This mistake regarding PAN card can cost you Rs 10,000
Here is how you can avoid such a hefty fine.
A permanent account number (PAN) is a 10-character alphanumeric identifier, issued in the form of a laminated "PAN card", by the Indian Income Tax Department. It serves as an important proof of identification. PAN is also necessary for filing income tax returns.
If someone gets two PAN cards, then strict legal action can be taken against them. If someone has more than one PAN, he can be fined Rs 10,000 under the Income Tax Act 1961.
Surrender one of the PAN cards immediately If you have more than one PAN card by mistake. It is better to get rid of excess PAN as soon as possible before getting caught in any legal action.
Here is how to surrender more than one PAN:
- Go to NSDL website or office.
- Mention the PAN you want to continue in this form, top it and fill the remaining PAN information in item number 11 in the form. Apart from this, copy the PAN which is to be canceled with the form.
- Some people make different PANs for different tasks. Separate PAN for Demat account and make a separate PAN card for the payment and return of income tax.
- Apart from this, many people apply for a fresh PAN card after the old pan is lost. Because of this, they have many PANs.
- If a separate PAN is prepared for Demat and Income Tax, then a PAN will have to be surrendered. In both of these surrender the PAN which you use for the purpose of income tax. Surrender the second PAN and send them the information of your original PAN.
The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions, especially those of high-net-worth individuals who can impact the economy.
One can apply for PAN by submitting the prescribed PAN application to the authorized PAN agency of the district or through online submission to NSDL Website, UTI along with two recent passport size color photographs, proof of ID, Address and Date of Birth and fee. In case of re-print (re-issue), a photocopy of the old PAN is also required. It takes about 10–15 days to receive the card.