New Delhi: If you have a PAN card, this news is extremely important for you. The Income Tax Department and the Government of India have implemented new rules related to PAN cards. Failure to comply with these rules could result in your PAN card being deactivated and you could face a fine of up to ₹10,000.
The PAN card has become a necessary document for almost every financial transaction—from opening a bank account to buying or selling property, investing in shares or bonds, and filing income tax returns. Therefore, the government has mandated linking the PAN and Aadhaar cards to make the tax system transparent and streamlined.
Significance of the new rules
Under Section 272B of the Income Tax Act, if a person misuses his PAN card, provides incorrect information or holds more than one PAN card, he can be fined up to ₹10,000.
What mistakes can lead to a fine?
- Having more than one PAN card: Many people accidentally or intentionally obtain two PAN cards, which is completely illegal. In such cases, you should surrender one card immediately.
- Providing incorrect information: Filling incorrect name, date of birth or address in the application form may also attract a penalty.
- Not linking your PAN with Aadhaar: If you haven’t linked your PAN with Aadhaar yet, the government may deactivate your PAN card. Banking and financial transactions will not be possible with an inactive PAN.
Ways to avoid fines
- Make sure you have only one PAN card.
- Link your PAN with Aadhaar. This process can be easily done online on the Income Tax Department’s website.
- File your income tax return on time. Even if your income is not taxable, file it anyway.
- Correct incorrect information on your PAN card immediately. Always ensure that information such as your name, date of birth, or address is accurate.
What will change in 2025?
The government has indicated that both PAN and Aadhaar will be required for all major financial transactions—such as deposits, investments, or property purchases exceeding ₹50,000—from 2025. If your PAN is not linked, it could be blocked and financial transactions could be halted.
Precautions
- Do not give your PAN details to any stranger.
- Use PAN only for legitimate financial transactions.
- Get the documents updated online or at the nearest NSDL/UTIITSL centre.
- It is very important to follow these government rules so that your PAN card remains safe and you can avoid any financial penalty.
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