Numbering it right: What to do if you have multiple PAN cards?
Recently, the government deactivated approximately 1.1 million Permanent Account Numbers (PAN). Most of these were deactivated because more than one was issued to the same person. Remember that it is illegal to have more than one PAN.
If you do, you should surrender all but one of such numbers. A lowdown. that, “There are chances that when a person applies for a PAN, and it is not received within some time, he reapplies for it. Several women who change cities after marriage apply for a new PAN with their new surname,” added Gupta.
In the recent drive, 1,566 PANs have also been identified as ‘fake’, which means that these were allotted to either non-existent persons or in the names of persons with false identities. “There are people who already have a PAN and they knowingly apply for multiple PANs with mala fide intentions of splitting their income or assets to different PANs; using multiple PANs for taking loans from banks; or entering into financial transactions based on incorrect or fake documents,” said Shailesh Kumar, director- direct taxation, Nangia & Co LLP. more than one PAN is illegal. “There is penalty of ₹10,000 under section 272 B of the Income-tax Act, 1961, which can be imposed in case of holding multiple PANs,” said Gupta. Further, “If the person holds multiple PANs for wilful evasion of taxes, the individual can also be liable for prosecution under incometax laws,” said Kumar. In addition, having multiple PANs can mess up your financial processes and transactions, because in many case you need to provide PAN— such as: while filing income tax returns (ITRs), opening bank accounts, buying and selling motor vehicles and property (especially above ₹50 lakh). In such cases use of multiple PANs can create problems. You can surrender a PAN using both online and offline processes.
The income-tax department has an electronic portal—https://incometax.intelenetglobal.com/pan/ pan.asp—for lodging PANrelated grievances through the Aayakar Sampark Kendra (ASK). You can use this portal to submit your grievances pertaining to an application for PAN submitted to either UTI Infrastructure Technology and Services Ltd (UTITSL) or National Securities Depository Limited (NSDL).
One can also surrender the new PAN over NSDL’s portal at https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html. Here you will have to fill and submit a ‘PAN Change Request’ application form by mentioning the PAN that you are using currently. The form also provides space to mention all other PAN(s) that may have been inadvertently allotted to you. A copy of the corresponding PAN cards should be submitted along with the cancellation request.
To surrender your PAN offline, you need to apply for a change or correction in your PAN. You can download the form for this from NSDL’s website at bit.ly/2fvnYEN. Mention the PAN you want to continue with on the top of the form and list all the PAN cards that may have been inadvertently allotted to you. Next, submit this form to your nearest UTI or NSDL Tax Information Network facilitation centre. However, before surrendering your PAN, check the status of your PAN on the income tax e-filing website—https://incometaxindiaefiling.gov.in/. Here, click the option ‘Know your PAN’ on the left hand side of the page and provide the necessary details as prompted.
This will let you know whether your PAN is active or has already been deactivated by the department.
Make sure to undertake this activity at the earliest to avoid inviting the wrath of the taxman.