PAN cards, like Aadhaar cards, have become essential for financial and legal transactions in India. From opening bank accounts to filing taxes, conducting investments, or applying for loans, a PAN card is often mandatory. But did you know that holding more than one PAN card is illegal and can attract penalties?
According to the Income Tax Act, having two or more PAN cards can lead to fines of up to ₹10,000. This is because multiple PANs for a single person can create confusion in tax records, facilitate tax evasion, and complicate financial tracking.
If you find yourself in possession of more than one PAN card, the Income Tax Department recommends the following steps:
1. Identify Duplicate PANs – Check your PAN status online using the Income Tax e-filing portal to see if multiple PANs exist in your name.
2. Apply for Surrender – Submit a request to surrender the additional PAN(s) to the Income Tax Department. You will need to provide identification proof and details of the PAN to be retained.
3. Keep the Active PAN Updated – Ensure that all your financial accounts, tax filings, and official documents reference only your active PAN.
Experts emphasize that prompt action is essential to avoid penalties and ensure your tax records remain accurate. Once duplicate PANs are surrendered, the department updates its records, preventing any future legal or financial complications.
With PAN cards now mandatory for nearly all major financial transactions, it is crucial for individuals to maintain a single, valid PAN and avoid holding multiple cards. Doing so ensures smooth banking, investments, and tax compliance without running afoul of the law.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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