New Delhi [India], February 25: The government has launched the PAN 2.0 project to improve and consolidate all PAN (Permanent Account Number) related services through advanced e-governance. With a budget of ₹1,435 crore, this initiative by the Central Board of Direct Taxes (CBDT) will modernise and integrate all platforms and portals providing PAN/TAN services into one unified system.
The key goals of this project include simplifying PAN/TAN application and management, reducing processing time, improving digital access and services for taxpayers, and enhancing data security.
Can an Individual Have More Than One PAN Card?
As per the Income Tax Act 1961, no person can validly hold or possess more than one PAN. Any individual found to have more than one PAN card issued under their name is legally required to surrender the additional PAN card(s) to the jurisdictional Assessing Officer.
The recently released FAQs on PAN 2.0 by the CBDT state: “In case a person holds more than one PAN, he/she is obliged to bring it to notice of Jurisdictional Assessing officer and get the additional PAN deleted/de-activated.”
What Happens if you Don’t Surrender the Duplicate PAN?
If you are found to be in possession of more than one PAN card, it can have serious consequences. The Income-tax Act, Section 272B, gives the tax authorities the power to impose a penalty of up to ₹10,000 on individuals holding multiple PAN cards. This penalty can be imposed if the tax department discovers the violation during audits or checks.
Typically, if a person holds an additional PAN card, they may not be aware of the legal implications. However, once the duplicate PAN is discovered, the individual will be required to take corrective action. If the additional PAN card is not surrendered, the tax department may initiate a penalty process.
Here are the key steps to surrender additional PAN cards voluntarily:
Online Process:
- Visit the Protean eGov Technologies Ltd website and locate the form for ‘Changes or PAN card correction in existing PAN data/ Reprint of PAN card’.
- Fill in all required information and verify PAN card details accurately.
- Check the box on the left margin of the ‘Contact Details’ section.
- Specify any extra PAN numbers that you wish to surrender.
- Attach supporting documents, pay fees and submit the completed form.
Offline Process:
- Fill and submit Form 49A for Change/Correction in PAN to the nearest PAN Service Center. Clearly indicate the PAN number to be surrendered.
- Alternatively, send a written request letter to the Assessing Officer having jurisdiction over your area. Provide all personal details along with the PAN number to be retained and those to be cancelled.
Consequences of not Surrendering Duplicate PANs
As per Section 272B of the Income Tax Act, the assessing officer can levy a penalty of ₹10,000 if an individual is found to possess more than one PAN card. Therefore, to avoid penalties, it is advisable to voluntarily surrender any additional PAN cards issued under your name.
PAN 2.0 Project Details
The CBDT has initiated the PAN 2.0 project to enhance the digital experience of taxpayers applying for fresh PAN allotment or seeking any updates/corrections. Some key features include:
- Integration of all platforms providing PAN/TAN under one portal for simplicity.
- Faster online services with minimal physical paperwork.
- PAN to be provided free of cost with e-PAN delivered on email.
- Enhanced data security and storage through digital vaults.
- Dedicated helpdesk and call centre for taxpayer queries.
The transition to PAN 2.0 system will be smooth for existing PAN card holders. All current PAN cards will continue to remain fully valid. Fresh PAN requests and updates to existing PAN data can be initiated through the integrated PAN 2.0 portal.
Conclusion
The PAN 2.0 Project is a significant step towards modernising the taxation system in India. However, it is crucial for taxpayers to be aware of the legal requirements regarding PAN cards. Holding multiple PAN cards is illegal and can result in penalties if not rectified. Fortunately, the process for surrendering a duplicate PAN card is simple, with both online and offline options available.
If you have an extra PAN card, it is in your best interest to act swiftly and surrender it to the authorities. By doing so, you will avoid any legal issues and contribute to the smooth functioning of the government’s digital tax registration system. Keep in mind that under the new PAN 2.0 system, the process will only get easier, with centralised services and paperless options designed to enhance efficiency and user convenience.
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