Permanent Account Number or PAN is a means of identifying individual taxpayers. PAN card is a 10 digit unique identification alphanumeric number given to Indians, mostly those who pay taxes. PAN is allotted to a unit or individual by the Income Tax Department. PAN is a number, PAN card is a physical card which contains the PAN number along with name, date of birth, father’s or spouse’s name and photo.
Copy of PAN card can be submitted as proof of identity or date of birth. But many times it is seen that people get more than one PAN card made, but is it legally valid or not? Many people are not even aware of this. Let us get information related to the validity of PAN card here.
What does the income tax rule say?
According to Section 139A (7) of the Income Tax Act, no person can apply for, hold, or obtain more than one Permanent Account Number or PAN under the new series. According to Bankbazaar, a person should not have more than one PAN card. This is not legal. However, it is not illegal to have two physical copies of the same PAN card number. The second copy will be considered a duplicate copy.
Having more than one PAN may also result in a fine. Under Section 272B of the Income Tax Act, a penalty of Rs 10,000 is imposed for holding multiple PANs, which is determined by the Assessing Officer. Defaulters get an opportunity to explain themselves, and this section also applies to furnishing incorrect PAN information.
Why is PAN important?
PAN card is important for taxpayers as it is required for all financial transactions and is used to track the movement of your money. This is important while paying income tax, obtaining tax refunds and receiving communications from the Income Tax Department. The Income Tax Department also recommends linking PAN with Aadhaar.
