PAN or Permanent Account Number is allotted by the Income tax department. It serves as an identity proof as well, apart from the crucial number while filing tax returns. This alphanumeric 10 digit number is used in all communication with the income tax department. As per the provisions of Income-tax Act, one tax payer can not possess more than one PAN. This does not mean that you can not apply for a PAN card if it's lost.
Many individuals even do not know that they have more than one Permanent Account Number. It's illegal for a person or company to have more than one PAN Number. If caught, Income Tax Department can take a legal action or put financial penalties. A person can obtain more than one PAN Card accidentally. It may happen because of the following reasons:
For married women
If you are a single now and applied for PAN and dully allotted by income tax department. After marriage, your name got changed. Instead of changing your name in pan card you have applied for another permanent account number and allotted by IT department. In this situations you need to surrender your first PAN to IT department otherwise penalty will be imposed.
Sometimes when we apply for PAN card, we don't get it. That is after applying for a Permanent Account Number; IT department has not allotted it to the person. Sometimes such people has applied once again to get a PAN card. As a result, the applicant has ended up with more than one Permanent Account Number.
In some cases, false PANs are obtained to open a benami demat account, and these accounts are then used to transact in IPO scam and other buying and selling of shares.
PAN Card or PAN number
Before taking a step check what you have exactly two Permanent Account Number (PAN) or two PAN Card. If you have two PAN Cards, check if both the card have same PAN Number. If the number is same, there is no problem. You don't have to do anything. You can keep both the cards. If the PAN number in both the cards are different, then you will have to surrender one of the PAN Number as soon as possible.
What is the penalty?
If you have already allotted one PAN card, you can not apply for another PAN card under Income Tax Act. Failure to meet such conditions will attract a penalty of Rs 10000. In the case of having such extra pan card by any of the above-mentioned conditions, the applicant needs to visit income tax ward related to them and surrender the extra PAN that he or she has obtained.