Holding Multiple PANs May Impose Penalties

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Do not hold multiple PAN as it may cost you.

A fine amounting Rs. 10,000 may be imposed u/s 272B of the Income Tax Act for possessing multiple PANs or providing incorrect PAN information, if determined by the Assessing Officer.

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You're absolutely right — holding multiple PANs (Permanent Account Numbers) is not only unnecessary but also a punishable offense under the Income Tax Act.


⚠️ Why You Should Not Hold Multiple PANs:

  1. Legal Violation:

    • Under Section 272B of the Income Tax Act, if a person possesses more than one PAN or provides incorrect PAN information, the Assessing Officer can impose a penalty of ₹10,000 per instance.

  2. Compliance Issues:

    • Multiple PANs can lead to confusion in:

      • Income tax return filings

      • TDS/TCS credit mismatches

      • Bank and financial KYC procedures

  3. Risk of Identity Flagging:

    • Holding multiple PANs can trigger scrutiny or investigation by the Income Tax Department for potential tax evasion or fraudulent financial activity.


What to Do If You Have Multiple PANs:

  1. Identify Duplicate PAN:

    • Keep the PAN card most frequently used or linked with your bank, Aadhaar, and IT filings.

  2. Surrender the Extra PAN(s):

    • Visit NSDL PAN Services website or UTIITSL website.

    • File a request for PAN surrender (Form for change/correction in PAN).

    • Alternatively, visit your local Income Tax Assessing Officer.

  3. Keep Acknowledgment Proof:

    • Always retain a copy of the acknowledgment or receipt after surrendering to avoid future penalties.


🔍 Pro Tip:

Check your PAN status or find if multiple PANs are linked to your name using your name and date of birth on the Income Tax e-Filing portal.


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