MULTIPLE PERMANENT ACCOUNT NUMBER (PAN) CARD ISSUE: PROBLEMS AND HOW TO SOLVE?

INTRODUCTION:

A PAN is a ten-digit alphanumeric number issued as a laminated PAN card by the Income Tax Department. It is an identifier of the “person” with the tax department. It facilitates linking various documents, such as payment of taxes, tax arrears, tax demand, etc., to an assessee. Having multiple PAN cards is against the law and is liable to penalty. Also, it will confuse financial transactions. This article explains the consequences of having an additional card and how to resolve multiple PAN card issues.  

WHY DO PEOPLE END UP HAVING MULTIPLE PAN:

Not everyone who has dual or multiple PAN cards has malicious intent. Sometimes, people obtain additional PAN cards accidentally. However, they are responsible for returning it since it leads to legal complications. Below, we have provided common cases of people having additional PAN cards.

• Multiple applications: Applying for a PAN card multiple times is the main reason people have more than one card. Most people apply one more time when they don’t receive their PAN card at the stipulated time they have already applied. As a result, they will get an additional PAN card.  An applicant needs to be patient in this case instead of reapplying. 

• Changing the details: An individual who wants to change the address or name on the card will apply for a new one. For example, if a woman intends to change her surname after marriage, it will lead to an application for a new PAN card. It is advisable to make the changes in the existing PAN card through the website or offline. 

• Malicious Intent: An individual or entity could apply for a new PAN card intentionally to cheat the government for tax evasion. Misusing the PAN card for personal advantages can lead to penalties and punishable acts.

• Ignorance of NRI’s: People sometimes end up with more than one PAN card because, in many cases, Non-Resident Indians (NRIs) visiting the country apply for PAN cards multiple times. This happens because there is a limit on the maximum transaction allowed without a PAN card. NRIs are compelled to obtain a PAN card for transactions beyond this limit. When NRIs return to the country after a considerable period, they often reapply for a PAN card, leading to the accumulation of multiple PAN cards.

PENALTIES:

Section 139A of the Income Tax Act states that a taxpayer should have only one PAN card. Possessing more than one PAN is illegal and can result in a penalty. Section 272B of the IT Act imposes a fine of Rs. 10,000 for having multiple PANs, decided by the Assessing Officer. Defaulters have the opportunity to explain themselves, and this section also applies when providing false PAN information. To deter the ownership of multiple PANs, the government enforces strict regulations and imposes a Rs. 10,000 fine under Section 272B of the Income Tax Act.

CONSEQUENCES:

• Risk of Legal Action: Individuals or entities found using multiple PANs to evade taxes can face legal consequences under income tax laws, in addition to fines. This prosecution clause serves as a warning to those attempting to save money through tax evasion, as it may lead to severe punishment.

• Financial Process Complications: Owning more than one PAN card can complicate one’s financial processes. Since the PAN card is essential for tasks like filing income tax returns and opening bank accounts, having multiple PANs can create issues for applicants, causing disruptions in their financial activities.

• Negative Impact on Credit Profile: Possessing multiple PAN cards can negatively affect one’s credit profile. 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.

SURRENDER A DUPLICATE PAN ONLINE:

The steps to return the Duplicate Online. Ensure you’re surrendering the additional PAN Number, it prone to violation of law.

Step 1: Visit the official website of NSDL (National Securities Depositories Limited).

Step 2: Select the PAN correction option from the ‘Application Type’ drop-down menu.

Step 3: Fill in personal details, including full name, date of birth, mobile number, email, and PAN.

Step 4: After submission, receive a new token number via email. Use this and your date of birth to log in and complete the application.

Step 5: Click on the ‘Submit scanned images through e-Sign’ checkbox and enter the PAN you want to retain.

Step 6: Fill out the remaining personal details, including selecting the additional PAN to surrender.

Step 7: Choose and upload documents as proof of identity, address, and date of birth.

Step 8: Preview the application, click ‘Verify,’ and proceed to make the payment. Receive an acknowledgement for future reference.

HOW TO RETURN AN ADDITIONAL PAN OFFLINE:

If you’re uncomfortable with the online process, surrender it offline. The following steps can help you to know how to do that. 

Step 1: 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.

Step 2: Write a letter to the Assessing Officer with personal details, PAN card numbers, and details of the duplicate PAN card being surrendered.

Step 3: Enclose a copy of the duplicate PAN to be surrendered along with the acknowledgement from the NSDL TIN facilitation centre.

HOW TO CHANGE/UPDATE DETAILS IN THE PAN:

Apply for a new PAN to update or correct the details. If you fall into this category, understand that updating your details on the existing PAN is possible. Use the steps below to change the details in your current PAN card rather than reapplying. 

Step 1: Visit the official NSDL website to initiate the PAN correction process. NSDL is an authorized entity for PAN issuance and correction.

Step 2: Select the ‘PAN Services’ section on the website and click ‘Apply’ under ‘Changes or Correction in PAN Data.’

Step 3: Complete the PAN correction form with accurate details, including your PAN number and the corrections you want to make.

Step 4: Submit supporting documents such as a marriage certificate or gazette notification for a name change, depending on the required correction.

Step 5: Pay the fee for PAN correction by using online methods like credit/debit cards, net banking, or demand drafts.

Step 6: Use the Aadhaar OTP to authenticate your details during correction.

Step 7: After completion, you will receive an acknowledgement receipt with a 15-digit number. Use this number to track your PAN correction application on the NSDL website.

CONCLUSION:

As already mentioned, having multiple PAN cards is legally wrong. It does not matter whether you get that intentionally or accidentally; you must return the additional one. Otherwise, it leads to legal complications and financial confusion. We have covered the consequences and how to surrender the additional PAN card online and offline. If you want to change the details in the paragraph, you don’t need to apply for a new one, instead use the steps mentioned in this article to update the appropriate details.

Note: This article is write for general informational purposes only. It is not intended to serve as a recommendation, consultation, or advice.

AGRICULTURAL INCOME TAXATION IN INDIA

A Comprehensive Overview

Agriculture remains the backbone of India's economy, serving as the primary source of livelihood for a significant portion of the rural population. Beyond sustaining millions of families, it also fulfills the nation’s essential food requirements. To support this critical sector, the government has implemented various policies, schemes, and incentives, including tax exemptions on agricultural income.

While the tax exemption on agricultural income is a well-known aspect, the broader framework of agricultural income taxation involves several nuances. This article provides a detailed exploration of the legal provisions governing agricultural income tax in India.

 

Defining Agricultural Income

Under the Income-tax Act, agricultural income is classified into three main categories:

1. Rent or Revenue from Agricultural Land

Rent refers to the payment received for granting the right to use agricultural land. This also includes other sources of income related to the land, such as fees for lease renewals. However, income generated from the sale of agricultural land does not fall within the definition of agricultural income.

2. Income from Agricultural Land

Although the Act does not explicitly define "agriculture," the Supreme Court in the case of CIT v. Raja Benoy Kumar Sahas Roy identified two types of operations:

• Basic Operations: These involve direct activities on the land, such as cultivation, tilling, sowing, and planting.
• Subsequent Operations: These include processes like preservation, enhancement, and making the produce market-ready.

Even saplings or seedlings from nurseries qualify as agricultural income, even if they are grown without direct land operations. Additionally, income from processes that make agricultural produce marketable (e.g., processing tea, coffee, or rubber) is partly considered agricultural income, with prescribed rules distinguishing the agricultural and non-agricultural components.

3. Income from Farm Buildings

For income from farm buildings to qualify as agricultural income, two conditions must be met:

• The building must be located near agricultural land.
• The land must either be assessed for revenue by the government or situated outside a specific distance from municipalities, depending on population thresholds.

 

Tax Implications and Partial Integration

While agricultural income is generally exempt from income tax, the system of partial integration ensures indirect taxation of non-agricultural income at higher rates. This applies to individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), and artificial juridical persons if:

• Net agricultural income exceeds ₹5,000.
• Non-agricultural income surpasses the basic exemption limit under the Income-tax Act.

 

ITR Filing and Tax Benefits

• Agricultural income up to ₹5,000 can be reported using ITR-1 (Sahaj). For income exceeding ₹5,000, taxpayers must use ITR-2.
• Section 54B provides relief on capital gains arising from the sale of agricultural land if the proceeds are used to acquire new agricultural land within two years. Eligible taxpayers include individuals and HUFs, provided the land was used for agricultural purposes prior to the sale.

 

Union Budget Highlights

The Union Budget 2023-24 earmarked significant funds for the Ministry of Agriculture and Farmers Welfare. Notably, it announced the establishment of an Agriculture Accelerator Fund to support innovation and rural startups, aimed at driving growth and sustainability in the sector.

 

Conclusion

Agricultural income taxation in India reflects the government’s commitment to supporting the agriculture sector while balancing revenue considerations. Although agricultural income enjoys a tax-exempt status, related provisions such as partial integration and specific tax benefits ensure fairness and compliance. Understanding these nuances is essential for individuals and entities engaged in agricultural activities to fully leverage available exemptions and incentives.

  

Central Government Waives Excess Late Fees for Non-Filing of FORM GSTR-9C for FY 2017-18 to 2022-23, Subject to Submission by March 31, 2025

 GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS

Notification No. 08/2025 - Central Tax

New Delhi, the 23rd January, 2025

S.O. 419(E).— In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby waives the amount of late fee referred to in section 47 of the said Act in respect of the return to be furnished under section 44 of the said Act, for the financial years 2017-18 or 2018-19 or 2019-20 or 2020-21 or 2021-22 or 2022-23, which is in excess of the late fee payable under section 47 of the said Act upto the date of furnishing of FORM GSTR-9 for the said financial year, for the class of registered persons, who were required to furnish reconciliation statement in FORM GSTR-9C along with the annual return in FORM GSTR-9 for the said financial year but failed to furnish the same along with the said return in FORM GSTR-9, and furnish the said statement in FORM GSTR-9C, subsequently on or before the 31st March, 2025:

Provided that no refund of late fee already paid in respect of delayed furnishing of FORM GSTR-9C for the said financial years shall be available.

[F. No. CBIC-20001/15/2024-GST]

RAUSHAN KUMAR, Under Secy.

MANOJ KUMAAR BHAGAT: A Very Very Happy 76th Republic Day

MANOJ KUMAAR BHAGAT: A Very Very Happy 76th Republic Day:   On this special day, let's celebrate the spirit of unity, diversity, and freedom that defines our great nation.  A thousand salutes to...

A Very Very Happy 76th Republic Day

 

On this special day, let's celebrate the spirit of unity, diversity, and freedom that defines our great nation. 

A thousand salutes to this amazing nation of ours. May it become even more prosperous. Happy Republic Day !!! 🇮🇳🇮🇳🇮🇳

Best Regards,

Manoj Kumaar Bhagat

Compliance Checklist for December 31, 2024

 December is a month of festive cheer, last-minute gift shopping, and… tax deadlines! While March is often synonymous with tax planning, December has emerged as equally important for taxpayers. So, grab a cup of coffee, and let’s walk through the key compliance tasks and deadlines for December 31, 2024.

 

1. Vivad Se Vishwas Scheme (VSVS-2024): Resolve Tax Disputes

Deadline: December 31, 2024

The government’s Vivad Se Vishwas Scheme (VSVS-2024) offers taxpayers an opportunity to resolve pending tax disputes. Think of it as a peace treaty for your tax battles.

• Benefits:
• Save 10% on tax disputes.
• Save 5% on penalty-related appeals.
• Missed Deadline Consequences:
• Taxpayers will have to return to litigation.
• Potentially higher costs if disputes are settled after March 31, 2025.

This scheme is a golden opportunity to close disputes amicably while saving time and money.

 

2. Belated Income Tax Return (ITR) – Section 139(4): Better Late Than Never

Deadline: December 31, 2024

Missed the original ITR filing deadline? Don’t panic—December 31 is your second chance to file.

• Late Filing Fees:
• ₹5,000 for most taxpayers.
• ₹1,000 for incomes below ₹5 lakh.
• Risks of Late Filing:

1. Loss Carry-Forward Denied:
• Losses from any source (except house property) cannot be carried forward if ITR is filed after the due date.
2. Denial of Deductions:
• Deductions under Sections 80HH, 80RRB, 80IA, etc., and benefits for charitable trusts are not available for late filers.

By filing before December 31, you can avoid penalties and preserve your tax benefits.

 

3. Revised Income Tax Return (ITR) – Section 139(5): Fix Those Oops Moments

Deadline: December 31, 2024

Mistakes happen, even with taxes. If you’ve forgotten to include certain income or claim deductions, the Revised Return option is your savior.

• Why Revise?
• Add overlooked income (like fixed deposit interest or capital gains).
• Claim unclaimed TDS credits.
• Fix genuine errors (like typos or missed deductions).
• Advantages of Revising:
• No late fees.
• Unlimited revisions allowed before the deadline.
• Returns can be revised even after they’ve been processed or refunds issued.

Taking the time to correct errors ensures compliance and avoids future complications.

 

4. Updated Income Tax Return (ITR-U) – Section 139(8A): The "Oops, I’m Late Again" Option

For Taxpayers Who Miss All Deadlines:

If you missed even the belated or revised return deadlines, the Updated Return (ITR-U) is your final option—albeit with a cost.

• Conditions to File ITR-U:
• Allowed only if the taxpayer is paying more tax.
• Cannot claim refunds, carry-forward losses, or reduced taxes.
• Additional Tax Rates:
• 25% extra on dues for filings within 12 months.
• 50% extra for filings beyond 12 months.
• Ineligibility:
• Taxpayers involved in tax raids or surveys.
• Cases with ongoing assessment or reassessment proceedings.

Remember, this is a one-time opportunity. Once filed, you cannot revise an Updated Return for the same year.

 

5. Disclosure of Foreign Assets in ITR

Taxpayers must disclose any foreign assets in their original, belated, or revised ITR forms. Failure to disclose can lead to penalties. Note: Updated Returns (ITR-U) do not provide immunity for non-disclosure of foreign assets. Ensure compliance to avoid severe consequences.

 

31st December: File & Smile

In tax matters, earlier is always better. Filing on time or fixing mistakes before December 31 can save you money, stress, and potential legal headaches. So, revisit your ITR for FY 2023-24, make any necessary corrections, and file before the year’s end.

May your December 31 be stress-free and compliant. Happy filing!

Procedure for Transmission of Shares under Companies Act, 2013

Transmission of shares

A transmission of interest in shares of a company, of a deceased member of the company, made by the legal representative of a deceased member shall be considered as transmission of shares by operation of law. This transmission will be registered by a company in the Register of Members.

For statutory provisions related to Transmission of share one should refer the following sources:

1. Section 56 of Companies Act, 2013

2. Provisions given in model articles of association given in Table ‘F’ of Schedule-I

“Relevant” Text of Section 56 and Rule 11 are reproduced below for ready reference:

Transfer and transmission of securities

Section 56 (2) Nothing in sub-section (1) shall prejudice the power of the company to register, on receipt of an intimation of transmission of any right to securities by operation of law from any person to whom such right has been transmitted.

(3) Where an application is made by the transferor alone and relates to partly paid shares, the transfer shall not be registered, unless the company gives the notice of the application, in such manner as may be prescribed, to the transferee and the transferee gives no objection to the transfer within two weeks from the receipt of notice.

(4) Every company shall, unless prohibited by any provision of law or any order of Court, Tribunal or other authority, deliver the certificates of all securities allotted, transferred or transmitted—

(a) within a period of two months from the date of incorporation, in the case of subscribers to the memorandum;

(b) within a period of two months from the date of allotment, in the case of any allotment of any of its shares;

(c) within a period of one month from the date of receipt by the company of the instrument of transfer under sub-section (1) or, as the case may be, of the intimation of transmission under sub-section (2), in the case of a transfer or transmission of securities;

(d) within a period of six months from the date of allotment in the case of any allotment of debenture:

Provided that where the securities are dealt with in a depository, the company shall intimate the details of allotment of securities to depository immediately on allotment of such securities.

(5) The transfer of any security or other interest of a deceased person in a company made by his legal representative shall, even if the legal representative is not a holder thereof, be valid as if he had been the holder at the time of the execution of the instrument of transfer.

(6) Where any default is made in complying with the provisions of sub-sections (1) to (5), the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees.

Main Provisions related to Transmission of Share

1. Person eligible to apply for transmission:The survivors in case of joint holding can get the shares transmitted in their names by production of the death certificate of the deceased holder of shares. In other words in case of joint holding, the survivor or survivors shall only be entitled for registration and the legal heir of the deceased member shall have no right or claims.

2. Share transfer deed not required for Transmission: Execution of transfer deed not required in case of transmission of shares. Intimation/application of Transmission accompanied with relevant documents would be enough for valid transmission request.

3. Documents required for Transmission of Shares:In case of transmission of sharesby operation of law, it is not necessary to execute and submit transfer deed. A simple application to the company by a legal representative along with the following necessary evidences is sufficient:—

a. Certified copy of death certificate;

b. Succession certificate;

c. Probate;

d. Specimen signature of the successor.

4. Liability on shares shall continue: In the case of a transmission of shares, shares continue to be subject to the original liabilities, and if there was any lien on the shares for any sums due, the lien would subsist, notwithstanding the devaluation of the shares.

5. Payment of consideration or stamp duty not required: Since the transmission is by operation of law, payment of consideration or payment of stamp duty would not be required on instruments for transmission.

6. Time limit for issue of share certificate on transmission (Section-56(4)): Every company, unless prohibited by any provision of law or of any order of any Court, Tribunal or other authority, shall, within One month deliver, the certificates of all shares transmitted after the application for the registration of the transmission of any such shares received.

7. Time Limit for Refusal of registration of Transmission:Provisions related to Refusal of registration and appeal against refusal is given in Section 58 of the Companies Act, 2013.Power of refusal to register transmission of shares is to be exercised by the company within thirty (30) days from the date on which the intimation of transmission is delivered to the company.

8. Time Limit for appeal against refusal to register Transmission by Private Company:As per section 58(3), the person who gave intimation of the transmission by operation of law,may appeal to the Tribunal against the refusal within a period of thirty (30) days from the date of receipt of the notice from the Company or in case no notice has been sent by the company, within a period of sixty (60) days from the date on which the intimation of transmission was delivered to the company.

9. Time Limit for appeal against refusal to register Transmission by Public Company: As per section 58(4), the person who gave intimation of the transmission by operation of law may, within a period of sixty (60) days of such refusal or where no intimation has been received from the company, within ninety (90) days of the delivery of the intimation of transmission, appeal to the Tribunal against such refusal.

10. Penalty for Non-compliance: Where any default is made in complying with the provisions related to transmission of shares, the company shall be punishable with fine which shall not be less than Rs. 25,000/- but which may extend to Rs. 5,00,000/- and every officer of the company who is in default shall be punishable with fine which shall not be less than Rs. 10,000/- but which may extend to Rs. 1,00,000/-.

Extremely useful Information and knowledge about Transmission documents:

i. Meaning of Probate: If a member of a company dies and he leaves after him a will or letter of administration then the survivors shall get a copy of ‘will’ certified under the seal of a Court of competent jurisdiction. The certified copy of the will is called a ‘probate’. Succession certificate is not required when probate or letter of administration is issued.

ii. If a member of a company dies without leaving a will, then succession certificate issued by a Court of competent jurisdiction shall be submitted to the company. Once succession certificate is granted, it provides full indemnity to the company regarding transmission of shares by operation of law.

iii. The survivors in case of joint holding can get the shares transmitted in their names by production of the death certificate of the deceased holder of shares.

Basic Procedure for Transmission of Share

 Generally articles contain the detailed provisions as regards the procedure for transmission of shares. Usually following steps shall be followed in order to give effect to the transmission of shares:—

1. The survivor in case of joint holding or legal heir, as the case may be, who want transmission by operation of law in his/her favour, shall filea simple application with the Company with relevant documents such as death certificate, succession certificate, probate, etc., depending upon various circumstances may be considers necessary for transmission by the Company.

2. The company records the particulars of the death certificate and a reference number of recording entry is given to the shareholder so as to enable him to quote such number in all future correspondence with the company.

3. The company review and verify the documents submitted with transmission request. In case all the documents are in order, company shall approve the transmission request and register the shares in the name of the survivor or legal heir as the case may be.

4. However in case documents submitted with transmission request are not in order and it is the case of refusal, company shall within thirty (30) days, from the date on which the intimation of transmission is delivered to the company, communicate refusal to the concerned person.

5. Dividend declared before the death of the shareholder will be payable to legal representative but dividend declared after the death of a member can be paid to him only after registration of his name and till that period it has to be kept in abeyance.

————–

Sample application for transmission of shares

To,                                                                                                               Date: 29/12/2017

The Board of Directors,

Reliance Industries Limited

Nariman Point, Old Palasia Road,

Mumbai (Maharashtra)

Sub: Transmission of 500 Equity shares held by Late Sh. Jagdish Lal

Ref.: L.F. No.­­­­­­­­­­­­­­­____________

Dear Sir/Madam,

I have to inform that my father Late Sh. Jagdish Lal  expired on July 05, 2016. He was holding 500 Equity Shares of Rs. 10 each fully paid up in the company under L.F. No. 110.Please find below relevant details of the Equity Shares :

No.	Share Certificate No.	No. of Equity Shares	Ledger Folio No.Transferor	Distinctive NumberFrom	Distinctive NumberTo
1.	110	500	110	703201	703700

 I, hereby submit the following documents for transmission of 500 Equity Shares in my name:

1. Copy of the death certificate obtained from Nagar Nigam, Maharashtra.
2. Succession Certificate.
3. Original share certificate.
4. My Specimen signatures.

Kindly consider and arrange for transmission of the said shares in my favour and oblige.

Thanking you.

Yours faithfully

(Manoj Bhagat)

(Son of Late Shri Jagdish Lal)

Address:

Phone No.: