Permanent Account Number (PAN) card is an essential document for every individual and entity in India, primarily used for tax purposes. It is issued by the Income Tax Department and serves as a unique identification number for taxpayers.

However, in recent years, the government has seen an increase in the issuance of multiple PAN cards by individuals, which is illegal and a violation of the law.

To address this problem, the government is implementing stricter measures, including penalties for those holding more than one PAN card.

Here’s what you need to know about the PAN Card 2.0 initiative and how to avoid penalties.

WHAT IS THE PAN 2.0 CARD?

PAN Card 2.0 refers to the government’s new initiative to ensure that individuals do not hold multiple PAN cards. Holding more than one PAN card is illegal under the Income Tax Act and can lead to serious legal consequences.

The government has now made it mandatory for individuals to surrender any additional PAN cards they may hold and provide an explanation for obtaining them. If you have several PAN cards, you must now return the excess ones, under penalty of a penalty of up to €10,000.

WHY IS ISSUING MULTIPLE PAN CARDS A PROBLEM?

Multiple PAN cards can lead to various complications. They create confusion in the financial system and make it difficult to track income and taxes.

Additionally, some people use multiple PAN cards to hide their income, evade taxes or carry out fraudulent activities.

As a result, the government has taken stern measures to ensure that no one holds more than one PAN card.

WHAT TO DO IF YOU HAVE LOST YOUR EXTRA PAN CARD?

If you have lost your additional PAN card, you still need to declare it to the Income Tax Department. Follow these steps:

• Financial penalty: The Income Tax Department imposes a penalty of Rs 10,000 for each additional PAN card held.

• Legal action: In some cases, the government may take further legal action if it suspects tax evasion or other financial malfeasance.

• Taxpayer Identification Issues: Having multiple PAN cards can lead to problems with tax returns and delays in processing returns.

Do you hold multiple PAN cards? Go now to avoid a penalty

To check if you hold multiple PAN cards, follow these steps:

• Visit the Income Tax e-filing portal: Visit the official website of the Income Tax Department.

• PAN Card Details: Click on the “Know your PAN” link under the “Quick Links” section.

• Enter your details: You will be asked to enter information such as your name, date of birth and mobile number.

• Find duplicate PANs: If there are discrepancies or multiple records for your name, the system will notify you.

HOW TO RENDER EXTRA PAN MAPS?

If you find that you are holding more than one PAN card, here is how you can return the extra cards:

• Visit the Income Tax Portal: Access the official income tax website.

• Log in to your account: If you do not have an account, you will need to create one.

• Select the “Drop PAN” option: Find the ‘Surrender PAN’ section in the PAN services area of ​​the portal.

WHAT TO DO IF YOU HAVE LOST YOUR EXTRA PAN CARD?

If you have lost your additional PAN card, you still need to declare it to the Income Tax Department. Follow these steps:

• File a complaint: Report the loss to the income tax office.

• Submit a rebate request: Follow the same steps as for returning the additional PAN card. Mention the lost card and provide the necessary details.

• Fill out the form: Enter the PAN number you wish to transfer.

• Submit documents: You may need to provide documents explaining why you have multiple PAN cards. You can also submit a self-declaration if necessary.

• Confirmation: Once submitted, you will receive a confirmation message or email from the Income Tax department stating that your additional PAN card has been successfully returned.

• File a complaint: Report the loss to the income tax office.

• Submit a rebate request: Follow the same steps as for returning the additional PAN card. Mention the lost card and provide the necessary details.

WHY SHOULD YOU COMPLY?

Complying with the government directive to return additional PAN cards and avoid penalties is crucial for several reasons:

• Avoid legal problems: If you do not return your additional PAN card, you risk fines and possible legal action.
• Ensuring accurate tax returns: By maintaining a single PAN card, you ensure that your tax returns and financial information are recorded correctly.
• Contribute to a clean financial system: Surrendering your additional PAN cards helps eliminate confusion and prevent fraudulent activities, thereby contributing to the overall integrity of the tax system.

The PAN Card 2.0 initiative aims to ensure that taxation and financial transactions in India remain transparent and free from fraudulent activities. If you hold more than one PAN card, it is essential to act now, return the additional cards and avoid penalties of Rs 10,000. By doing so, you can ensure that your tax returns and personal finances remain compliant with Indian tax laws.