PAN 2.0: Do You Have More Than One PAN? Here’s What You Should Do To Avoid Rs 10,000 Penalty
The government has made it clear that it will remove duplicate PANs from its system and penalise those who fail to comply with the new rules.
PAN 2.0: The Cabinet Committee on Economic Affairs (CCEA) recently approved the Income Tax Department’s PAN 2.0 Project, paving the way for a free upgrade to PAN cards featuring a QR code.
The PAN 2.0 Project is an initiative of the government aimed at modernising taxpayer registration through advanced e-governance. With an estimated budget of Rs 1,435 crore, it will revamp PAN services to provide a seamless digital experience to taxpayers.
“With an existing PAN database of 78 crore PANs and 73.28 lakh TANs, the project addresses the requirements of taxpayers, focusing on the consolidation of multiple platforms/portals and efficient services to PAN/TAN holders,” said a release from the Press Information Bureau (PIB) dated Nov. 26.
However, the existing PAN cardholders are not required to apply for a new PAN under the upgraded system.
Can You Have More Than One PAN?
If you think you have a duplicate PAN that has been issued using your documents, you may need to verify it to avoid penalties. The government has made it clear that it will remove duplicate PANs from its system and penalise those who fail to comply with the new rules.
According to the press release issued by the finance ministry, no individual can hold two PANs simultaneously.
“As per the provisions of the Income-tax Act, 1961, no person can hold more than one PAN. In case a person holds more than one PAN, he/she is obliged to bring it to the notice of the Jurisdictional Assessing Officer and get the additional PAN deleted/deactivated,” it said.
“In the PAN 2.0, with the improved systems logic for the identification of potential duplicate requests for PAN and a centralised and enhanced mechanism for resolving the duplicates, we would minimise the instances of one person holding more than one PAN,” the ministry said in its press release.
In another press release issued on Nov. 27, the finance ministry said a penalty of Rs 10,000 will be levied on those who fail to comply with the rules.
“Section 272B of the Income-tax Act imposes a penalty of Rs 10,000 for taxpayers who fail to comply with PAN-related provisions,” it said.
How To Surrender Your PAN?
According to the Protean website of the government, surrendering or cancelling a PAN is simple. Here are the steps:
Fill out and submit the PAN Change Request application form.
Mention the PAN that you are currently using on top of the form.
Mention any other PAN allotted to you in item no. 11 of the form. The corresponding PAN card copy/ies should be submitted for cancellation along with the form.
The PAN 2.0 project is aimed at simplifying and modernising the process of issuing and managing PAN and TAN, enhancing both the ease of access and efficiency.
