PAN Card: Having Two PANs can lead you to a Penalty of Rs.10000; Know how to Avoid and Surrender Second PAN Allotted

Every taxpayer is assigned a PAN (Permanent Account Number). A person cannot have more than one PAN, according to the Income Tax Department. When an individual has previously been assigned a PAN, he or she cannot apply for another.

It could be possible for an individual to possess two PANs after making dual applications or when making a correction to an existing PAN.

Not everyone who has multiple or duplicate PAN cards has nefarious motives; many are ignorant of their duplicate status. Identifying typical events that result in duplicate PANs is critical.

Repeated Applications:

Individuals who do not get their PAN after the initial application may accidentally reapply, resulting in the acquisition of several PANs. It is best to be patient because delays are possible. In circumstances of duplicate applications, the outsourcing of PAN issuance has raised the potential of misinterpretation.

Modifications to the details:

With name changes becoming more popular, people who change their names during events such as marriage may apply for a new PAN without deleting the previous one, resulting in several PANs. This is especially frequent among newly married women who change their names or residences.

Malicious Intention:

Some people purposefully file for several PANs in order to deceive the government or evade taxes, which constitutes major offenses punishable by law.

Consequences of Multiple PAN Cards

“A penalty of Rs.10,000 is liable to be imposed under Section 272B​ of the Income-tax Act, 1961, for having more than one PAN,” the Income Tax Department has mentioned on its website. Hence, if an individual possesses more than one PAN, then they will have to immediately surrender the duplicate PAN.

Note: Individuals can download an electronic PAN card to possess a soft copy.

How to apply for Cancellation of PAN

Online Method

Fill up and submit the PAN Change Request application form, making sure to include your present PAN at the start. In item 11, include any other incorrectly assigned PANs and send related PAN card copies for cancellation along with the form.

Offline Method

Step 1: Fill out Form 49A for PAN Change or Correction, noting the PAN number to be surrendered. Fill out the form and return it to the nearest UTI or NSDL TIN facilitation facility. Keep a copy of the acknowledgment for future use.

Step 2: Create a letter to the Assessing Officer in your area. Find your Jurisdiction Officer (Know your Jurisdiction Officer) at the Income Tax E-filing Portal. Include personal information such as your complete name on your PAN card, date of birth (or date of incorporation for corporations or businesses), PAN card number to be maintained, and details of the duplicate PAN card being surrendered. Keep the acknowledgment you got.

Step 3: Include a copy of the duplicate PAN to be surrendered with the acknowledgment acquired from the NSDL TIN facilitation center in Step 1 when submitting the letter from Step 2.

Individuals should proactively surrender additional PANs through a simple approach to avoid fines. Repetitive applications, information alteration (such as name changes), and, in certain situations, malevolent intent are all common causes of duplicate PANs.

The consequences of having several PAN cards are not restricted to intentional infractions; inadvertent possession is also punishable. Individuals can relinquish extra PANs online or offline by following the straightforward method.