PAN 2.0: Is holding multiple PANs legal? What are the penalties for having more than one? Check all key details

The Income-tax Act of 1961 states that an individual is not allowed to hold more than one PAN card. In case one has multiple PAN (Permanent Account Number) cards, they must inform their Jurisdictional Assessing Officer to have the additional PAN card(s) deactivated.

“As per the Income-tax Act, no individual is allowed to hold more than one PAN. If a person does hold multiple PANs, they must inform the Jurisdictional Assessing Officer and request the additional PAN to be deactivated or deleted. Under PAN 2.0, the system has been enhanced with improved logic to identify duplicate PAN requests. This centralized and advanced mechanism will help minimize instances of individuals holding more than one PAN”, the finance ministry said in a statement.

What is the penalty for having more than one PAN card?

A fine of ₹10,000 can be charged to those who possess more than one PAN card. According to Section 272B of the Income-tax Act, a ₹10,000 penalty will be imposed on taxpayers who fail to comply with PAN-related regulations. The provisions include not getting a PAN card when needed, knowingly submitting incorrect PAN details on documents and providing incorrect PAN to individuals collecting/deducting tax, as per the release.

What is PAN 2.0?

Under this, new PAN cards with QR codes will be issued to taxpayers for security and authentication purposes. Notably, QR codes have been on PAN cards since 2017-18. The new PAN cards will have dynamic QR codes that will help access the latest data.

New PAN cards will be issued only when a ‘specific request for updates or corrections is made’, including when an existing PAN cardholder needs a new one with a QR code.

The process will revamp PAN and TAN (Tax Deduction and Collection Account Number) services through digital transactions, offering faster, eco-friendly and cost-effective services to taxpayers. The government is looking to make PAN a 'common business identifier', clubbing PAN, TAN and TIN (Taxpayer Identification Number) under one.

Will existing cardholders have to apply for new PAN cards?

No, existing PAN cardholders do not have to apply for new PAN cards. However, very old PAN cards might not have QR codes, in which case one can apply for a new one optionally.

The entire process of upgradation, including the issuance of new PAN cards, will be done free of cost, Union IT Minister Ashwini Vaishnaw recently assured the citizens. The government has also assured that all current PAN cards will remain valid and fully functional after the upgrade process is complete. To request a new PAN card, valid reasons will have to be submitted.

How to cancel existing additional PAN card(s)?

To deactivate or cancel a PAN card, one must fill out the 'Changes or Correction in existing PAN data/ Reprint of PAN card' form on the NSDL (National Securities Depository Limited) website. In the form, one can declare any additional PANs they wish to cancel.

In order to do this offline, one must fill out Form 49A for Change or Correction in PAN with details of the PAN needed to be deactivated and submit it to the nearest PAN centre. This can also be done by sending a letter to the Assessing Officer of one’s jurisdiction with all the necessary details and documents.