Section 272B of the Income Tax Act clearly states that if someone has two PAN cards, he may end up paying a penalty of up to Rs 10,000.
New Delhi | Jagran Business Desk: Permanent Account Number or PAN – a unique 10-digit number allotted by the Income Tax Department – is the most important financial identity in India. Having a PAN card is mandatory for income tax payers and also to make purchases or transactions above a certain limit.
While the I-T Department rules clearly specify that a person cannot have more than one PAN card, there have been many instances where people are found having multiple PAN cards.
Some people intentionally apply for more than one PAN card so that they can apply for loans if their credit score linked to the previous one is bad. Some also hold multiple PAN cards to reduce their tax liability by splitting up their income on two or more PAN cards.
However, Section 272B of the Income Tax Act clearly states that if someone has two PAN cards, he may end up paying a penalty of up to Rs 10,000.
There are several people who hold multiple PAN cards unintentionally. For instance, if someone loses his PAN card and applies for a new one instead of requesting for a duplicate of the original card. Also, in many cases of women, when they get married, they apply for a new PAN card to change their maiden name instead of requesting for an update in their original card.
Source: sea.operanewsapp.com
