Duplicate PAN Card Penalty: How to Avoid & Other Key Details

A PAN card, issued by the Income Tax Department, is a unique identifier assigned to taxpayers in India. Individuals and entities cannot hold more than one PAN card. The Income Tax Department levies a duplicate PAN card penalty for individuals holding multiple PAN cards. Learn in detail about duplicate PAN cards and penalty imposition for such holding.

What Is the Penalty for Holding a Duplicate PAN Card?

An individual or entity can hold a single PAN card as per the Income Tax Department. Therefore, if your PAN card is lost or damaged, report it to the Income Tax Department promptly and apply for a duplicate to continue with your tax-related activities. It is important to note that possessing more than one PAN card is a punishable offense and may attract a penalty ranging from ₹10,000 to ₹1 lakh.

What Are the Reasons Behind Having Multiple PAN Cards? 

A person may end up with two PAN numbers due to various reasons, such as:

• In case there are incorrect details on a PAN card, you need to apply for rectifications. Such a situation might result in multiple PAN cards.
• Sometimes, if a person does not receive their PAN card within a certain period, they might reapply, unintentionally ending up with multiple PANs. 
• Many women, after relocating post-marriage, apply for a new PAN with their updated surname. However, the correct approach is to update the surname on their existing PAN card.
• Some individuals may deliberately apply for multiple PAN cards to evade taxes or deceive the government. Such actions are illegal and can lead to strict penalties.

How to Avoid a Duplicate PAN Card Penalty?

Here are the ways to avoid duplicate PAN cards:

• Report lost or damaged PAN cards to the Income Tax Department immediately.
• Verify your PAN details and notify the Income Tax Department of any errors.
• Surrender any additional PAN cards you may have unknowingly or accidentally obtained.
• Stay informed about PAN-related rules to avoid unintentional violations.

How to Surrender Duplicate PAN Cards?

In case you hold multiple PAN cards, you need to surrender the additional PAN cards in the following way:

Step 1: Visit the official NSDL website and fill in the necessary form. Ensure you enter the details for ‘Changes or Correction in Existing  PAN Data/Reprint of PAN Card’.

Step 2: Fill in the PAN card details and choose the check box before you apply to surrender or cancel additional PAN cards.

Step 3: Upload the relevant documents and pay the applicable fees before you submit the form.

Step 4: You will receive an acknowledgement slip on successful completion of the process.

Final Word

Holding more than one PAN card is a violation, as the Income Tax Department permits only a single PAN per individual. If you own multiple PAN cards, surrender the extras immediately to avoid a duplicate PAN card penalty.

When booking fixed deposits, providing your PAN details ensures only 10% TDS is deducted. If you fail to furnish your PAN, the TDS rate doubles to 20%, increasing your tax burden. Make sure your PAN is ready before making a deposit to avoid unnecessary deductions.

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