PAN Card Holders Alert: It is very important that you have only one PAN card. Holding two PAN cards is not allowed.
PAN Card Holders Alert: Permanent Account Number ie PAN Card is an important document for all types of financial transactions. Pan is essential for almost everything, but carrying it with you can be a bit risky. There is a fear of losing it and at the same time, if someone gets hold of it, then no one should misuse it.
PAN card is an important document that helps the Income Tax authority to keep track of all the financial transactions which are required to assess the tax liability of an individual or a company. This helps in reducing the possibilities of tax evasion.
However, we have to take care of some things. For a minor lapse, a person may have to pay a fine of Rs 10,000.
Keep this in mind
Apart from filling the 10 digit information carefully, a person should have only one PAN card. A person who has two PAN cards may have to pay a fine. The Income Tax Department will cancel the PAN card as per the law and also impose a fine as a punishment. Also, if there is a discrepancy in the PAN, the bank account can be frozen. The second PAN card should be sent to the department immediately as per the established procedures.
A person providing incorrect PAN information can be fined Rs 10,000 by the Income Tax Department. This provision is especially important while filing Income Tax Return (ITR) form or in other scenarios where PAN card details need to be entered.
Therefore, if you have two PAN cards, you should immediately give one of them to the Income Tax Department.
How to return
- Go to the website of IT department incometaxindia.gov.in.
- Click on ‘Request for new PAN card/change’ or ‘Correction PAN data’.
- Download the form, fill and submit it at any National Securities Depository Limited (NSDL) office.
How to check if your Aadhaar is linked to your PAN card?
1. Visit the Income Tax e-filing portal. Click on the ‘Link Aadhaar Status’ under the quick links on the homepage.
2. Enter your PAN and Aadhaar number and click ‘View Link Aadhaar Status’.
Now, if your PAN & Aadhaar is not linked, you will see a pop-up as shown below. You can follow these steps to link them.
Consequences of not linking PAN with Aadhaar card
When the PAN-Aadhaar cards are not linked within the last date, it becomes inoperative as a result of which:
- Taxpayers cannot file ITR or claim ITR with inoperative PAN cards.
- The pending returns will not be processed, and pending refunds will not be issued to inoperative PAN cards.
- The TCS/TDS will be applicable at a higher rate.
- The TCS/TDS credit will not appear in Form 26AS, and TCS/TDS certificates will not be available.
- Taxpayers will be unable to submit 15G/15H declarations for nil TDS.
- The following transactions cannot be done since the PAN card will be inoperative:
- Open a bank account.
- Issue of debit/credit cards.
- Purchase of mutual funds units.
- Cash deposit with a bank or post office during a day exceeding Rs.50,000.
- Purchase of a bank draft or pay order in cash exceeding Rs.50,000 in a day.
- A time deposit with banks, Nidhi, Non-Banking Financial Corporations (NBFCs), etc., exceeding Rs.50,000 or aggregating to more than Rs.2,50,000 during a financial year.
- Payment for one or more prepaid payment instruments as defined by the Reserve Bank of India (RBI) through bank draft, pay order or banker’s cheque aggregating to more than Rs.50,000 in a financial year.
- Sale or purchase of goods or services by any person more than Rs.2,00,000 per transaction.
- All bank transactions exceeding Rs.10,000.
However, the PAN can be made operative again in 30 days, upon intimation of Aadhaar number to the prescribed authority after payment of fee of Rs.1,000.
Penalty for non-linking of PAN with Aadhaar card
The taxpayers who have not linked their PAN-Aadhaar within the last date of 30th June 2023, can do so by paying a late penalty of Rs.1,000. They must pay the penalty before filing for the PAN-Aadhaar link on the Income Tax website. However, they need to ensure they have a valid PAN number, Aadhaar number and mobile number to pay the penalty.
How to activate inoperative PAN card and link with Aadhaar card?
When the PAN card is not linked with the Aadhaar card, it becomes inoperative. However, individuals can re-activate their PAN card by paying the penalty for non-linking PAN with an Aadhaar card.