The government announced that bread 2.0 project. PAN Card 2.0 will be distributed free of charge to all taxpayers. In conjunction with the announcement of Budget 2023, the government decided to make PAN the “common business identifier” for all digital systems of certain government agencies. The new PAN system has made it easier for government departments to detect if an individual has multiple PAN cards and if someone has given a wrong PAN number. Both of these are violations and can result in a fine of Rs 10,000. Tax experts say PAN 2.0 incorporates security measures such as dynamic QR codes to automatically detect duplicate PAN cards or incorrect information entered.
Under Section 272B of the Income Tax Act, 1961, Indian citizens are not allowed to have multiple PAN numbers. If you are found to have a duplicate PAN number, you may be asked to pay a penalty of Rs 10,000. The government has the necessary technology to check duplicate PANs. “As per the provisions of the Income Tax Act, 1961, no person can hold more than one PAN. If a person holds more than one PAN, he is obliged to inform the competent assessing officer and obtain it. In PAN 2.0, we have improved the system logic to identify potential duplicate requests for PANs and removed/deactivated additional PANs with a centralized and enhanced mechanism for resolving duplicates. A person holds multiple PANs,” the Ministry of Finance said in a press release dated November 26, 2024.
How and why you need to check for duplicate PAN cards issued in your name
There have also been cases where companies were established by taking forged documents containing PAN in someone else's name. There have also been reports of fraudulent companies using fraudulent documents, such as GST fraud and input tax credit fraud. Many of these fraudulent companies are caught with duplicate PANs where the original PAN holder had no idea that his name and details were being misused. Therefore, it is important to check if a duplicate PAN has been issued in your name and deactivate it.
Mihir Tanna, a chartered accountant, told Economic Times that you can check whether you have a duplicate PAN by contacting the competent assessing officer or by using the 'Check PAN status' feature on the e-filing ITR portal. He said he could. The PAN status check facility can be accessed through the Income Tax e-filing portal.
How to return duplicate PAN card
According to Protean's website, “You can complete and submit the PAN Change Request Application form by noting your current PAN at the top of the form. All other PANs that were assigned incorrectly ” form and a copy of the corresponding PAN card must be submitted for cancellation along with the form. ”
Other mistakes in PAN number and Aadhaar card that may lead to penalties
Under the same section of the Income Tax Act, if someone is found to have provided a wrong PAN number, the Income Tax Department can impose a penalty of Rs 10,000. This provision is applicable when filing an Income Tax Return (ITR) or in any other case where you are required to provide your PAN card number for filing. Also, if you don't remember your PAN, you can also quote your Aadhaar card number as the two documents are interchangeable. A penalty of Rs 10,000 is also applicable if a wrong Aadhaar number is given instead of PAN. In addition to this, if a transaction requires providing a PAN or Aadhaar number, fines may also be imposed on individuals who fail to provide it.
So, if you have two PAN cards, it is advisable to surrender one as soon as possible. Also, if you are not sure whether there is a duplicate PAN issued using your document, we recommend that you check now.
