PAN Penalty

In India, it is necessary to possess a PAN card to perform any financial transaction, including opening a bank account. This card serves as a valid proof of identity and is a crucial component of the Indian financial system. Both individuals and organizations must have a PAN card to engage in financial activities within the country. However, possessing multiple PAN cards under the same name or entity can result in penalties.

According to Section 139A of the Income Tax Act, 1961, an individual is only allowed to possess one PAN. This particular section focuses on the criteria for applying for a PAN, as well as when it is required to be quoted. The seventh provision within this section explicitly states that any individual who has already been assigned a permanent account number under the new series is prohibited from applying for, obtaining, or possessing another permanent account number.

Situations of Possessing Duplicate PAN Card

Possessing two PAN cards without knowledge
Situations where a person cannot have more than one PAN card
Multiple applications by individual
Change in PAN details (address and name)
Intent of the PAN holder to evade taxes or defraud the government
Surrendering one PAN card to the authorities in case of multiple applications
Changing surname after marriage resulting in multiple PAN cards
Advisable to change only the corresponding address in case of address change, not apply for a fresh PAN application

PAN Penalty for Duplicate/Multiple PAN Cards

-Under Section 139A (7) of the Income Tax Act, individuals who have already been assigned a permanent account number (PAN) in the new series are prohibited from applying for, obtaining, or possessing another PAN.
Section 272B of the Income Tax Act states that individuals who fail to comply with Section 139A may be subject to a fine of Rs. 10,000. Additionally, if a person is asked to provide their PAN and intentionally provides a false PAN, they may also be fined by the Assessing Officer.

How to Surrender Additional PAN Cards?

Many individuals may have unintentionally or intentionally applied for additional PAN cards.
To avoid penalties or consequences, individuals must surrender their additional PAN cards either manually or online.
Online Surrender:
Visit the official website of the Income Tax Department of India, login to your account, enter the required details, mention the PAN to be surrendered, and submit the application. An acknowledgment will be provided as proof of surrender.
Manual/Offline Surrender:
Fill the PAN correction form, mention the PAN to be surrendered, and submit it to the assessment officer. Retain the acknowledgment slip as proof of surrender.
It is highly recommended to avoid carrying an additional PAN card to avoid penalties and consequences. Follow the guidelines of the Income Tax Act for best financial transactions and contribute to the development of the nation.

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