Emilie Meyer
In India, a PAN (Permanent Account Number) card is a crucial form of identification. It is a unique, 10-digit alphanumeric identity proof issued by the Income Tax Department. However, it is illegal for an individual to possess more than one PAN card. Holding multiple PAN cards can be used for tax evasion, hiding income, or fraudulent activities. As a result, penalties and legal consequences may be imposed on individuals with multiple PAN cards. Therefore, it is essential to surrender any additional PAN cards to avoid these repercussions and maintain a transparent financial record.
| Characteristics | Values |
|---|---|
| Allowed number of PAN cards | One |
| Penalty for possessing more than one PAN card | Up to Rs. 10,000 |
| Purpose of PAN card | Identity proof |
| PAN card issuer | Income Tax Department |
| PAN card type | 10-digit alphanumeric number |
| PAN card form | Laminated |
| PAN card surrender process | Online or offline |
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What You'll Learn
It is illegal for a person to have two PAN cards
It is illegal for an individual to hold multiple PAN cards in India. The PAN, or Permanent Account Number, is a crucial 10-digit identity proof issued by the Income Tax Department. It is used to facilitate financial transactions and file income tax returns. While the purpose of the PAN is to serve as a unique identifier, some individuals may end up with more than one PAN card due to various reasons.
Firstly, individuals may apply for a new PAN card when they need to change their address or name on the card, instead of making corrections to the existing PAN. This can result in having multiple PAN cards with different details. Secondly, some people may apply for a PAN card multiple times if they do not receive it within the stipulated time or if their initial application is rejected. This can lead to multiple PAN cards being issued to the same person. Additionally, there may be cases of malicious intent, where individuals intentionally apply for a new PAN card to evade taxes or gain personal advantages.
Regardless of the reason, possessing multiple PAN cards is considered unlawful under the Income Tax Act of 1961. The Indian government has implemented strict rules to prevent tax evasion and maintain transparency in the financial system. Having multiple PAN cards can facilitate income hiding, tax avoidance, and fraudulent activities. As per Section 272B of the Income Tax Act, individuals found in possession of more than one PAN card can be charged a penalty of up to ₹10,000.
To comply with Indian tax laws and avoid legal and financial complications, it is essential to surrender any additional PAN cards. The process of surrendering a PAN card can be done both online and offline. Individuals can visit the official website of the National Securities Depositories Limited (NSDL) and select the PAN correction option to initiate the process. They will need to provide personal details, including their full name, date of birth, mobile number, email, and PAN card number to be retained. Additionally, they must mention the details of the duplicate PAN card being surrendered and submit any associated copies for cancellation.
By taking immediate steps to rectify the issue of possessing multiple PAN cards, individuals can avoid penalties and maintain a transparent financial record. It is crucial to act promptly and comply with the law to ensure a seamless resolution and prevent any negative impact on one's credit profile or legal standing.
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How to surrender a duplicate PAN card
In India, it is illegal for an individual to hold multiple PAN cards, and it may attract a penalty of Rs. 10,000. If you have a duplicate PAN card, you should surrender it. Here is how you can do it:
Online method:
- Visit the official website of NSDL (National Securities Depositories Limited).
- From the drop-down menu, click on the ''Changes or Correction in existing PAN Data/ Reprint of PAN Card (No changes in existing PAN Data)' option.
- For Category, select the option of Company, Firm, or Partnership and proceed with filling out the Form online.
- In Form 49A, enter the PAN that has to be cancelled in Item 11 of the Form.
- Submit the completed Form and print out the acknowledgement. Send this, along with the necessary documents, to the NSDL Office Address mentioned on the Form.
- Once the request has been processed, you will receive a notification.
Offline method:
- Fill up Form 49A for Change or Correction in PAN.
- Mention the PAN number to be surrendered and submit the form to the nearest PAN centre.
- You can also write a letter addressed to the Assessing Officer of your jurisdiction (You can find your Jurisdiction officer from the Income Tax e-filing portal).
- Mention your personal details such as the full name on your PAN card, date of birth (or date of incorporation in the case of companies or firms), PAN card number to be retained, and details of the duplicate PAN card being surrendered. Keep the acknowledgement received.
Surrendering a PAN card after the holder's death:
If a PAN card holder passes away, the relatives of the deceased individual are required to write a letter to the Income Tax Officer presiding over the respective jurisdiction. The letter must include the reason for surrender (the death of the PAN card holder) and the death certificate of the deceased, along with other vital information such as the Name, PAN Card Number, and Date of Birth.
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Applying for a new PAN card after marriage
In India, a Permanent Account Number (PAN) card is a crucial document for citizens and entities carrying out financial transactions and filing income tax returns. It serves as proof of identity and contains vital information such as the cardholder's name, gender, date of birth, and PAN number. While it is common for women to change their surnames after marriage and update their PAN cards, it is not mandatory. However, updating the PAN card with the new surname is advisable to avoid confusion and legal complications.
If you are a woman intending to change your surname on your PAN card after marriage, you can do so through a hassle-free process, either online or offline. Here is a step-by-step guide to help you through the process:
Online Process:
- Visit the official NSDL website or the Protean PAN website.
- Navigate to the ''PAN Services' section and select 'Apply' under 'Changes or Correction in PAN Data'.
- Complete the PAN correction form with accurate details, including your current PAN number and the corrections you want to make.
- Provide supporting documents such as a marriage certificate or gazette notification for the name change.
- Pay the applicable fee for the PAN card correction using online methods such as credit/debit cards, net banking, or demand drafts. The fee typically ranges from Rs. 66 to Rs. 1,017, depending on your residency status and delivery address.
- Use the Aadhaar OTP to authenticate your details during the correction process.
- After submitting the form, you will receive an acknowledgement receipt with a 15-digit number. You can use this number to track your PAN card correction application on the NSDL website.
Offline Process:
- Download the 'Request For New PAN Card Or/ And Changes Or Correction in PAN Data' form from the UTIITSL or Protean website, or obtain it from an IT PAN service centre or TIN-Facilitation centre.
- Print and fill out the form, selecting the 'Application Type' as 'Changes or Correction in existing PAN Data/Reprint of PAN Card', 'Category' as 'Individual', and ''Title' as 'Smt' for married women.
- Attach two recent passport-size photographs and the required document copies, such as a marriage certificate.
- Submit the completed form along with the documents to the Income Tax PAN Services Unit at the following address:
INCOME TAX PAN SERVICES UNIT (NSDL e-Governance Infrastructure Limited)
5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune-411 016
Please note that you should not apply for a new PAN card if you are only changing your surname after marriage. Instead, follow the processes outlined above to update your existing PAN card. Holding multiple PAN cards is unlawful under the Income Tax Act, and penalties may apply. If you already have multiple PAN cards for any reason, you must surrender the additional PAN cards by following the official surrender process.
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Non-Resident Indians (NRIs) and multiple PAN cards
In India, a PAN (Permanent Account Number) is a crucial form of identification that facilitates financial transactions and tax-related activities. It is a unique 10-digit alphanumeric identification code issued as a laminated card by the Income Tax Department. PAN cards are not only mandatory for Indian citizens residing in the country but also for Non-Resident Indians (NRIs) who may need to undertake financial or investment activities in India.
NRIs often find themselves in situations where they need to apply for a PAN card multiple times. This could be due to a lack of awareness about the process, or because they need to conduct transactions that require a PAN when they visit the country. When NRIs return to India after a long time, they may reapply for a PAN card, resulting in multiple PAN cards.
However, it is important to note that possessing multiple PAN cards is illegal in India and can attract penalties. The Income Tax Act stipulates that a taxpayer should have only one PAN card, and the penalty for having more than one is Rs 10,000. This applies equally to Indian residents and NRIs. Therefore, if an NRI finds themselves with multiple PAN cards, they should surrender the additional cards.
The process of surrendering a PAN card can be done both offline and online. For offline surrender, NRIs can fill out Form 49A for a change or correction in PAN, mentioning the PAN number to be surrendered. This form can be submitted to the nearest PAN centre or UTI/NSDL TIN facilitation centre. Additionally, a letter addressed to the Assessing Officer of their jurisdiction should be enclosed, detailing personal information such as name, date of birth, PAN card numbers, and details of the duplicate PAN card.
For online surrender, NRIs can visit the official website of NSDL (National Securities Depositories Limited) and select the PAN correction option. They will need to fill in their personal details, including full name, date of birth, mobile number, email, and PAN. After submission, they will receive a new token number via email, confirming the surrender process.
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Negative impact on credit profile
In India, the government has implemented strict rules to prevent tax evasion and maintain a transparent financial system. One such rule is that each individual or entity is allowed to have only one PAN card. The PAN card is one of the most important documents an individual possesses, serving as a 10-digit alphanumeric identity proof. It is essential for various financial processes, such as filing income tax returns and opening bank accounts.
Having multiple PAN cards can negatively impact an individual's credit profile. Banks and financial institutions view individuals with multiple PAN cards as potential fraudsters. They become hesitant to approve loans as they doubt the ability and intention of the individual to repay the loan. This often results in the individual being blacklisted, leading to significant credit problems even with a good CIBIL score.
Additionally, possessing multiple PAN cards can complicate financial processes and transactions. It can create issues when filing income tax returns or opening bank accounts, causing disruptions in financial activities. The use of multiple PAN cards can also lead to legal complications, with the potential for legal consequences and financial penalties.
To avoid these negative impacts, it is crucial to possess only one PAN card and take immediate steps to surrender any additional cards. This helps maintain a transparent financial record and ensures compliance with Indian tax laws.
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Frequently asked questions
No, a person should only have one PAN card. It is illegal to have multiple PAN cards and can lead to legal and financial complications.
If you have two PAN cards, you must surrender the additional card. You can do this online or offline.
To surrender your PAN card online, fill out the 'Changes or Correction in existing PAN data/ Reprint of PAN card' application on the NSDL website. Select the checkbox in the left margin under the contact details section and mention the additional PAN card you want to surrender. Upload the required documents, pay the fees and submit the form.
To surrender your PAN card offline, fill out Form 49A for 'Change or Correction in PAN', mention the PAN number you want to surrender and submit the form to your nearest PAN centre.
Possessing multiple PAN cards can negatively impact your credit profile. Banks may view you as a potential fraudster and be hesitant to approve loans. It can also lead to legal complications and identity issues.
