The Indian Income Tax Department gives each individual a Permanent Account Number (PAN). The department says that one person can’t have more than one PAN. According to the Income Tax Act, 1961, having more than one PAN card can get you in trouble with the law.
Section 272B of the Income Tax Act, 196 says that people who have more than one PAN can be fined Rs. 10,000. The Income Tax Department has made this clear. It is discouraged that people get multiple PANs because of the penalty. People who owe taxes need to be aware of this punishment and give up any duplicate PAN cards they have right away.
Scenarios Leading to Duplicate PAN Cards
Some people purposely ask for multiple PANs to trick the government or avoid paying taxes, but many people end up with duplicate PAN cards without realising it for a number of reasons, including:
- Repeated Applications: If people don’t get their PAN card right away after the first application, they may apply again without realizing it, which can lead to them getting more than one PAN. During the application process, it’s best to be patient.
- Changing Details: People whose names change, like when they get married, can apply for a new PAN without canceling the old one. People who are newly married and change their names or places may end up with more than one PAN.
- Bad Intention: Some people ask for multiple PANs on purpose to trick the government or avoid paying taxes. Such acts are serious violations that are punished.
Consequences of Multiple PAN Cards
The government strictly punishes people who have more than one PAN card, whether they did it on purpose or not. Section 272B of the Income Tax Act has a punishment of Rs. 10,000 for getting duplicate PAN cards. This keeps people from doing it. People need to be aware of these effects and take the steps needed to avoid violating these rules by accident.
How to Surrender a Second Allotted PAN Card
If you were given two PAN cards, you should give up the second one because it is against the law to have more than one in your possession. If caught, the Income Tax Department can get court action or fine the person. Not having one PAN is punishable by Rs 10,000. The steps to give up the extra PAN are as follows:
Online:
- Fill out the PAN Change Request form and send it in. At the top of the form, write down the PAN you are currently using.
- In item 11 of the form, you should list all the other PANs that were mistakenly given to you, and you should send in a copy of each PAN card along with the form to remove them.
Offline:
- Step 1: Get Form 49A, which is an application form for a PAN change: You can get the PAN Change Request form from the websites of UTI Infrastructure Technology and Services Limited (UTIITSL) or Protean (formerly NSDL eGov). You can also use the UMANG app, which has services linked to PAN cards.
- Step 2: Fill out the application form and send it in: Fill out the PAN Change Request form with all the correct information. You can fill out the form and send it in either online or by mail. If you choose to fill it out by hand, you must bring the form and all the required papers to any National Securities Depository Limited (NSDL) office.
Step 3: Give the required paperwork: Make sure you send in the needed documents along with the application form. The PAN card you want to give up is one of these papers. It is important to include a copy of your PAN card with the withdrawal form.
Can a PAN Become Inoperative?
If you haven’t linked your PAN and Aadhaar by June 30, 2023, your PAN will stop working. You can, however, make it work by adding your PAN and Aadhaar at a later time, as long as you pay the Rs. 1,000 fine.
You will not be able to get an ITR refund or use a number of other important banking services if your PAN stops working. If your PAN doesn’t work, you may also have to pay extra taxes in the form of TDS.
According to a CBDT circular, “it shall be deemed that he has not furnished, intimated or quoted that permanent account number” if a person’s PAN changes. Some of the services that will not work if your PAN stops working are listed below:
- The person will not be able to make their income tax return with a PAN that doesn’t work.
- Unprocessed returns will not be dealt with.
- Unusable PANs cannot be used to get returns that are still pending.
- Unfinished business, like fixing mistakes in tax reports, can’t be finished while the PAN is dead.
- As soon as PAN stops working, tax will have to be taken out at a higher rate.
To get your inactive PAN working again, go to the official website and request to link your Aadhaar with your PAN. After putting in your information, click on CHALLAN NO./ITNS 280 to send the Aadhaar-PAN linking request.
To enter the PAN, choose the payment method and enter the full address along with the assessment year (AY).
How to link PAN with Aadhaar step by step guide
You can connect your PAN to your Aadhaar by doing the following:
- Go to the official website for e-filing your income tax return.
- By selecting the “Link Aadhaar” option from the “Quick Links” section, proceed..
- Type in your PAN and Aadhaar number.
- Press the “Validate” button.
- Type in your Aadhaar card number and hit the “Link Aadhaar” button if the information is correct.
- A message will pop up to let you know that your Aadhaar card and PAN card have been linked correctly.
You can also link your PAN with Aadhaar offline by filling out Form 49A for Change or Correction in PAN, writing down the PAN number that you want to give up, and taking the form to the nearest UTI or NSDL TIN assistance center.
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