two pan cards

What to do if you have two PAN? Steps to surrender duplicate PAN card

PUBLISHED ON: Aug 24 2023

In today's digitized world, the significance of having a valid PAN (Permanent Account Number) is undeniable. However, issues may arise when you possess two PAN cards. According to the Government of India, under Section 139A of the Income Tax Act of 1961, holding more than one PAN card is illegal, and you may be penalized or even jailed. Hence, ensuring that you only have one active PAN number is crucial.

Consequences of Holding Two PAN Cards

Owning two PAN cards with different numbers is a serious offence in India. A PAN Card serves as a unique identifier to track all your financial transactions, preventing tax evasion. The government has now made it mandatory to link one's Aadhaar with their PAN Card, further making it essential to surrender any additional cards you may possess.

As per Section 272B of the Income Tax Act, an individual could face a penalty of INR 10,000 if caught with more than one PAN card. Individuals can surrender their additional PAN cards through a simple process to avoid such severe consequences.

Despite these regulations, it's not uncommon for individuals to end up with two PAN cards, especially in the following scenarios:

Where Changes/Corrections in PAN are Required: Often, people apply for a new PAN card when corrections are needed in their existing PAN details instead of applying for the corrections.

Multiple Applications: Sometimes, when the PAN card isn't received within the expected time, individuals might reapply, resulting in two PAN cards with different numbers.

New PAN after Marriage: Some women, after changing their surnames post-marriage, apply for a new PAN card rather than updating the existing one.

Fraudulent Purposes: Although less common, some people might intentionally apply for multiple PANs to deceive the government or evade taxes.


Process For Surrendering Additional PAN

The process can be carried out easily and conveniently through the NSDL TIN website. Here's a step-by-step guide to help you navigate through the process of surrendering one if you have two pan cards:

Step 1: Visit the NSDL TIN Portal

Start by visiting the official NSDL TIN web portal, which provides tax-related services to taxpayers, including PAN Card Apply services.

Step 2: Navigate to PAN Services

Click on the 'Services' tab at the homepage's top and select the 'PAN' option from the dropdown menu.

Step 3: Choose the Change/Correction in PAN Data Option

Find and click on the 'Apply' option on the PAN services page under the 'Change/Correction in PAN data' section.

Step 4: Select Your Application Type

Click on 'Application Type' and, from the dropdown menu, select the 'Changes in existing PAN Data(No changes in existing PAN Data)' option.

Step 5: Select Your Category

From the 'Category' dropdown menu, choose 'Individual.'

Step 6: Fill Out the Form

Now, fill out the given form with accurate details. Be sure to mention the PAN card you wish to retain and the one you wish to surrender. Once filled, click on 'Submit'. A token number will be created and sent to your registered email address after successful submission.

Step 7: Take Note of Your Token Number

Ensure to jot down this token number for future reference and then proceed by clicking on the 'Continue with PAN Application Form' icon.

Step 8: Submit Scanned Images via e-Sign

Select the 'Submit scanned images through e-Sign' on the redirected webpage.

Step 9: Mention the PAN to Retain

At the bottom left corner of the page, you will be required to input the PAN number you wish to retain.

Step 10: Fill Out Personal Details

On the next page, fill out your personal details, including your contact number.

Step 11: Mention the PAN to Surrender

Mention the details of one of your two PAN cards you wish to surrender, then click 'Next.'

Step 12: Select the Appropriate Proofs

Select the appropriate Proof of Identity, Residence Address, and DOB(Date of Birth) on the following page.

Step 13: Upload Required Images and Signatures

Next, upload scanned images of your photograph, signatures, and relevant documents. If you are a company or a partnership firm/LLP, an authorized signatory (a Director or a Partner, respectively) must sign the acknowledgement receipt.

Step 14: Preview and Verify Your Application

Once you have successfully submitted your details, preview your application form. Verify the information and make corrections if necessary.

Step 15: Make the Payment

Proceed to make the essential payment via Credit Card, Internet Banking, Debit Card, or Demand Draft.

Step 16: Download and Print the Payment Acknowledgement

After successful payment, download and print a soft copy of the payment acknowledgement for future reference.

Step 17: Send a Printed Copy to NSDL e-Gov

Send a hard copy of the acknowledgement to the National Securities Depository Limited eGovernment, along with two attached photographs.

Step 18: Label the Envelope

Before sending, label the envelope as 'Application for PAN Cancellation' along with the Acknowledgment Number.

Step 19: Mail Your Application

Finally, mail your signed acknowledgement (along with the Demand Draft if that payment option was chosen) to:

NSDL e-Gov at 'Income Tax PAN Services Unit,

NSDL e-Governance Infrastructure Limited,

5th Floor, Mantri Sterling,

Plot No. 341, Survey No. 997/8,

Model Colony, Near Deep Bungalow Chowk,

Pune – 411 016

Surrendering PAN in Special Circumstances

Having a Permanent Account Number (PAN) card is of utmost importance for Indian residents and businesses. However, in the event of death, business closure, or relocation of a foreign national, one might find themselves in a situation where they need to surrender one of their two PAN cards. This section outlines the steps to do so under these specific circumstances.

Surrendering PAN of Deceased

In the unfortunate event of the death of a PAN card holder, the relatives of the deceased are required to initiate the surrender process. A letter must be drafted and sent to the respective jurisdiction's Income Tax Officer. This letter should include vital information such as the deceased's name, PAN number, date of birth, and the reason for surrendering the PAN card - in this case, the cardholder's demise. The death certificate must be attached as a necessary document. This process of surrendering the PAN card is also applicable to non-Indian residents and Foreign Nationals.

In conclusion, managing financial and legal documentation such as your PAN card is an important responsibility. If you find yourself with two PAN cards or need to surrender a card due to a change in circumstances, swift action is crucial to remain in compliance with Indian law. If you need assistance navigating these complex processes, the experts at Lawgical India are here to help. Providing comprehensive legal and financial solutions, our team is committed to guiding you every step of the way to ensure a smooth and convenient experience.

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