PAN Card Rules in India: A Rampur court convicted SP leader Azam Khan and his son Abdullah Azam for possessing two PAN cards and sentenced them to seven years in prison. They were also fined ₹50,000 each. This case serves as a significant lesson for ordinary citizens, as possessing more than one PAN card is a legal offense in India. The Income Tax Department takes strict action in such cases and can impose heavy fines.

Having two PAN cards is a crime.

In India, the Permanent Account Number (PAN) is a financial identity for any citizen, and a person is granted only one PAN in a lifetime. Possessing two PAN cards duplicates tax records, which, according to the Income Tax Department, is considered a violation of the law. Possessing duplicate PAN cards is punishable under Section 272B of the Income Tax Act.

What is the penalty and punishment for possessing a duplicate PAN card?

According to an India Today report, possessing two PAN cards is completely illegal and can result in a fine of up to ₹10,000. In many cases, if proven guilty of PAN misuse, fraud, or filing incorrect taxes, imprisonment can be imposed. The seven-year sentence imposed on Azam Khan and his son demonstrates the seriousness of this offense. The Income Tax Department takes strict action in such cases to maintain financial transparency.

How do you accidentally obtain two PAN cards?
Sometimes, people inadvertently obtain a second PAN card. For example, reapplying for a lost PAN, forgetting the old PAN, or obtaining a new PAN during a name or address change. In some cases, duplicate PANs are issued due to data entry errors by the agent or during the application process. In such cases, individuals should immediately surrender the additional PAN to avoid legal complications.

What are the disadvantages of having two PAN cards?
Having multiple PAN cards creates significant difficulties in tax filing because transactions are recorded on different PAN cards. This increases the risk of incorrect tax calculations, discrepancies in returns, and increased scrutiny by the department. Sometimes, tax refunds are even withheld. Banks and financial institutions consider this suspicious activity, which can lead to problems with loan approvals or investment matters. Therefore, having a duplicate PAN card poses a serious risk.

How to Surrender a Duplicate PAN Card
To surrender a duplicate PAN, Form 49A must be filled out, clearly stating which PAN should be kept active and which should be surrendered. This form can be submitted online on the NSDL or UTIITSL website, or at the nearest PAN Seva Kendra. Attaching a copy of the PAN and a cover letter completes the process. The receipt from the Income Tax Department proves that you have surrendered the additional PAN, thereby avoiding penalties and legal action.

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