Ella Walter
It is illegal for an individual to hold multiple PAN cards in India, and it may attract a penalty of Rs. 10,000 under Section 272B of the Income Tax Act. Individuals or entities found using multiple PANs to evade taxes can face legal consequences and fines. The only way to resolve a dual card problem is by surrendering the additional PAN card. If you have lost your PAN card, you can apply for a duplicate PAN card to the income tax department.
| Characteristics | Values |
|---|---|
| Can an individual apply for a PAN card twice? | No, it is illegal for an individual to hold multiple PAN cards. |
| Penalty for holding multiple PAN cards | Rs. 10,000 fine under Section 272B of the Income Tax Act. |
| Reasons for multiple PAN cards | Lack of awareness, multiple applications, applying for a new PAN card post-marriage, NRIs applying multiple times, etc. |
| Consequences of holding multiple PAN cards | Negative impact on credit profile, complications in financial processes, legal action, and penalties. |
| How to resolve multiple PAN cards? | Surrender the additional PAN card through online or offline processes. |
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What You'll Learn
It is illegal to have multiple PAN cards
It is illegal for an individual or company to have more than one PAN card, and it may attract a penalty. The PAN or Permanent Account Number is a unique, 10-digit alphanumeric identity issued by the income tax department that serves as identity proof. However, every person should only possess one PAN number. Section 139A of the Income Tax Act states that a taxpayer should have only one PAN card, and possessing more than one can result in a penalty. The government enforces strict regulations and imposes a Rs. 10,000 fine under Section 272B of the Income Tax Act to deter the ownership of multiple PANs.
Individuals or entities found using multiple PANs to evade taxes can face legal consequences in addition to fines. Banks view individuals with multiple PANs as potential fraudsters, making them hesitant to approve loans. Financial institutions doubt their ability and intention to repay loans, often resulting in blacklisting and significant credit problems, even with a good CIBIL score. Having multiple PAN cards can also lead to complications in one's financial processes, as the PAN card is essential for tasks like filing income tax returns and opening bank accounts.
There are several reasons why individuals may end up with multiple PAN cards. One reason could be a lack of awareness or knowledge about what to do when there are mistakes on an existing PAN card. Instead of correcting the existing PAN card, many individuals may unknowingly apply for a new one. Multiple applications for a PAN card is another reason for duplicate PAN cards. Individuals may reapply for a PAN card if they do not receive it within the stipulated time, resulting in them having two PAN cards simultaneously. Applying for a new PAN card post-marriage is another common reason for having more than one PAN card. Non-Resident Indians (NRIs) may also end up with multiple PAN cards due to the transaction limits for individuals without a PAN card. When NRIs return to the country after a long period, they often reapply for a PAN card, leading to the accumulation of multiple PAN cards.
If an individual possesses more than one PAN card, they must surrender the additional PAN card. The process of surrendering a PAN card can be done both online and offline. To surrender a PAN card online, individuals can visit the official website of NSDL (National Securities Depositories Limited) and select the PAN correction option from the 'Application Type' drop-down menu. They will then need to fill in their personal details, including full name, date of birth, mobile number, email, and PAN. To surrender a PAN card offline, individuals can fill out the PAN change request application form, mentioning the PAN number to be surrendered, and submit it to the nearest UTI or NSDL TIN facilitation centre.
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How to surrender a duplicate PAN card
It is illegal for an individual to hold multiple PAN cards, and it may attract a penalty of Rs. 10,000. If you have more than one PAN card, you should apply for the surrender of the additional PAN. Here is a step-by-step guide on how to surrender a duplicate PAN card:
Online Process:
- Visit the official website of NSDL (National Securities Depositories Limited).
- Select the 'PAN correction' option from the 'Application Type' drop-down menu.
- Fill in your personal details, including full name, date of birth, mobile number, email, and PAN.
- After submission, you will receive a new token number via email.
- Fill out and submit the "Changes or Correction in existing PAN data/Reprint of PAN card" application on the NSDL website.
- Under the contact details in the PAN card correction form, select the checkbox in the left margin and mention the additional PAN card that you want to surrender or cancel.
- Upload the required documents, pay the fees, and submit the form. An acknowledgment slip will be generated upon successful payment.
Offline Process:
- Fill out Form 49A for Change or Correction in PAN, mentioning the PAN number to be surrendered.
- Submit the form to the nearest UTI or NSDL TIN facilitation centre and retain a copy of the acknowledgment for future reference.
- Write a letter addressed to the Assessing Officer of your jurisdiction. Include your personal details such as full name, date of birth, PAN card number to be retained, and details of the duplicate PAN card being surrendered.
- Enclose a copy of the duplicate PAN card, along with the acknowledgment copy obtained from the NSDL TIN facilitation centre.
- Submit the letter and documents to the Assessing Officer, and keep a copy of the acknowledgment received.
It is recommended to visit the Income Tax department and complete the surrender process through consultation with the respective jurisdiction to ensure it is done correctly.
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Reasons for multiple PAN cards
It is illegal for an individual to hold multiple PAN cards in India, and it may attract a penalty of Rs. 10,000. However, some people still end up with multiple PAN cards due to various reasons, which include:
Multiple Applications
People often apply for a PAN card multiple times if they do not receive it within the stipulated time. This results in them having two PAN cards simultaneously.
Changes/Corrections in PAN
When a person wants to make corrections to their PAN card, they sometimes apply for a new one instead of requesting changes to their existing card. This results in them having more than one PAN number.
Applying for a New PAN Card Post-Marriage
Many women change their surnames after marriage and tend to apply for a new PAN card instead of requesting a correction to their existing one.
Ignorance of Non-Resident Indians (NRIs)
Non-Resident Indians visiting the country often apply for PAN cards multiple times. This is because there is a limit on the maximum transaction allowed without a PAN card, and NRIs are compelled to obtain one for transactions beyond this limit. When they return to the country after a long period, they often reapply for a PAN card, leading to multiple PAN cards.
Lack of Awareness
Some people may not be aware that it is illegal to possess multiple PAN cards, and they may obtain a second one unintentionally.
If someone has multiple PAN cards, they should surrender the additional card(s) to avoid legal consequences and financial complications.
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How to apply for a duplicate PAN card
In India, it is illegal for an individual to hold multiple PAN cards, and doing so may attract a penalty. If you have two PAN cards, you should apply for the surrender of the additional PAN card.
To apply for a duplicate PAN card, you can follow a relatively simple process online or offline. Here are the steps to apply for a duplicate PAN card:
Online Process:
- Visit the official TIN-NSDL website or the UTIITSL website.
- Navigate to the Services' tab and choose 'PAN'.
- Go to the Reprint of PAN Card section and click on 'Apply'.
- Complete the online application form by selecting the appropriate category and application type.
- Provide your personal information and select your preferred PAN application document submission method.
- Submit the form and make the required payment of Rs. 50 for an Indian address or Rs. 959 for a foreign address.
- You will receive an acknowledgment number, and you can track your application using this number.
- Your duplicate PAN card should be dispatched within 15-20 days.
Offline Process:
- Download and print the application form from NSDL's online services website.
- Fill out the form in capital letters and black ink, including your 10-character PAN number and signature.
- If you are an individual applicant, provide two passport-sized photographs with your face clearly visible.
- Gather the required documents, including identity proof, address proof, age proof, and a copy of your previously issued PAN card.
- Submit the completed form, documents, and payment to the nearest NSDL facilitation centre or UTI/NSDL TIN facilitation centre.
- You will receive an acknowledgment, and your application will be forwarded to the income-tax PAN services unit.
- You should receive your duplicate PAN card within about two weeks.
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How to check for duplicate PAN cards
It is illegal for an individual to hold multiple PAN cards, and it may attract a penalty of Rs. 10,000 under Section 272B of the Income Tax Act. Possessing multiple PAN cards can negatively affect one's credit profile, as banks may view such individuals as potential fraudsters. Therefore, if you have two PAN cards, you should apply for the surrender of the additional PAN card.
To check for duplicate PAN cards, you can visit a PAN service centre or contact NSDL/UTIITSL directly. You can also log in to the Income Tax e-Filing portal and check 'My Profile' to see your registered PAN details, including your PAN number, name, and date of birth. However, this will not show if you have multiple PAN cards.
If you have misplaced your PAN card, you can apply for a duplicate card by following a relatively simple process. You can apply for a duplicate PAN card online on the official TIN-NSDL website or by submitting a physical application at the NSDL facilitation centre. Here are the steps to apply for a duplicate PAN card:
- Download and print the "Request for a new PAN card or/and changes or corrections in PAN data" form.
- Use BLOCK letters and black ink to fill out the application.
- Mention your 10-digit PAN for reference.
- If you are an individual applicant, attach two passport-sized photographs that are cross-signed carefully, ensuring that your face is not covered while signing.
- Fill in all the necessary details in the form and sign the relevant boxes.
- Send the completed form, along with the required documents and payment, to the NSDL facilitation centre.
- You will receive a printed acknowledgement form with a 15-digit number.
- You can check the status of your duplicate PAN card using the 15-digit acknowledgement number.
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Frequently asked questions
No, it is illegal for an individual to hold multiple PAN cards. If you have multiple PAN cards, you must surrender the additional cards.
Having multiple PAN cards can negatively impact your credit profile. Banks view individuals with multiple PANs as potential fraudsters and are hesitant to approve loans. It can also complicate your financial processes, as the PAN card is essential for tasks like filing income tax returns and opening bank accounts.
If caught, the Income Tax Department can take legal action or impose a financial penalty. Under the Income Tax Act, the penalty for having more than one PAN is Rs. 10,000.
You can surrender your PAN card online or offline. To surrender your PAN card online, visit the NSDL website and select the PAN correction option. Fill in your personal details and mention the additional PAN card you want to surrender. To surrender your PAN card offline, fill out the PAN change request application form and submit it to the nearest UTI or NSDL TIN facilitation centre.
