Top Stories PAN 2.0: Holding Two PAN Cards? Surrender and Deactivate Now to Avoid Legal Issues The Income-tax Act also stipulates that no individual is allowed to hold more than one PAN. If a person possesses multiple PANs, they must inform the Jurisdictional Assessing Officer and request the additional PAN(s) to be deactivated or deleted By Navasree A.M – On December 11, 2024 6:05 pm – 4 mins read The Permanent Account Number ( PAN ) is an important identification tool for taxpayers in India, facilitating financial transactions, income tax filings, and various other processes. However, there have been instances where individuals unknowingly possess duplicate PAN cards, leading to confusion and complications in compliance. Holding multiple PAN cards can cause legal and financial problems. It can lead to errors in tax records, delays in refunds, or problems with financial transactions. PAN 2.0 is designed to correct these issues, helping taxpayers stay compliant and avoid penalties. Become a PF & ESIC expert with our comprehensive course – Enroll Now What is a PAN Card? A PAN card is a unique, 10-character alphanumeric code issued by the Income Tax Department of India.

It serves as an essential identification number for taxpayers and is used in a variety of financial transactions such as opening bank accounts, filing income tax returns, and making high-valued investments. Purpose of PAN The primary purpose of a PAN card is to help the government track and regulate financial transactions, ensuring that taxpayers comply with tax laws. It also helps in preventing tax evasion and acts as a reference for businesses and financial institutions to monitor their clients’ financial activities. Applicability of PAN on Individuals and Businesses PAN is mandatory for individuals, businesses, and organizations that engage in activities involving taxable income or large financial transactions. This includes individuals filing income tax returns, banks, investment entities, and even non-profit organizations that need to comply with taxation laws. Can You Hold More Than 1 PAN Card? No, as per the Income Tax Act, 1961, no individual or entity is allowed to hold more than one PAN card. Holding multiple PAN cards is illegal and can result in legal consequences.

However, many individuals unknowingly end up with duplicate PAN cards, due to errors or mistakes during the application process. According to the Income Tax Act, 1961, it is illegal for an individual to hold more than one PAN card. With the launch of PAN 2.0, the government has implemented advanced technology to identify and track duplicate PAN cards, making it easier to detect violations. If you are found to be in possession of more than one PAN card, you could face penalties and other legal consequences. Become a PF & ESIC expert with our comprehensive course – Enroll Now What is  PAN2.0? The PAN 2.0 Project is modernizing taxpayer registration through advanced e-governance.

With an investment of ₹1,435 crore, this project re-engineers the PAN/TAN services to provide a seamless digital experience. It is the next step in the evolution of the PAN, which was introduced in 1972. It is a unique 10-digit number that links an individual or business’s financial activities—like tax payments, TDS/TCS credits, and income tax returns—to the Income Tax Department. With PAN 2.0, the process is being updated to make it faster, safer, and easier to use. The goal is to create a more efficient and secure digital system that makes it simpler for people to follow tax rules and promotes better financial transparency. It seeks to clarify and improve the process of issuing and managing PAN and TAN, making it more adaptable and efficient. By consolidating multiple platforms and portals, this step up points to meet the evolving needs of taxpayers and offer proper services to PAN/TAN holders. The PAN 2.0 following benefits such as: A single, unified portal for all PAN/TAN-related services, simplifying access for users. Eco-friendly paperless processes to reduce paperwork. Free PAN issuance with faster processing times, ensuring quicker access for applicants. Enhanced security measures, including a PAN Data Vault, to protect personal and demographic information. A dedicated call center and helpdesk to provide immediate assistance and address user queries effectively.

Become a PF & ESIC expert with our comprehensive course – Enroll Now PAN Duplication Identification in PAN 2.0 PAN 2.0 has a better system that can more easily detect duplicate PAN applications. This advanced system intends to reduce cases where people hold more than one PAN card. Section 272B of the Income-tax Act imposes a penalty of ₹10,000 on taxpayers who fail to comply with PAN-related provisions. This includes failing to obtain a PAN when required, knowingly providing an incorrect PAN on prescribed documents, or giving an incorrect PAN to the person deducting or collecting tax. The Income-tax Act also stipulates that no individual is allowed to hold more than one PAN. If a person possesses multiple PANs, they must inform the Jurisdictional Assessing Officer and request the additional PAN(s) to be deactivated or deleted. To determine if you hold duplicate PANs, start by verifying the details linked to each PAN on the official Income Tax Department website. If you find that multiple PANs are linked to your name, it’s important to take immediate action.

The next step is to surrender the extra PAN card(s). Under the Income Tax Act, you must inform the jurisdictional assessing officer and request the cancellation or deactivation of the duplicate PAN. This can be done by filling out the PAN change request application form, where you should specify the PAN you wish to retain and provide the details of the duplicate PAN(s) for cancellation.

Along with the form, attach copies of the extra PAN cards when submitting your request. Once the form is completed, submit it to the jurisdictional assessing officer. They will process your application and deactivate the duplicate PAN cards, ensuring that you comply with the law. Failure to take action could result in serious consequences. If you do not surrender the duplicate PAN, the Income Tax Department may impose a penalty of ₹10,000 under Section 272B of the Income Tax Act.