Penalty for Holding Multiple PAN Cards
Holding more than one Permanent Account Number (PAN) card is against Indian tax laws and can lead to legal issues, including a financial penalty of up to ₹10,000 under Section 272B of the Income Tax Act. It’s important to rectify this issue promptly to avoid consequences.
Why People End Up with Multiple PAN Cards
- Multiple Applications: Individuals may apply for a PAN card multiple times, especially if the original card does not arrive on time. The reapplication process can result in the issuance of more than one PAN.
- Changing Personal Details: Individuals who undergo name changes (e.g., after marriage) sometimes apply for a new PAN card without canceling the previous one.
- Malicious Intent: Some individuals deliberately apply for multiple PAN cards to evade taxes or manipulate financial transactions, which is illegal.
How to Surrender Additional PAN Cards
If you have multiple PAN cards, it’s crucial to surrender them using either the online or manual process.
Online Surrender Process:
- Visit the Official Income Tax Department Website: Navigate to the relevant section for PAN card services.
- Enter Your Details: Provide your full name, contact number, date of birth, and address.
- Indicate the PAN to Retain: Choose the PAN you want to keep and list the others you wish to surrender.
- Submit the Form: An acknowledgment number will be generated. Keep this for future reference.
Manual Surrender Process:
- Complete the PAN Change Request Form: Fill out the form available on the NSDL website.
- Specify the PAN to Retain: In Column 11 of the form, list the PAN you want to keep and provide the details of all additional PANs you wish to surrender.
- Attach Copies of PAN Cards: Attach copies of the additional PAN cards you are surrendering.
- Submit to the Assessing Officer: Submit the form along with the necessary documents to the assessing officer in your jurisdiction.
FAQs on Surrendering Additional PAN Cards
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Can I surrender additional PAN cards online?
Yes, additional PAN cards can be surrendered both online and offline.
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Is it compulsory to surrender additional PAN cards?
Yes, it is mandatory to surrender additional PAN cards to avoid legal consequences and fines. Holding multiple PANs violates income tax laws.
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What if I misplace the original PAN card?
You can still surrender the additional PAN card(s) even if the original card is lost. You should report the loss and, if necessary, apply for a duplicate PAN card.
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Is the acknowledgment slip necessary for the surrender process?
Yes, after submitting the surrender request online, an acknowledgment slip will be generated. Print and attach this slip when sending the documents to the NSDL office in Pune.
Conclusion
Holding multiple PAN cards can result in legal penalties, including a fine of up to ₹10,000. It is essential to surrender any duplicate PAN cards as soon as possible to avoid complications. Whether surrendering online or manually, follow the prescribed process to ensure compliance with Indian tax regulations.
