PAN Card: Correct This Error In PAN Card Or Pay Rs 10,000 Fine

PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is issued in the form of a laminated plastic card. PAN allows the department to identify/ link all transactions of the PAN holder with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence etc.

PAN Utility: It allows smooth retrieval of information of PAN holder and matching of several investments, borrowings and other business activities of PAN holder.

If an individual makes 2.5 lakh transactions annually, PAN Card will be required. PAN card is necessary for business establishments with a turnover of over Rs 500,000. PAN becomes necessary, if an individual buys a car, bike, etc. PAN is also necessary for sale of immovable property worth Rs 10 lakhs. The key document is also mandatory for goods and services over Rs 2,00,000.

Hefty Fine: Every individual must obtain this key document because financial details need to be submitted or shared for various reasons. An individual must remain vigilant for a few important things regarding PAN otherwise there is a hefty fine of Rs 10,000 even for a small error.

To avoid inviting legal hassles or paying a fine of Rs 10,000, Indian residents must fill the 10-digit PAN number with extreme care. If the individual makes any spelling error while filling the PAN details, he/she will have to pay a hefty fine.

If An Individual Has 2 PAN Cards: In such a scenario, the I-T Department can cancel the PAN card and will levy a fine in the form of penalty, according to the rules. In case of any lapse in PAN Card, the bank account may also get frozen. Therefore, the individual carrying 2 PAN cards, must surrender the second PAN card to the concerned department without any delay as per the guidelines specified below:

As per section 272B of the I-T Act, 1961, an individual providing wrong PAN information may be fined Rs 10,000 by I-T Department. The provision is specifically applicable during the time of filing Income Tax Return (ITR) form or in other scenarios where PAN card details require to be filled.

How to Surrender Second PAN Card? The individual can adopt both online and offline method to surrender the second PAN. There are forms available for surrendering the second PAN card. Individual can download the form from the Income Tax website simply by clicking on the button, "Request For New PAN Card Or/And Changes Or Correction In PAN Data link on the website.

Individual need to fill the form and submit to any National Securities Depository Limited (NSDL) office. When an individual surrenders the second PAN Card, make sure to submit the card along with the form. It can also be done online.

It is worth noting that if an individual is found with 2 PAN Card, he may be fined with Rs 10,000 fine, as per section 272B of the Income Tax Act, 1961. Therefore, the individual must surrender the second PAN Card at the earliest.