes, constituting serious legal offenses.
Possessing multiple PAN cards, regardless of intent, can result in penalties under Section 272B of the Income-tax Act, 1961. To mitigate this, individuals must promptly surrender duplicate PAN cards.
# Surrendering Duplicate PAN Cards
- Online Method: Complete the PAN Change Request application form, specifying the PAN to be retained and those to be cancelled. Submit the form with relevant PAN card copies.
- Offline Method: Fill Form 49A for PAN Change or Correction , noting the PAN to be surrendered. Submit this form to the nearest UTI or NSDL TIN facilitation facility along with a letter to the Assessing Officer containing essential details and a copy of the duplicate PAN.
Avoiding penalties related to multiple PAN cards necessitates proactive steps from individuals. Whether stemming from inadvertent actions or intentional deception, surrendering additional PANs through a straightforward process—online or offline—is crucial to compliance and penalty evasion.
The repercussions of holding more than one PAN extend beyond intentional infractions, encompassing inadvertent possession as well. Understanding, identifying, and surrendering duplicate PAN cards is pivotal for individuals to stay compliant with tax regulations and evade penalties.