The PAN (Permanent Account Number) card is a unique ten-digit alphanumeric identifier issued by the Income Tax Department to individuals, businesses, and other entities. It serves as proof of identity and is essential for a range of financial activities, such as opening bank accounts, applying for loans, filing income tax returns, and making investments.
What Is PAN Card Used For?
The PAN Card contains information such as the holder’s name, photograph, date of birth, and PAN number. The PAN number is unique to each cardholder and is used as a reference number for all financial transactions. The PAN Card is an essential document for anyone who earns a taxable income in India and in carrying out certain financial transactions like dealing in real estate and mutual funds.
Can A Person Have Two PAN Cards in India?
As per the rules and regulations set by the Income Tax Department, individuals are prohibited from possessing or holding more than one PAN Card. Each individual is allowed to have only one PAN Card issued in their name, which is unique to them and cannot be transferred to anyone else.
Having more than one PAN Card can lead to legal consequences and penalties, as it is considered to be a violation of the Income Tax Act. It can also confuse the income tax records, making it difficult for the authorities to track an individual’s tax payments and filings accurately.
Penalty For More Than One PAN Card
If an individual is found to possess more than one PAN Card, the IT Department may initiate proceedings against them under Section 272B of the Income Tax Act, 1961. As per this section, a penalty of Rs. 10,000 can be imposed on the individual for possessing more than one PAN Card.
Therefore, individuals should ensure that they possess only one PAN Card and to surrender any additional PAN Cards that they may have acquired inadvertently or otherwise.
Linking of PAN With Aadhaar
The Finance Act, 2017 had inserted a new section 139AA in the Income Tax Act, 1961, requiring every person who is eligible to obtain Aadhaar to quote his/her Aadhaar number while applying for PAN or furnishing return of income with effect from July 1, 2017.
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