Having two PAN cards? You may end up paying Rs 10,000 penalty; Here's how to cancel multiple PAN cards

New Delhi | Jagran Business Desk: Permanent Account Number or PAN - a unique 10-digit number allotted by the Income Tax Department - is the most important financial identity in India. Having a PAN card is mandatory for income tax payers and also to make purchases or transactions above a certain limit.

While the I-T Department rules clearly specify that a person cannot have more than one PAN card, there have been many instances where people are found having multiple PAN cards.

Some people intentionally apply for more than one PAN card so that they can apply for loans if their credit score linked to the previous one is bad. Some also hold multiple PAN cards to reduce their tax liability by splitting up their income on two or more PAN cards.

However, Section 272B of the Income Tax Act clearly states that if someone has two PAN cards, he may end up paying a penalty of up to Rs 10,000.

There are several people who hold multiple PAN cards unintentionally. For instance, if someone loses his PAN card and applies for a new one instead of requesting for a duplicate of the original card. Also, in many cases of women, when they get married, they apply for a new PAN card to change their maiden name instead of requesting for an update in their original card.

With linking of PAN with Aadhaar Card now mandatory, it has become easier for the I-T Department to identify those who hold more than one PAN card. Even if you are holding more than one PAN card unintentionally, you may end up paying a hefty penalty for failing to comply with provisions of Section 139A. 

If one holds multiple PAN cards, he/she should surrender the ones, other than the original PAN card. One can get the multiple PAN cards both online and offline. 

• Log on to NSDL website - www.onlineservices.nsdl.com. Go to "Application Type" drop-downselect the “Changes or Correction in existing PAN Data/Reprint of PAN Card (No changes in existing PAN Data)” option. 
• Fill the form and click 'Submit'. Note down the token number given following the registration. 
• Click on "Continue with PAN application form" option. Upload the scanned images as reqiuired. 
• Make the required payment via demand draft, credit card, debit card or internet banking.
• Mention the PAN you want to retain and others which you want to surrender. 
• Select the proof of identity and address you want to submit. 
• Get the downloadable acknowledgement for future reference and a proof of payment. 
• The acknowledgement needs to be sent to NSDL e-Gov along with fix two photographs.