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Holding Two PAN Cards? Find Out Risks, Penalties, And How To Resolve It
Holding more than one PAN Card in India can cause legal issues and confusion with your tax records. Each person is allowed only one PAN Card. If you have multiple cards, it’s crucial to resolve this quickly to avoid penalties and ensure smooth financial transactions. Here’s what you need to know.
One PAN Card Per Individual
In India, each person is allowed only one PAN Card. It’s a unique identifier for financial and tax purposes, issued by the Income Tax Department. Multiple PAN Cards for one individual are not permitted and can lead to complications.
Consequences of Holding Multiple PAN Cards
Holding more than one PAN Card is a violation of the Income Tax Act. It can create confusion in your income tax records, making it difficult for authorities to track your tax payments and filings accurately.
Penalty for Multiple PAN Cards
If you are found with more than one PAN Card, the Income Tax Department can impose a penalty of up to Rs 10,000 under Section 272B of the Income Tax Act, 1961. It’s essential to resolve this issue to avoid fines.
Surrendering Extra PAN Cards
If you have inadvertently obtained more than one PAN Card, you must surrender the additional ones. Contact the Income Tax Department to cancel any extra PAN Cards you hold to comply with the regulations.
Importance of a Single PAN Card
Your PAN Card is crucial for various financial activities, including opening bank accounts, applying for loans, and filing tax returns. Having a single, valid PAN Card ensures all your financial transactions are properly tracked.
PAN and Aadhaar Linking
Since July 1, 2017, it’s mandatory to link your PAN with Aadhaar as per Section 139AA of the Income Tax Act. This helps in the accurate tracking of your financial records and ensures the validity of your PAN Card.