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.
