Introduction
In India, your PAN card is a fundamental piece of identification for any financial dealings, from the smallest transactions, like opening a bank account, to larger investments. It’s a gateway to participating in the country’s vast financial system. However, owning multiple PAN cards under the same name or entity is against the rules and can lead to serious PAN penalties.
In this article, we’ll explain what a PAN card penalty means and guide you through the process of surrendering any duplicate PAN cards, ensuring you stay compliant with the rules and experience smoother financial interactions in India.
Penalty for Multiple PAN Card
Under section 139A of the Income Tax Act, 1961, it is mandated that an individual may possess only one PAN Card, and this section also delineates the eligibility criteria for PAN Card application. Notably, the seventh provision of this section expressly prohibits anyone who has already been assigned a permanent account number under the new series from making a fresh application, acquiring, or holding an additional permanent account number, thus stipulating a PAN card penalty for those in breach of this regulation.
Possessing a Duplicate PAN Card
Here are the primary reasons why individuals may find themselves possessing duplicate PAN cards:
1. Multiple Applications Submitted
In cases where individuals file multiple applications for a PAN card, often due to online application rejections and subsequent offline submissions, there’s a risk of multiple PAN numbers being issued to the same person.
2. Changes in PAN Details
Two common scenarios arise in this context. Firstly, changes in address details, and secondly, changes in the name on the PAN card.
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Address Changes
When the address on the PAN card needs to be updated, it is important to note that applying for a fresh PAN is not required. The existing PAN can be rectified through the website or offline methods.
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Name Changes
Name changes, often occurring due to events like marriage, can lead to individuals applying for a new PAN card, potentially resulting in the possession of multiple PAN cards.
3. Intentional Duplicate Application
When individuals intentionally apply for a duplicate PAN card with the intent of tax evasion or personal gain, this constitutes a fraudulent act that can lead to penalties and legal consequences, as it undermines the integrity of tax agencies and the government.
PAN Penalty for Duplicate/Multiple PAN Cards
Section 272B of the Income Tax Act outlines the PAN card penalty for non-compliance with Section 139A, which permits one PAN card per taxpayer. Having more than one PAN card can result in a fine of ₹10,000 imposed by the Assessing Officer (AO), who uses their discretion to evaluate the individual’s intent and determine the penalty.
Individuals with multiple PAN cards can provide an explanation to the AO, clarifying the reasons for having multiple cards. This section also applies when an individual provides false PAN information to an official, emphasising the need to adhere to the rule of having only one PAN card per taxpayer.
How to Surrender an Extra PAN Card Online?
You can ensure a seamless process by following these comprehensive steps to surrender an additional PAN card online:
1. Visit the Official NSDL Website
Start by visiting the official website of the National Securities Depositories Limited (NSDL).
2. Choose PAN Correction
In the ‘Application Type’ section, select the PAN correction option from the drop-down menu.
3. Provide Personal Information
Fill in your personal information, including your full name, date of birth, mobile number, email, and your existing PAN number.
4. Receive a Token Number
During this step, you will be guided to another webpage where a fresh token number will be generated. This unique number will appear on the webpage and will also be dispatched to your email inbox.
5. Log In
Use the temporary token number, your email address, and date of birth to log in and complete the pending application.
6. Select PAN to Retain
Check the ‘Submit scanned images through e-Sign’ option and enter the PAN you want to keep.
7. Provide Additional Information
Fill out the remaining personal details, ensuring that you complete the mandatory fields marked with an asterisk (*). Do not click the corresponding checkboxes on the left margin.
8. Specify the PAN to Surrender
On the next page, indicate which additional PAN card you wish to surrender.
9. Upload Proof Documents
You will be prompted to select and upload documents as proof of identity, address, and date of birth.
10. Review and Verify
Preview the application form on the following page, click ‘Verify,’ and proceed to make the payment. You will be provided with a receipt for future reference.
How to Surrender an Extra PAN Card Offline?
If you want to get rid of an extra PAN card through the offline method, follow these easy steps:
- Complete Form 49A, designed for making changes to your PAN details. Ensure you provide the required information about the extra PAN you want to surrender and the one you intend to keep.
- Send a copy of your PAN card and the filled form to the nearest NSDL TIN facilitation centre or UTI PAN centre. Don’t forget to keep the Acknowledgment copy they give you for your records.
- Write a letter to your jurisdictional AO (Assessing Officer) explaining your intent to surrender a duplicate PAN. Include your personal details, like your name and date of birth (or date of incorporation for firms and companies). Also, mention the details of the extra PAN card.
- Submit this letter, a copy of the duplicate PAN card and the acknowledgement slip to the appropriate authorities.
Know More About How to Apply for PAN Card?
Conclusion
Understanding the process of surrendering a duplicate PAN card, whether through online or offline methods, is cfrucial for maintaining compliance with tax regulations and avoiding penalties. Ensuring you possess only one valid PAN card simplifies your financial transactions and ensures a smooth tax filing experience. Whether you choose the online route, which offers convenience and speed, or the offline approach, which allows for a traditional submission, the key lies in following the designated steps carefully.
FAQs
What is the fee for surrendering PAN cards?
If your address is within India, the processing fee is ₹110. For those with foreign addresses, the fee is ₹1,020. Payments can be made using credit cards, debit cards, internet banking, or through a demand draft made payable to ‘NSDL-PAN.’
Why is the acknowledgement slip important when surrendering a duplicate PAN online?
After payment, you should download and print the acknowledgement slip. You need to send this document, along with a copy of your PAN, proof of identity, address, and date of birth, to NSDL’s Pune address for your request to be processed.
Is the cancellation of a duplicate PAN approved by the jurisdictional AO immediately?
Your AO may not immediately cancel your additional PAN. They may scrutinise details related to the surrendered PAN, examine disclosed incomes, taxes filed against it, and even request you to provide information or answer questions regarding your request.
What are the consequences of not linking the Aadhaar Card with PAN?
If you possess a PAN and are eligible for Aadhaar, it is crucial to link the two. Failure to link them will result in your PAN becoming inoperative. An inoperative PAN cannot be used for high-value transactions, and non-compliance may lead to penalties under section 272B.
