To conduct any type of financial transaction in India, even if it’s as minor as opening a bank account, one must have their PAN card with them as it is a legit proof of your identity to be a part of Indian financial system. Having a PAN is mandatory for every individual and even organization willing to carry out financial transactions in the country. But having more than one PAN card in the name of same person or entity can bring PAN penalty to the holder.
As per Section 139A of Income Tax Act, 1961 a person can hold only one PAN. This section deals with the eligibility to apply for PAN, when an individual is supposed to quote it and so on. The seventh provision of this section states, “No person who has already been allotted a permanent account number under the new series shall apply, obtain or possess another permanent account number.”
Situations of Possessing Duplicate PAN Card
It might happen that individuals unintentionally have possessed two PAN cards without being in his/her knowledge. So, it is important to know under what circumstances a person cannot possess duplicate PAN card. Here are some of the situations in which a person cannot have more than one PAN card:
- Multiple applications by individual: Many of the individuals may have applied for the PAN through online method and have submitted the application form but due to some technical issues it might get rejected by online database. In this case, person may go for offline mode again and start filling up the form and get it submitted to the concerned authority. If, by any chance, the concerned authority receives the latter application form and the former one and issues 2 different Personal Identification Number to the same individual, it will be counted under multiple applications. In this case, individual is advised to surrender one of their PAN cards to the authorities.
- Change in PAN details: This might come in two situations i.e. Address and Name. It is observed that after marriage, women tend to change their surname and ultimately apply for new PAN. It results in having more than one PAN.
On the other hand, In the case of change in address it is not mandatory for a PAN holder to get it rectified but it is advisable that only the corresponding address should be changed. One should not apply for the fresh PAN application rather gets it change in the existing PAN through website or offline method.
- Intent of the PAN Holder: If any of the individual intentionally applies for duplicate PAN card for the purpose of tax evasion, defrauding the tax agencies or government comes under this category. Misusing PAN for personal benefits may result in penalty and other consequences.
PAN Penalty for Duplicate/Multiple PAN Cards
According to Section 139A (7) of Income Tax Act- No person who has already been allotted a permanent account number under the new series shall apply, obtain or possess another permanent account number.
According to Section 272B of Income Tax Act- The imposition of the fine of Rs. 10,000 upon failure to comply with section 139A and moreover any person when asked to quote his Permanent Account Number and quotes false Permanent Account Number shall also be fined by the Assessing Officer.
How to Surrender Additional PAN Cards?
It is quite obvious that many of the individuals might have applied for the additional PAN cards intentionally or unintentionally. To avoid any penalties or consequences, one must surrender their additional PAN either manually or online.
There are two ways through which any individual can surrender their additional PAN cards:
- Online Surrender: For individuals who want to surrender their additional PAN through online mode need to visit the official website of Income Tax Department of India at
(http://www.incometaxindia.gov.in/Pages/default.aspx). Login your account and enter all the compulsory details required such as Name, Contact number, DOB, Father’s name and address. Further, individual has to mention the PAN which is to be surrendered and which has to be retained in the application form. After submission individual will receive an acknowledgment which can be used for proof of surrendering the additional PAN.
- Manual/Offline Surrender: Individuals who want to surrender PAN card through offline mode need to fill the PAN correction form and submit it to the assessment officer under whose jurisdiction individual falls. In PAN correction form under column 11, individual need to mention the PAN which is to be surrendered and which has to be retained. A copy of such PAN needs to be submitted along with the application form. After that acknowledgment slip has to be retained for future references which will act as a proof of surrender of PAN.
It is highly recommended to individuals or non-individuals not to carry an additional PAN as it can attract several consequences and penalty against it under Income Tax Act. In order to avoid this penalty, follow the guidelines of Income Tax Act and execute accordingly. Minimizing this activity will help in carrying out best financial transaction and ultimately development to the nation.