Penalty on PAN

Penalty on PAN

A PAN Card is not just a unique code consisting of alphabets and numbers. It is a primary source that provides information about your tax liability to the government. Therefore, misusing or having multiple PANs can lead you towards a penalty fee on PAN. 

Moreover, if you use multiple PANs for malicious reasons, you have to face the wrath of Indian laws along with punishments and penalties on PANs.

However, in some cases, people unknowingly end up with multiple PANs and if you are one of them, you should surrender PAN.

In this article, we list down situations that lead to ownership of multiple PANs, ways to surrender PANs and the penalties associated with PAN cards.

Here we go,

Duplicate PAN Cards

Most people who own multiple PANs don’t have any immoral intentions. In the worst-case scenario, people are either unaware of owning duplicate PANs or do so with vindictive objectives

Numerous Applications  

It is possible that if you have applied for PAN and failed to receive it, you might have to re-apply for it. However, this reapplying may get you multiple PANs without your knowledge. In such cases, you must wait for some time before re-applying. 

Initially, the Income Tax department was issuing PANs but since there were delays the process was given to sub-companies. This eventually, has increased the chances of miscommunication in cases of multiple accounts. 

While Making Changes in PAN Details

Changing your name nowadays is an everyday affair. Thus, there is a chance that you may apply for a PAN while changing your name and change some details as well. And, in such cases, there is a chance of you forgetting to cancel your old PAN card. It may lead to you having additional PANs with different PAN numbers.

For instance,  when a woman who is married recently opts to take a new name, along with address and city. If she applies for a new PAN card without canceling the old one, she will end up with two PAN cards which are illegal. 

Malevolent Purposes

It is quite possible that some people with wrong intentions use your PAN card and cheat the government in terms of money, products, commodities, and many others. Doing such activities is a heinous crime that is adept with a lot of penalty charges.. 

Penalty for Multiple PANs

The Indian Government has strict laws if you own multiple PANs or duplicate PANs. A hefty amount will be levied as a penalty charge for PAN under Section 272B of the Income Tax Act. Here are the Sections from the Income Tax Department that can be imposed on you for Multiple PANs.

Income Tax Act, Section 139A (7)

According to this Section, no individual is allowed or will be allotted a PAN if they already had one. 

Income Tax Act, Section 272B  

According to this section, there will be a chargeable fine of ten thousand rupees for having multiple PANs. This section is applicable if you do not oblige to Section 139A (7). Moreover, if you quote a false PAN number in front of the assessing officer, you will be liable to pay a hefty amount.

How Can We Return Multiple PANs?

If you have multiple PANs then you must surrender additional or duplicate PANs to avoid all the legal penalties. There are two methods to surrender PAN: Offline surrender PAN and Online surrender PAN.

Offline Surrender of PAN

You can submit the PAN offline by filling the PAN Change Request application form available on the Income Tax Department of India. However, you have to mention the PAN which you want to continue to use or want to retain. Ensure that you provide all the PAN details in 11 columns of the same form. Also, you have to submit a copy of all the additional PANs along with the form to cancel their existence. You can submit the form to the assessing officer of the jurisdiction your address falls in.

Online Surrender of PAN  

If you want to surrender PAN online, you have to visit the official website of the Indian Income Tax Department. You have to log in using your credentials. Make sure to fill in the right information like your name, birth date, contact details, father’s name, and complete communication address. Moreover, write the complete information about the PAN you want to retain. After the submission, you will receive an acknowledgment number that can be further used for future references. 

Note: We again advise you to refrain from carrying multiple PAN cards. This can lead you to penalty charges for PAN. To avoid the PAN card penalty you have to follow the guidelines falling under the Income Tax Act.

Frequently Asked Questions (FAQ)

What should be done in case a person owns 2 PAN cards?

You can have both the PAN cards if the PAN number is the same in both the cards. However, you have to surrender PAN if both have different PAN numbers as it is illegal.

How can I cancel multiple PANs?

To surrender your PAN offline, you can visit the nearest NSDL center and fill the correction form. You have to attest all the details of the PAN you want to use to continue and others which you want to surrender. Additionally, you can also surrender your PAN card online by visiting the official website of the Indian Income Tax department.

How can anyone misuse a PAN card?

If someone made a copy of your PAN then they can misuse it for illegal purposes. Therefore, you have to be careful while signing a printout of your form. This mostly happens when people go to illegal sources asking for a loan due to a low credit score or any other reason.

Can two PAN cards have the same mobile number?

No, two PAN cards cannot have the same mobile number. The extraordinary thing about a PAN card is that it is a unique permanent Account Number, assigned only to one individual. Therefore, every detail a PAN card has must be different. Moreover, the Income Tax Act won’t give permission for this.

Can I apply for a PAN card again?

PAN card number is different for every other individual and has a validity of lifetime. Therefore, after owning one PAN card you are not legally eligible to own another or multiple PANs. However, you can simply have a copy of your own PAN card.

Arushi Jain Fiercely creative and insanely productive, Arushi Jain is a content writer at Square Yards. Writing since she was fourteen, she aims to publish a novel someday. When not writing, she’s scrolling her Instagram feed or crossing items off her food bucket list.
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