In India as per Income tax department, Permanent Account Number (PAN) is a unique ten-digit alphanumeric number which is a compulsion for each and every individual including students. Many of us do not know the importance of PAN Card, Let us know some of the important topics related to PAN which we should know, as an Indian. Having PAN is a compulsion so what about having Multiple PAN or Duplicate PAN card.
Before we know this, let us first understand:
What is PAN? Who should have PAN?
As per Indian Income tax department PAN i.e Permanent Account Number is a 10 digit alpha numeric numbers which is given to a person who applies for the PAN or to whom the department allots without an application. Income tax department has the complete authority to recognise and allot the PAN to any individual or assesses. PAN gives identity to an individual in Income tax department.
Every transactions like tax payments, returns of income, specified transactions, TDS/TCS credits, correspondence are linked with Income tax department through PAN. Indian Government has made PAN (Permanent Account Number) as an identifier for tax with Income tax department. PAN is a number allotted and PAN card is a physical laminated card with ten-digit alphanumeric number, date of issue(as per Recent Updates), date of birth, name, signature of individual. From 1 January 2005 its mandatory to quote each transactions with income tax department. Income tax department has a long list of financials transactions that needs to be linked with your PAN. Its also a compulsion in India to link PAN with Aadhaar card .
As per Indian Income tax department, section 139A of the Income-tax Act, 1961 has laid the framework for PAN, Rule 114 of the Income-tax Rules, 1962 , form 49A or 49AA laid manner of applying for PAN, Rule 114B, Rule 114C are also followed by department. There is also rule of penalty in case an Indian don't follow section 139A. Hence its very clear PAN is a legal. PAN is for Income Tax Returns it is not considered as proof of Indian citizenship.
Why You Should Not Have Duplicate PAN Card? Is It Legal?
As per local research many people accidentally end up with multiple PAN which becomes a punishable act even without their knowledge, one of the important reason why Individuals / Corporate Entities hold more than one Pan Card is reapplication of PAN in certain circumstances.
Many people do not know Correction of PAN is completely different from Reapplication. Sometimes people reapply for PAN several times due to various reason like name change/ change of DOB or delay in delivery of previous PAN application and end up with multiple PAN cards. India is heavily populated and there are people who don't have knowledge about PAN and it's application.
- In order to avoid Tax Payment and save earnings to cheat government which is completely illegal.
- Reapplication of PAN card, NRI's visiting India to have continuous transaction services they end up with multiple cards. After marriage women usually change their surname and apply for new PAN instead of Name Correction.
- A person can have only one PAN Card also one PAN is not allotted to 2 People even if they are related. National Securities Depository Limited (NSDL) provides the online services related to application and modification of PAN.
According to Income tax department one can not have more than one PAN card, means No multiple or duplicate PAN card is allowed by Government of India. If a person has a PAN card an individual can not apply for another PAN card.
One Should Not Have Duplicate PAN Card Because:
1. Section 272B of Income tax act 1961 is applicable to the person in case of Multiple/Duplicate PAN Card, A huge amount (10,000 Rs/-) of penalty is imposed in such case.
2. Its illegal to have Duplicate PAN Card:
Section 139A (7) Income Tax Department says:
No person who has already been allotted a permanent account number under the new series shall apply, obtain or possess another permanent account number.
if you end up with multiple cards, one should surrender the Duplicate PAN Card. Many individual/entities hold multiple PAN to avoid Tax, Income tax department have complete right to take legal action immediately, even without information.
3. Financial transactions/ Procedures are carried in reference to PAN, PAN can provide the data related to any kind of Tax Payments/Transactions, An ideal PAN Profile is beneficial for an individual for various finance related task in banking sector , Having multiple PAN will confuse and mess the financial procedures, also may consider you as fraud.
If in case Individuals / Corporate Entities hold duplicate Pan Card, NSDL which provides all services online will help you to get rid Duplicate PAN card and surrender the PAN card. As per Income-tax department both Online and Offline (Form 49A ) procedures are available to surrender duplicate PAN. spreading the knowledge about PAN, PAN CARD, avoiding Duplicate PAN Cards is also important.
In India as per Income Tax Department its illegal to have multiple PAN Cards, If any individual/entity has multiple PAN its recommended to surrender the cards in order to avoid the penalty / legal actions.