PAN 2.0: Holding Multiple PAN Cards? Here’s How to Avoid a ₹10,000 Penalty

The Cabinet Committee on Economic Affairs (CCEA) has approved the Income Tax Department’s PAN 2.0 Project, introducing free upgrades to PAN cards featuring QR codes.

What is the PAN 2.0 Project?

The PAN 2.0 initiative aims to modernise taxpayer registration with advanced e-governance. With a budget of ₹1,435 crore, the project will enhance PAN services and create a seamless digital experience for taxpayers.

“With a database of 78 crore PANs and 73.28 lakh TANs, this initiative consolidates multiple platforms to deliver efficient services to PAN and TAN holders,” stated the Press Information Bureau (PIB) on November 26.

Existing PAN holders do not need to reapply for a new PAN under this upgraded system.

Is It Legal to Hold More Than One PAN?

Holding more than one PAN is illegal under the Income Tax Act, 1961. If you suspect you have a duplicate PAN, it’s essential to take action to avoid penalties.

According to the Finance Ministry, individuals must inform their jurisdictional Assessing Officer and request the cancellation of any additional PAN.

“With PAN 2.0, improved system logic and centralised mechanisms will help identify and resolve duplicate PANs, minimising instances of individuals holding multiple PANs,” said the ministry.

Failing to comply with these rules could result in a penalty of ₹10,000, as outlined in Section 272B of the Income Tax Act.

Also Read- How to Change Photo on PAN Card- All Steps Explained

How to Surrender a Duplicate PAN

The process of surrendering or cancelling a duplicate PAN is straightforward:

1. Submit the PAN Change Request Form: Fill out the form available on the Protean website.
2. Provide Your Primary PAN: Mention the PAN you currently use at the top of the form.
3. List Additional PANs: Enter any other PANs issued to you in item no. 11 of the form.
4. Attach Copies: Submit the copies of all duplicate PAN cards for cancellation along with the form.

Benefits of PAN 2.0

The PAN 2.0 Project aims to simplify and modernise the management of PAN and TAN systems. With enhanced technology, it will improve accessibility and efficiency, making tax compliance easier for individuals and businesses.

Stay proactive and ensure your PAN details are accurate to avoid penalties and benefit from the upgraded system.