In this article, we will discuss what are the measures that can be taken against someone who holds more than one PAN cards
The PAN card is now mandatory to complete high-value transactions and file IT returns in India. Furthermore, most banks now ask for a PAN card as proof when individuals want to open accounts with them. The PAN card has added more security and accountability to India’s financial infrastructure. It aids the government in monitoring transactions, detecting fraudulent activities, and improving overall transparency. Hence, having a PAN card is now mandatory to start a business or carry out high-value transactions in India, but you can hold only one, as there is a penalty for multiple PAN cards. In this article, we will take a look at the rules regarding the PAN card and the penalty for multiple PANs.
Can An Individual Hold Multiple PAN Card In India?
As per our laws, every individual must have only one PAN card in their name. Similarly, entities are allowed to possess only one PAN card, and there is a penalty for multiple PAN by law. Section 139A of the Income Tax Act, 1961 makes the holding of multiple PAN cards an offence in India. This particular Section handles the regulations regarding PAN card eligibility and the uses or functions of the card. As per the seventh provision of this Section no individual should be allotted multiple permanent account numbers.
When Can Individuals Possess A Duplicate PAN Card?
In some instances, an individual might possess two or more PAN cards without being aware of it. If so, then the users must know in what cases possessing a duplicate PAN is permitted in India. Here’s a quick look at the situations under which individuals may possess more than one PAN card.
- Multiple applications: In some instances, an individual might apply for a PAN card online, and find the application rejected. They will then move ahead to apply for the same via offline means. In case both applications are later accepted, the individual might end up with two permanent account numbers. In such situations, the applicant will have to surrender one of the PAN cards to the concerned authorities.
- Change in details: Sometimes, people wish to update their PAN card and alter the details on it. They can choose to change either their name after their marriage or for any other reason. In such cases, they will have to apply for an updated PAN card. However, if cardholders wish to update their address, they may do so by altering only their corresponding address. Instead of applying for a new PAN card, individuals may change or alter their existing PAN in such cases.
- PAN Holder’s Intent: In case the individual applies for a secondary PAN card to evade tax or defraud the government, it will lead to penalties and legal repercussions.
What Is The Penalty For Multiple PAN Cards?
As per Section 139A (7) of the Income Tax Act, no one who has a PAN allotted to them may reapply for a secondary PAN card. Hence, it is illegal to possess another PAN card if you already have an active one. As per Section 27B of the Income Tax Act, failure to comply with Section 139(A) can lead to a fine as high as INR 10,000. Moreover, if an individual quote a false permanent account number when asked by an officer, they may be fined.
How Can One Surrender Their Additional PAN Cards?
In case any individual applied for and received multiple PAN cards, whether intentionally or unintentionally they may surrender one to avoid any penalties. The two ways through which individuals may surrender their PAN cards are as given below;
Online Surrender:
Individuals may surrender their PAN cards via the IT Department’s official website, which they can access through this link.
Users should log into their account and provide the required details.
They must enter their full name, DoB, father’s name, contact details, and address appropriately.
Next, the individual must mention which PAN card they wish to surrender, and which they will retain.
After submitting the form, the cardholder will receive an acknowledgement slip, which serves as proof of surrendering their additional PAN.
Manual Surrender:
Individuals can also surrender their PAN card by filling a PAN correction form and submitting it to the concerned assessment officer.
Under column 11 of the Correction form, the individual must mention which PAN card they wish to surrender, and which they will retain.
A copy of the quoted PAN card must then be submitted along with the PAN correction form.
The individual will then receive an acknowledgement slip which acts as proof of surrender of the additional PAN card.
Conclusion
Carrying additional PAN cards can lead to several legal complications and penalties. Therefore, individuals must take special care to ensure that they do not carry multiple PAN cards and surrender additional ones as soon as possible. Doing so will also help the government uphold the security and integrity of India’s financial landscape.
If you have any other queries with regards to PAN or any other regulatory matter, don’t hesitate to reach out to us. Our team of experts at Vakilsearch will assist you with your requirements.
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