PAN 2.0: Do You Have an Extra PAN Card? Will That Invite Penalties? Here’s How to Surrender Additional PAN Cards

The government has rolled out the PAN 2.0 Project to streamline taxpayer registration and modernize Permanent Account Number (PAN) services with a budget of Rs 1,435 crore. This initiative aims to enhance user experience, increase efficiency, and offer seamless digital interactions for PAN and Tax Deduction Account Number (TAN) holders.

What Happens If You Have More Than One PAN Card?

According to the Income-tax Act, 1961, holding multiple PAN cards is not allowed. The Central Board of Direct Taxes (CBDT) has emphasized that individuals must inform the Income Tax Department and get the additional PAN deactivated or canceled. Under the PAN 2.0 system, advanced detection mechanisms will minimize the issuance of duplicate PANs, but it’s important to act if you find you have been issued more than one.

How to Cancel Additional PAN Cards

Online Process

1. Visit the NSDL website and fill out the “Changes or Correction in existing PAN data/ Reprint of PAN card” application form.
2. In the Contact Details section, check the box to indicate which additional PAN(s) you wish to surrender.
3. Upload the necessary documents, make the payment, and submit the form.
4. After successful payment, you will receive an acknowledgment slip.

Offline Process

1. Complete Form 49A (for Change or Correction in PAN) indicating the PAN to be surrendered.
2. Submit the form to the nearest PAN center and retain the acknowledgment.
3. Alternatively, you can write a letter to the Assessing Officer with your details and the duplicate PAN information. Be sure to keep a copy of the acknowledgment for your records.

What Happens If You Don’t Cancel Extra PAN Cards?

According to Section 272B of the Income Tax Act, failing to surrender an additional PAN can lead to a penalty of Rs 10,000. It is important to cancel any extra PAN cards to avoid penalties and ensure compliance.

What is PAN 2.0?

PAN 2.0 is a technology-driven transformation of PAN and TAN services. Key objectives include:

• Centralizing all PAN/TAN-related services on a single portal, which will simplify user access.
• Reducing paperwork by promoting paperless processes.
• Issuing PAN free of cost and speeding up processing times.
• Enhancing security features, including the introduction of a PAN Data Vault for added protection of personal information.

The new system consolidates existing services and offers streamlined processes, reducing the need for physical paperwork. Through the PAN 2.0 portal, users will be able to manage their PAN and TAN services efficiently, including requesting e-PANs, reprints, and updates.

What Happens to Your Old PAN Card?

Your existing PAN card remains valid under the new system, and you are not required to apply for a new one unless you need updates or corrections. Current PAN cards will continue to function as usual unless an explicit update or change is requested by the holder.

In conclusion, if you have more than one PAN card, it is essential to follow the steps to surrender the extra one, to avoid penalties and comply with the new PAN 2.0 regulations.