A PAN card (Permanent Account Number Card) is essentially a document for your identification that is issued by the Indian Income Tax Department for citizens of the country who pay taxes. It is a ten-digit alphanumeric identifier that is unique to each individual or company and is required for filing income tax returns, processing certain financial transactions, and other official procedures in India. Serving as one of the primary proof of identity, a PAN card is an incredibly important piece of documentation that a citizen must possess. It is required for many financial transactions that one has to indulge in, such as opening a bank account, buying insurance, investing in mutual funds, and more. It is also used for tracking and monitoring taxable income, transactions, and other financial activities.
Although the law states that an individual is only permitted to have one PAN card, it is not uncommon for citizens to have more than one PAN card. Such instances are very often observed and the government has regular interactions with individuals who defy the legal regulations established.
Table of contents
- Why Do People Have Multiple PAN Cards in India?
- How Can an Individual Fix the Issue of Possessing a Dual PAN Card?
- What Is the Penalty for Having Several PAN Cards?
- Why Do People and Corporations Have More Than One PAN Card?
- What Happens if an Individual Has More Than One PAN Card?
- What Are the Consequences of Having Many PAN Cards?
- How to Give Up Dual PAN Cards
- Frequently Asked Questions (FAQs)
Why Do People Have Multiple PAN Cards in India?
In India, the issue of possessing multiple PAN cards is rather common, as they provide a convenient and secure way to manage financial transactions. The ease and reliability that PAN cards offer in maintaining accurate records of a person’s financial activities make them an attractive choice for many. Moreover, the fact that PAN cards are linked to a person’s identity makes them a key tool for taxation and other related financial activities. It is also a common practice for people to possess multiple PAN cards, as it allows them to open multiple bank accounts and other financial instruments with ease. Thus, possessing multiple PAN cards provides the added convenience of managing finances in a secure and efficient manner, while also helping safeguard one’s identity.
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How Can an Individual Fix the Issue of Possessing a Dual PAN Card?
The predicament of possessing a dual PAN Card may not be an easy problem to fix, but it’s certainly not an impossible one either. The first step is to contact the Income Tax Department and inform them of your situation. They will provide you with the necessary assistance and guidance on how to go about rectifying the problem.
The second step is to complete and submit the PAN Card cancellation form. You will need to provide a valid proof of identity, valid residential address, and a proof of PAN Card to be able to do this. Once the form is submitted, the department will initiate the process of cancellation and you will be notified of the same.
The third step is to apply for a new PAN Card. You will need to fill in the relevant forms and provide the required documents. Once the application is processed, you will receive the new PAN Card and the old one will be cancelled.
So, there you have it! With a bit of patience, dedication, and the right guidance, you can easily fix the multiple PAN Cards issues.
What Is the Penalty for Having Several PAN Cards?
In a breach of the law, possession of multiple PAN cards is strictly prohibited and shall be subject to heavy penalties. As per Section 272B of the Income Tax Act, 1961, those found guilty of having multiple PAN cards shall be subject to a penalty of Rs. 10,000. Citizens of India should be mindful of the law and abide by it for the benefit of all.
Why Do People and Corporations Have More Than One PAN Card?
One might be tempted to risk the illegality of possessing more than one PAN card due to circumstances of necessity. A closer inspection of the situation reveals a variety of reasons as to why someone might fall into this trap. For example, they may require an additional card to open multiple bank accounts, to obtain certain benefits or credits, or to keep their finances separate from those of their spouse. Others may find themselves in need of a second PAN card due to a lost or stolen card, or to conduct business under a different name. Whatever the reason, the person should be aware that the consequences of being caught with multiple PAN cards can be severe.
Lack of Awareness
A lack of knowledge or awareness of the consequences that come with having multiple Permanent Account Numbers (PAN) cards, can often lead to individuals unknowingly possessing more than one. Without understanding how to correct mistakes on the existing card, many will instead opt for a new one.
Multiple Applications for PAN Card
On occasion, applications for a PAN card can take longer than expected, leading some to apply multiple times without realising they have done so. This can result in having two PAN cards in their possession.
Applying for a New PAN Card Post Marriage
When women change their surname after marriage, they often apply for a new PAN card rather than seeking a correction of their surname on the existing one.
Ignorance of NRIs
Non-Resident Indians (NRIs) who visit the country, may apply multiple times for a PAN card when the maximum transaction allowance without one is exceeded. Upon returning after a long period, they may forget they already have one and apply again, resulting in having multiple PAN cards.
To Evade Taxes
Finally, some individuals may use the possession of multiple PAN cards as an opportunity to cheat the government regarding their earnings, in an attempt to evade taxation.
What Happens if an Individual Has More Than One PAN Card?
One might ponder why individuals and entities may possess more than one Permanent Account Number (PAN). While some may not be aware of the rules regarding PAN cards, there may be those who acquire multiple PAN cards with the intention of deceiving the government. What then, is the consequence for having multiple PAN cards, when it is deemed illegal by law?
Penalties Imposed
An individual or entity found to be possessing multiple PAN cards can face severe penalties as per Section 272B of the Income Tax Act, 1961. A fine of Rs. 10,000 is imposed on any individual or entity who is guilty of having more than one PAN card.
Liable for Prosecution
Anyone found to be using multiple PANs with the intent of evading taxes can face legal repercussions under income tax laws. These serious implications serve as a warning to those who attempt to save money by avoiding taxes.
Flawed Financial Processing
Having more than one PAN card can be detrimental to one’s financial process. As the PAN card is required for filing income tax returns, opening bank accounts, etc., having multiple PAN cards can create complications for applicants.
Bad Credit Profile
Banks generally view individuals and entities with multiple PAN cards as fraudsters. They are hesitant to provide loans to such people due to doubts about their ability and intention to repay. Banks often blacklist them, leading to huge credit problems even when the CIBIL score is good.
What Are the Consequences of Having Many PAN Cards?
The possession of more than one PAN card is a criminal act which carries serious repercussions. The authorities impose a hefty fine of up to Rs.10,000 as punishment and, in some cases, even imprisonment. The Income Tax Department may take stern measures such as the freezing of bank accounts or the permanent deactivation of the offending PAN card, thus rendering it useless and placing the holder in a precarious situation.
How to Give Up Dual PAN Cards
If the dilemma that you find yourself in is that of having multiple PAN cards, or even a duplicate PAN card, then the only viable solution is to surrender them. You can easily and conveniently begin the process of surrendering these additional PAN cards either through the online or offline mode.
Step 1: Visit the Protean eGov Technologies Limited website (https://www.protean-tinpan.com/) and click on the ‘Services’ tab.
Step 2: Select the ‘PAN’ page and click on the ‘Apply online’ feature.
Step 3: Choose ‘Changes or Correction in existing PAN Data/Reprint of PAN Card (No changes in existing PAN Data)’ in the ‘Application Type’ tab.
Step 4: Fill in the details asked for under the ‘Applicant Information’ tab and ‘Submit’ the details.
Step 5: After submission, a token number is displayed. Click on the ‘Continue with PAN Application Form’ tab.
Step 6: Select ‘Submit scanned images through e-sign’ and enter the details of the PAN number that one wishes to retain.
Step 7: Provide the details that are asked for and click ‘Next’.
Step 8: Fill in the details regarding ‘Address for Communication’ and proceed to ‘Mention other Permanent Account Numbers (PANs) if any, inadvertently allotted to you’ tab.
Step 9: Provide the details of the extra/duplicate PAN cards that one wants cancelled or surrendered and click ‘Next’.
Step 10: Enter the details of the documents enclosed to support the application with scanned copies of the applicant’s photo, signature and documents.
Step 11: Sign the declaration on the form and verify the information provided.
Step 12: Click ‘Submit’ and an acknowledgment is provided as proof of surrendering additional PAN card.
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Frequently Asked Questions (FAQs)
Is Having 2 PAN Cards an Offence?
Yes, having more than one PAN Card is a punishable offence by law and you shall be dealt with if found to be carrying more than one PAN Card.
What are The Consequences of Having 2 PAN Cards?
Having two PAN cards is a criminal offence under the Income Tax Act and can lead to severe penalties and fines. Penalties may include imprisonment for up to 2 years and a fine of up to Rs. 10,000. Additionally, the Income Tax Department may also take stern action such as prosecution and attachment of assets.
Can PAN Cards be Blacklisted?
No, PAN cards cannot be blacklisted. PAN cards are issued by the Income Tax Department and are only used for identification and taxation purposes. But they can be blocked.
Can 2 PAN Cards Have The Same Email ID?
No, it is not allowed to have the same email id for two PAN cards. Each PAN card must have a unique email id.
