[India], New Delhi, February 26: In order to enhance and streamline all PAN (Permanent Account Number)-related services via sophisticated e-governance, the government has started the PAN 2.0 initiative. This Central Board of Direct Taxes (CBDT) program, which has a budget of Rs1,435 crore, would modernize and combine all websites and platforms that provide PAN/TAN services into a single, cohesive system.

This project’s main objectives are to streamline PAN/TAN administration and application, cut down on processing time, improve taxpayers’ digital access and services, and strengthen data security.

Is It Possible for a Person to Own Multiple PAN Cards?

No individual may lawfully retain or own more than one PAN in accordance with the Income Tax Act of 1961. Legally, if someone is discovered to have more than one PAN card issued in their name, they must turn them over to the relevant Assessing Officer.

According to the CBDT’s newly published FAQs on PAN 2.0, “If an individual possesses multiple PANs, they must notify the Jurisdictional Assessing Officer and have the extra PAN removed or deactivated.”

What happens if the duplicate PAN is not turned in?

There may be severe repercussions if you are discovered to be in possession of many PAN cards. Individuals with several PAN cards may be subject to a penalty of up to Rs10,000 from the tax authorities under Section 272B of the Income-tax Act. If the tax agency finds the infraction via audits or checks, this penalty may be applied.

A person may not be aware of the legal ramifications if they own a second PAN card. However, the person will have to take remedial action when the duplicate PAN is found. The tax authority may start a penalty procedure if the extra PAN card is not turned in.

The following are the essential actions to voluntarily turn in extra PAN cards:

Online Procedure:

* Find the “Changes or PAN card correction in existing PAN data/Reprint of PAN card” form on the Protean eGov Technologies Ltd website.

* Complete all necessary fields and make sure your PAN card information is correct.

* Check the box in the ‘Contact Details’ column on the left.

* Indicate which more PAN numbers you would want to give up.

* Fill out the form, pay the costs, and attach any supporting documentation.

Procedure Offline:

* Complete and send Form 49A to the closest PAN Service Center for a PAN change or correction. Indicate the PAN number that has to be turned in clearly.

* As an alternative, submit a formal letter of request to the Assessing Officer in charge of your region. Give all of your personal information, including the PAN number that will be kept and the ones that will be deleted.

The repercussions of failing to turn over duplicate PANs

If someone is discovered to have more than one PAN card, the assessing officer may impose a penalty of Rs 10,000 in accordance with Section 272B of the Income Tax Act. Therefore, it is advised that you voluntarily relinquish any extra PAN cards that have been issued in your name in order to avoid fines.

Details of the PAN 2.0 Project

The PAN 2.0 initiative was started by the CBDT to improve the online experience for taxpayers requesting changes or corrections or applying for a new PAN allocation. Among the salient characteristics are:

* For convenience, all PAN/TAN platforms are integrated under a single gateway.

* Quicker online services with less paper effort.

* PAN will be given out for free, and e-PAN will be sent via email.

* Digital vaults for improved data storage and security.

* A dedicated contact center and helpdesk for taxpayer inquiries.

For current PAN cardholders, the switch to the PAN 2.0 system will be seamless. Every PAN card that is currently in use will still be completely valid. Through the integrated PAN 2.0 site, new PAN requests and modifications to current PAN data may be started.

In conclusion

An important step in modernizing India’s tax system is the PAN 2.0 Project. Nonetheless, it is essential that taxpayers understand the legal obligations pertaining to PAN cards. Multiple PAN card holding is prohibited and, if left unchecked, may lead to fines. Thankfully, there are both online and offline alternatives for relinquishing a duplicate PAN card, and the procedure is straightforward.

It is important for you to take immediate action and turn in any excess PAN cards you may have. You will stay out of trouble with the law and help the government’s online tax registration system run smoothly if you do this. Remember that the procedure will only get simpler under the new PAN 2.0 system, which has paperless choices and centralized services to improve consumer comfort and efficiency.