Two PAN Cards Rule: Possessing two PAN cards is considered illegal under the law. It is a punishable offense under Section 272B. Sometimes, it can be considered an attempt to evade taxes or conduct fraudulent transactions.
No one should possess two PAN cards. If someone accidentally or intentionally creates two PAN cards, it is considered a punishable offense. A similar case has emerged in which senior Samajwadi Party leader Azam Khan and his son have been convicted by the Rampur MP/MLA court for possessing a fake PAN card.
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The allegation was that Abdullah Azam Khan had obtained a second PAN card to show his age as higher than the minimum age required to contest elections , and that Azam Khan was also involved in this conspiracy. Both have been sentenced to seven years in prison and fined ₹50,000 each.
Now let’s understand the full Income Tax rules regarding PAN numbers…
In fact, PAN is not just an identification card; it bears witness to all financial transactions. From opening a bank account to entering the stock market, from filing ITR to making purchases worth lakhs, everything hinges on this 10-digit number. According to the Income Tax Act, every citizen should have only one PAN number.
To make India’s income tax system transparent and streamlined, the government has implemented the PAN (Permanent Account Number) as a mandatory document. PAN is used to link all financial transactions of any individual or entity to a single identification number.
What are the problems if you have two PAN cards?
In such a situation, if someone is found to have two PAN cards, it is considered illegal. It is a punishable offense under Section 272B. While this offense carries a fine of ₹10,000, misuse of a fake PAN card carries a hefty fine and punishment.
Having two PANs can create difficulties in everything from opening a bank account to updating KYC and applying for a loan. If two different PAN numbers are listed on a person’s documents, it can even lead to bank account freezes. How can one file an ITR with two PANs? Because the system does not accept returns from individuals with two PAN cards.
Sometimes this can be seen as an attempt to evade taxes or commit fraudulent transactions. Having two PANs can create problems with Aadhaar-PAN linking, making the matter suspicious. It’s believed that most people obtain a second PAN card for fraudulent purposes, but if caught, they could face jail time.
The real problem begins when the department suspects you’re using two PAN cards to evade taxes, conceal transactions, or launder money. An investigation begins, as having a second PAN card clearly means financial identity fraud.
What to do if two PAN cards have been fraudulently made?
If someone has been mistakenly issued two PANs, there is a solution. According to the Income Tax Department, the additional PAN can be surrendered online or offline. This process is completed on the NSDL or UTIITSL website under the ‘Surrender Duplicate PAN’ option. The department then deactivates the additional PAN until the investigation is complete.
Therefore, it is very important that every citizen uses only one PAN number in his documents.
PAN is required for these works
- – PAN number is mandatory for financial transactions.
- – PAN number is required while opening a bank account.
- PAN is required for bank transactions of more than Rs 50,000.
- – Purchase of more than Rs 2 lakh (like jewellery).
- – PAN number is required for property purchase/sale.
- – PAN is required for mutual funds, stock market and insurance.
- – PAN is required while filing ITR.
- – PAN is considered a valid identity card at many places. But it is not an address proof.
- – PAN is mandatory for all companies, firms, LLP, trusts and institutions.
