Dealing with Multiple PAN Cards: Why and How to Comply

Having multiple PAN (Permanent Account Number) cards can create confusion and even lead to legal issues. In this article, we will explore the reasons why you should only have a single PAN card, how to comply with the regulations, and the steps to take if you find yourself in this situation.

Why Only One PAN Card?

PAN cards have become indispensable in our financial dealings, from banking to filing income tax returns. The Income Tax Department in India mandates that each individual can have a maximum of one PAN card. This is a strict regulation aimed at preventing identity theft and ensuring accurate tax administration. Having multiple PAN cards can lead to severe penalties and even imprisonment.

Consequences of Multiple PAN Cards

If you are found to have more than one PAN card, you might face legal consequences. The Income Tax Department has explicitly mentioned that possessing more than one PAN card will result in a minimum six-month imprisonment and a penalty of Rs. 10,000. These fines and imprisonment terms can increase depending on the section used by the Income Tax Department. Therefore, it is crucial to ensure compliance with these regulations.

What to Do if You Have Multiple PAN Cards

There are a few steps you can take if you have more than one PAN card:

Identify the Duplicate PAN Cards: First, carefully examine your PAN cards to identify any duplicates. A PAN card number is unique, so if the numbers are the same, they are duplicates. If you have two PAN cards with the same number, you can keep both.

Choose One to Keep: You should retain one of the PAN cards and return the duplicate one. You can inform the Income Tax Department by sending a mail to Mention the details of both PAN cards and indicate which one you are returning.

Link to Aadhaar: Since the Aadhaar card is mandatory for linking with PAN and bank accounts, ensure that you have linked your PAN card with Aadhaar. If you have a second PAN card, it may become irrelevant if not linked with Aadhaar.

Aadhaar is a unique identification number issued by the Unique Identification Authority of India (UIDAI) for residents of India. It is a statutory document for linking with various government services, including PAN.

Steps to Surrender a PAN Card

If you have a second PAN card with a different PAN number:

Contact the Income Tax Authority: Reach out to the Income Tax Department to inform them about the duplicate PAN card. They can guide you through the process of cancellation.

Cancellation Process: The specific cancellation process may vary, but you may need to surrender the card in person or through a postal order. You should also ensure that you have the necessary identification and proof of your PAN card number.

Additionally, when requesting a reprint of a PAN card or applying for a new one, you will need to fill out a form to declare any other PAN card number you have. This information may need to be mentioned when you apply for a PAN card or reprint.

Conclusion

Holding multiple PAN cards can lead to complications and potential legal issues. It is advisable to adhere to the regulations and have only one valid PAN card. If you have multiple cards, contact the Income Tax Department to ensure compliance and avoid any penalties.