PAN Card: What is the penalty for having two PAN cards, and what should you do if you have more than one?
PAN cards, like Aadhaar cards, have become essential documents. It's difficult to conduct any financial transactions without a PAN card. For example, providing a PAN card is mandatory for receiving a salary from a company, and it's also required for any scheme that provides financial assistance.
First, let's understand the penalties for having two PAN cards.
What are the penalties?
Across India, each individual is issued only one PAN card number. This number is linked to the individual's identity. Having two PAN cards is considered a crime under Section 272B of the Income Tax Act.
Regarding the penalty, according to this rule, such an individual can be fined Rs. 10,000. Furthermore, if there are serious charges like tax evasion, imprisonment is also possible.
What to do if you have two PAN cards?
Sometimes, people mistakenly end up with two PAN cards. If this has happened to you, let's see how you can rectify it. If a person has two PAN cards, they should cancel the extra one.
You can do this by visiting the NSDL or UTIITSL website and filling out the "Request for Surrender of Duplicate PAN" form.
What does a PAN number mean?
A PAN number is based on the personal information you provide. The first three characters of the PAN number are English letters. These can be anything between AAA and ZZZ.
The fourth character indicates the cardholder's tax category. For example, if the cardholder is an individual, it is represented by the letter P. A company is represented by the letter C.
The fifth character is the first letter of your surname. For example, if the surname is Sharma, the 5th character will be S. The subsequent numbers are determined by the Income Tax Department.
In this way, different PAN cards are designed for different individuals.
Disclaimer: This content has been sourced and edited from Navbharat Times. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
