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Consequences Of Holding Multiple PAN Cards

IamCheated.com Research Team | June 04, 2018  1:40:pm

Many people apply for multiple PAN cards with the objective of creating a dual identity. Applying for multiple PAN cards is a fraudulent activity and cases are registered against such fraudsters. These are some of the common reasons why people apply for multiple PAN cards.

1. To reduce the tax burden by splitting up income and assets.

2. To erase bad credit history and apply for a loan.

3. To enter into financial transactions based on fake documents as they have bad intentions.

Consequences Of Holding Multiple PAN Cards?

Many citizens end up having multiple PAN cards unintentionally without knowing that this is illegal. In some cases, many people instead of applying for duplicate PAN cards, simply apply for a new one.

Applying for multiple PAN cards is quite easy as PAN application requires just basic information like name, mobile number, date of birth, address, father's name and so on. Unfortunately, this information can be easily manipulated. As the government has made it compulsory to link Aadhaar with PAN card, identifying such cases has become quite easy for the government.

What happens if you hold multiple PAN cards with different numbers?

According to Section 139A of the Income Tax Act, one person can hold only one PAN. If the person fails to comply with the provision of Section 139A and holds more than one PAN card, he will be charged a penalty of Rs 10,000. Before charging the penalty, the Assessing Officer will provide a hearing.  If the individual confirms that he had acquired multiple PANs unintentionally, the penalty of Rs 10,000 may not be charged.

How to surrender additional PAN cards?

You can surrender additional PAN cards using both the online and offline process.

Online process

To surrender additional PAN cards, you should visit the NSDL website and submit the ‘PAN Change Request’ application form. You should mention the PAN card which you would like to keep and cancel the rest.

Offline process

The additional PAN card can also be surrendered offline, by filling up Form 49A on the NSDL website or downloading the form and filling it. After filling up the form, you should submit it to the nearest UTI or NSDL TIN facilitation centre.

Just following these two processes will not ensure that the PAN will be cancelled. You should visit your jurisdictional Assessing Officer to convince that the additional PAN was acquired unintentionally.

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