New Delhi: Government Strengthens PAN Services with E-Governance
The government is working towards upgrading all PAN Card-related services through advanced e-governance. To achieve this, the PAN 2.0 initiative has been introduced, aiming to eliminate duplicate PAN cards completely. If you possess more than one PAN card, it’s time to take action. The Income Tax Department has decided to impose strict penalties on individuals holding multiple PAN cards. As per the new regulations, failure to surrender an extra PAN card could result in a penalty of up to Rs 10,000. This raises the question: Is it legal to have more than one PAN card?
Holding Multiple PAN Cards is Illegal
As per the Income Tax Act of 1961, no taxpayer or non-taxpayer is allowed to possess more than one PAN card. Whether obtained mistakenly or intentionally, holding duplicate PAN cards is a legal violation. If you have an extra PAN card, it is crucial to surrender it immediately. The government is addressing this issue seriously and is using advanced technology to track and eliminate duplicate PAN cards.
Understanding the PAN 2.0 Initiative
The PAN 2.0 scheme has been launched to modernize PAN and TAN management, ensuring efficiency and security. The primary objectives of this scheme include:
- Eliminating Duplicate PAN Cards: Preventing fraud and ensuring that each individual has only one PAN.
- Enhancing Fraud Prevention: Strengthening identity verification through advanced technology.
- Faster Processing: Streamlining PAN and TAN applications to make them quicker and more convenient.
By implementing PAN 2.0, the government aims to create a secure and transparent system where every individual holds a single, verifiable PAN card.
What Should You Do If You Have More Than One PAN Card?
If you possess multiple PAN cards, you must surrender the extra one immediately. Follow these steps:
- Visit the official portal of NSDL or UTIITSL.
- Fill out the PAN surrender form with accurate details.
- Attach the necessary documents as required.
- Submit the form and obtain a receipt of the surrendered PAN.
- Keep the receipt safe for future reference as proof of surrender.
Key Considerations Before Surrendering a PAN Card
When surrendering an extra PAN card, ensure that:
- Your valid PAN card is linked to Aadhaar.
- Your bank account, tax records, and investments are correctly linked to the valid PAN.
- You do not surrender the correct PAN—only the duplicate or unnecessary one.
By taking timely action, you can avoid legal issues and penalties while ensuring compliance with tax regulations.
Consequences of Not Surrendering a Duplicate PAN Card
Failure to surrender a duplicate PAN card can lead to serious consequences:
- Penalty of up to Rs 10,000 under Section 272B of the Income Tax Act.
- Difficulties in tax filing and possible rejection of returns.
- Banking and financial transactions may be blocked due to multiple PAN entries.
Negative Impact on Credit Score
Holding multiple PAN cards can also negatively affect your credit score, which can lead to loan rejections and financial complications. To avoid these issues, surrender your extra PAN card at the earliest. The government is taking strict action, and anyone found misusing multiple PAN cards could face legal consequences.
Final Thought
With the launch of PAN 2.0, the government is reinforcing financial transparency and eliminating duplicate PAN cards. If you have more than one PAN card, take immediate steps to surrender the extra one and stay compliant with the law.
