The permanent Account number popularly known as PAN card is introduced in the year 1972 introduced to address the loopholes of GIRs existed before it. The PAN card is issued to all judicial entities by the income tax department under the supervision of CBDT to prevent tax evasion.
Section 139 A of the Income Tax Act 1961, clearly states that a person who received a permanent account number as per new series should not apply, possess or obtain another permanent account number. A person holding more than one PAN card is subjected to a penalty of RS 10,000 according to section 272B of the Income Tax Act. The income tax officer has the discretion to impose a fine or not for holding more than 2 PAN cards as he will examine the underlying objective of the person holding it. The provisions of the Income Tax Act gives the defaulter an opportunity to being heard.
A person who has been issued a PAN card a long time back and needs to change the address when moves to another place. To avoid the complex procedure of changing the address, he may apply for a new PAN card. In the above case, the individual has committed a fault but the objective was to avoid an error. But sometimes a person may apply for a second PAN card fraudulently to get a loan when he lost his credibility, which is considered a crime and will get a penalty.
Surrender of PAN Card
1. Visit the NSDL website
2. Choose the PAN correction option, fill out personal details and click submit.
3. A new page is opened and a new token generated is sent to the email ID mentioned in the first step.
4. Choose the option “Submit scanned images through e-Sign” and input the PAN number you do not want to surrender.
5. Fill out personal details on the left and click next.
6. Enter the PAN number you want to surrender and click next. Preview your application form.
7. Pay Rs 110 within India or Rs 1020 abroad
8. Take a printout of the acknowledgment and sent it to NSDL e-Gov within 15 days as per the instructions and necessary documents.
The PAN correction form is presented to the nearest collection center of NSDL with a letter to the jurisdictional Assessing Officer for cancellation of the duplicate PAN card number. Sometimes an affidavit is required to produce in front of the Assessing Officer stating that the individual has only one PAN card that is in use and the PAN card that has been canceled. The PAN card number which has to be canceled should be mentioned in column 11 of the form with a Xerox copy of the same. The person has to visit the concerned assessing officer for convincing him that the duplicate PAN card was accidentally obtained.