Important Update: Attention, Permanent Account Number (PAN) card holders! Do not overlook this critical information. Continue reading to find out why there could be a fine of Rs 10,000 imposed by the government.
First, let’s understand the role and functions played by the PAN card and why it is a significant document in India. PAN is one of the most vital documents as it provides a unique identification number for both individuals as well as entities. PAN card’s importance lies in tracking financial transactions and ensuring compliance with income tax regulations.
In India, it is only possible to open a bank account or invest in securities by linking one’s PAN number. This unique identifier enables the government to monitor tax liability, financial transactions, and the cardholder’s identity.
What might lead the Income tax department to levy a fine of up to Rs. 10,000? Let us reveal the reason. Nation’s law prohibits anyone in the country from possessing multiple copies of the PAN or keeping more than one PAN card. It is a punishable offence to have duplicates or more than one PAN Card and anyone violating the law may face strict action.
If one applies more than once for PAN, sometimes multiple PAN cards or duplicates might be issued to an individual or an entity. This happens because the card may be issued either by the IT department or the outsourced agencies. If such a scenario arrives, the PAN holder may face an unpleasant situation.
If someone happens to have a similar problem, they must cancel one of their PAN cards. If someone does this act with ill intentions or to avoid taxes, the government can impose a fine of up to Rs 10,000 for such misconduct under section 272B of the Income Tax Act.