PAN 2.0 Project : The central government has announced a major change regarding PAN card, one of the essential documents for the citizens of India. The Cabinet Committee on Economic Affairs (CCEA) has approved the PAN 2.0 project. Its objective is to make the process of issuing and managing PAN, tax deduction and TAN easier and more secure.
To clear the doubts of taxpayers, the Income Tax Department has issued frequently asked questions (FAQs) related to the PAN 2.0 project. One of the questions in the FAQ is that if someone has more than one PAN, how can he surrender it and avoid penalty.
How to identify extra PAN card?
According to the Press Information Bureau (PIB), as per the provisions of the Income Tax Act 1961, no person can hold more than one PAN. If a person has more than one PAN, he is bound to surrender the extra PAN. In the PAN 2.0 project, the incidence of a person holding more than one PAN will be reduced.
So if you have got an extra PAN issued or have got it somehow, then you should immediately cancel it by informing the Income Tax Department about it.
What is the penalty for having more than one PAN?
According to the Income Tax Act, no person is allowed to have more than one PAN. According to Section 272B of the Income Tax Act, the Income Tax Officer can impose a fine of Rs 10,000 on you for having more than one PAN card.
What is the procedure for surrendering extra PAN?
According to the PAN service website Protean, “For this, you will have to give a request for PAN change to the Income Tax Department, in which you will also mention the current PAN number. Apart from this, you will have to mention the number of all other PANs given inadvertently. Along with this form, Form 11 and copies of the respective PAN card will have to be submitted for surrender.
Is there a need to change the PAN card under PAN 2.0?
The answer is no. The PAN card will not be changed unless the PAN card holder wants any change or correction in it. In this way, the existing valid PAN cards will continue to work under PAN 2.0.