The government has recently approved the PAN 2.0 scheme introduced by the Income Tax Department. This initiative aims to streamline and modernize the issuance and management of PAN and TAN. PAN 2.0 also focuses on eliminating duplicate PAN cards and preventing fraud.
In recent times, cases of fraud involving PAN cards have increased significantly. To address this, the government is working to close all loopholes through the PAN 2.0 scheme. Meanwhile, reports suggest that individuals holding duplicate PAN cards may face penalties.
But what exactly is a duplicate PAN card, and why could possessing one lead to a fine of ₹10,000? Let’s explore this further.
Having More Than One PAN Card is Illegal
According to the Income Tax Act, of 1961, no individual is permitted to hold more than one PAN. If a person possesses multiple PAN cards, they must inform the Jurisdictional Assessing Officer and have the extra PAN deactivated. Failure to do so may result in penalties if the issue comes to the notice of the department.
The Finance Ministry has stated that PAN 2.0 will use advanced technology to identify duplicate PANs more effectively. This initiative aims to significantly reduce the instances of individuals holding multiple PAN cards, with the ultimate goal of eliminating duplicate PANs.
Consequences of Not Surrendering a Duplicate PAN Card
If you fail to surrender a duplicate PAN, the Income Tax Department can impose a penalty of up to ₹10,000 under Section 272B of the Income Tax Act.
Steps to Surrender a Duplicate PAN Card
- File the required form with PAN service providers like NSDL or UTIITSL.
- Ensure your valid PAN is linked to Aadhaar.
- Update your PAN in all financial records, including bank accounts, investments, and tax filings.
Impact of PAN 2.0 on Fraud Prevention
The government aims to close loopholes and prevent fraudulent activities through a robust and modernized PAN 2.0 system.
Avoiding Penalties: What You Need to Do
Timely action to surrender duplicate PAN cards ensures compliance with tax laws and avoids unnecessary penalties.