PAN Card Update: Have 2 PAN Cards? Check Penalty For Duplicate PAN And What Income Tax Department Says

Permanent Account Number (PAN) Card, a ten-digit alphanumeric number, acts as an identifier for the "person" with the tax department. PAN Card enables the department to link all transactions of the "person" with the department. These transactions include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN Card is also mandatory for numerous other financial transactions such as opening bank accounts, in bank account, a deposit of cash in bank accounts, opening of Demat account, transactions of immovable properties, dealing in securities, etc.

Do you know that holding more than one PAN Card is not allowed in India? This means an individual cannot hold two PAN Cards.

The Income Tax Department says that a person cannot hold more than one PAN. "A penalty of Rs. 10,000/- is liable to be imposed under section 272B of the Income-tax Act, 1961 for having more than one PAN. If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s)," it says.

Thus, to avoid this penalty of Rs 10,000, all you have to do is to apply for the surrender of an additional PAN card.

You can apply for the surrender of your PAN Offline and online. According to the ClearTax website, the offline procedure to apply for the surrender of PAN card is:

Step 1 Fill up Form 49A for Change or Correction in PAN, mention the PAN number to be surrendered, and submit the form to the nearest UTI or NSDL TIN facilitation center. Save a copy of the Acknowledgment for future reference

Step 2 - Write a letter addressed to the Assessing Officer of your jurisdiction (You can find your Jurisdiction officer from www.incometaxindiaefiling.gov.in (Know your Jurisdiction Officer). Mention your personal details such as the full name on your PAN card, date of birth (or date of incorporation in case of companies or firms), PAN card number to be retained, and details of duplicate PAN card being surrendered, and keep the acknowledgment received.

Step 3 - At the time of submission of the Letter mentioned in Point 2 above, also enclose a copy of the Duplicate PAN to be surrendered along with the Acknowledgment Copy obtained from the NSDL TIN facilitation center as obtained in Point 1 mentioned above.

Submit signed acknowledgment, demand draft (if needed), and documents within 15 days to:
NSDL e-Gov at 'Income Tax PAN Services Unit, NSDL e-Governance Infrastructure Limited, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune - 411 016.

How to surrender a duplicate PAN card Online?

• Go to the NSDL website and access 'PAN Change Request Online Form' page.
• Select "Changes or Correction in existing PAN Data/Reprint of PAN Card" from "Application Type."
• Fill out the form, including citizenship, category, title, etc. Click 'Submit.'
• Note the token number sent to email. Click "Continue with PAN Application Form."
• Choose submission method: Aadhaar-based e-KYC/e-Sign, Digital Signature Certificate, or physical submission.
• Complete all fields, indicate PANs to surrender, and select checkboxes. Click 'Next.'
• Select proof of identity, residence, and date of birth for submission.
• Scan and upload photo, signature, and required documents. Ensure authorized signatures.
• Review application preview, edit or proceed to payment.
• Make payment through demand draft, credit/debit card, or internet banking.
• Download acknowledgment after successful payment.
• Attach photos, sign acknowledgment, label envelope, and mail to NSDL e-Gov.