A PAN card is a person's financial identity. A person is issued only one PAN card in their lifetime. Possessing two PAN cards is considered a crime under the Income Tax Act.

A Rampur court has sentenced SP leader Azam Khan and his son, Abdullah Azam, to seven years in prison for possessing two PAN cards. The conviction of Azam Khan and his son has sparked a nationwide debate on such cases. The court also imposed a fine of ₹50,000 each on Azam Khan and his son. It is now clear that possessing multiple PAN cards in India is a legal offense, and the Income Tax Department can take strict action in such cases. So, let us tell you today how much punishment you could face if you possess two PAN cards with different numbers.

Why is it a crime to have two PAN cards?

Just as the Aadhaar card is considered a person's identity in India, the PAN card, or Permanent Account Number, is considered a person's financial identity. A person is issued only one PAN card in their lifetime, but possessing two PAN cards is considered a crime under Section 272B of the Income Tax Act. This includes provisions for strict action.

What is the punishment for possessing two PAN cards?

If a person intentionally or accidentally obtains a second PAN card, it is also considered a crime. A fine of up to ₹10,000 can be imposed for this offense. If proven to be fraud or tax evasion, it can also result in a jail sentence. Furthermore, with Azam Khan and his son being sentenced to seven years in prison, it is clear that the government takes such cases seriously.

Why do people obtain two PAN cards?

Many people obtain two PAN cards to evade taxes or conceal their income. Many people are also unknowingly issued two PAN cards. For example, when applying for a new PAN card after losing it, when changing the name, address, or date of birth, or due to an agent or data entry error, two PAN cards are issued. In all these situations, having an extra PAN card is considered a crime. Therefore, it is important to cancel the second PAN card immediately.

If you have two PAN cards, do this immediately.

If you have accidentally issued two PAN cards, there is no need to panic. This can be rectified. If you have an extra PAN card, you can cancel it. To do this, first visit the NSDL or UTIITSL website. Then fill out the Request for Surrender of Duplicate PAN form. You will need to indicate which PAN card you want to keep and which one you want to cancel. After submitting the form, keep the receipt. After this process, your extra PAN card will be cancelled and you will not be involved in any legal action.