The government of India has launched the PAN 2.0 project, a significant upgrade to the existing PAN card system aimed at improving tax compliance and security. The new PAN 2.0 cards will be issued at no cost to all taxpayers, in line with the Budget 2023 announcement. This initiative introduces the concept of PAN as a “common business identifier” across digital systems used by specified government agencies. With advanced features such as a dynamic QR code and enhanced duplicate detection, PAN 2.0 aims to streamline the tax framework and reduce fraudulent practices.
PAN 2.0: Features and Benefits
Unified Business Identifier
PAN 2.0 serves as a universal identifier, integrating various government agencies’ databases for seamless operation. This measure simplifies processes for businesses and individuals while enhancing government oversight.
Enhanced Security and Duplicate Detection
A key feature of PAN 2.0 is its ability to detect duplicate or incorrect PAN numbers instantly. The system’s advanced logic ensures that no individual can hold multiple PAN cards, which is a violation of Section 272B of the Income Tax Act, 1961. Taxation experts note that the dynamic QR code on PAN 2.0 will prevent misuse and ensure the integrity of the information.
Penalties for Violations: Duplicate or Incorrect PAN Usage
Consequences of Holding Multiple PAN Cards
According to Section 272B of the Income Tax Act, it is illegal for any Indian citizen to possess more than one PAN card. Individuals found with duplicate PANs may face a penalty of Rs 10,000. The Ministry of Finance announced that the advanced systems in PAN 2.0 would identify and resolve duplicate requests centrally, minimizing the occurrence of multiple PAN cards.
Penalties for Incorrect PAN or Aadhaar Details
Providing incorrect PAN or Aadhaar numbers can also lead to penalties. For instance, quoting an incorrect number while filing income tax returns or for mandatory transactions may result in fines of up to Rs 10,000. The government has clarified that Aadhaar can be used interchangeably with PAN for many transactions, but accuracy is crucial to avoid penalties.
Importance of Checking for Duplicate PANs
Rising Cases of PAN Misuse
Fraudulent practices involving duplicate PAN cards have been increasing. In many instances, fraudsters have used duplicate PAN cards to create fake companies and evade taxes. GST and input tax credit frauds often involve such bogus documents, leaving the original PAN holders unaware of the misuse of their credentials.
Steps to Verify Duplicate PAN Cards
Here are the steps to verify if you have a duplicate PAN card:
- Online Verification:
- Visit the Income Tax e-Filing portal: https://www.incometax.gov.in/iec/foportal/
- Click on “Verify Your PAN” from the left-hand panel.
- Enter your PAN number, full name, date of birth, and mobile number.
- Click “Continue”.
- Enter the OTP received on your mobile number and click “Validate”.
- The system will display your PAN details, including its status (active or inactive).
- Through NSDL Website:
- Visit the NSDL website: https://www.nsdl.com/
- Click on “Services” and then “PAN”.
- Select “Know Your PAN”.
- Enter your full name, date of birth, and PAN number.
- Click “Submit”.
- You will receive an email or SMS with your PAN details.
Chartered Accountant Mihir Tanna emphasizes the importance of regular checks to prevent potential misuse of personal details.
How to Surrender Duplicate PAN Cards
You can surrender your duplicate PAN card through two methods:
1. Online:
- Visit the Income Tax e-Filing Portal: Go to the official website of the Income Tax Department.
- Locate the “Surrender Duplicate PAN” Option: Look for this option under relevant services.
- Provide Required Information: Enter details like your PAN number, date of birth, and contact information.
- Submit the Request: After entering the necessary details, submit your request.
2. Offline:
- Write a Letter: Draft a letter addressed to the Income Tax Officer of your jurisdiction.
- Mention Details: Specify your PAN number, date of birth, and reason for surrendering the duplicate PAN card.
- Attach Documents: Enclose a photocopy of the duplicate PAN card.
- Submit the Letter: Submit the letter to the nearest Income Tax office or send it by post.
This process ensures compliance and helps avoid penalties associated with duplicate PAN ownership.
Common Mistakes and Preventive Measures
PAN-Aadhaar Interlinking Errors
As Aadhaar and PAN are interchangeable for many transactions, individuals must ensure the accuracy of the details to avoid penalties. Any mistake, such as quoting the wrong Aadhaar number instead of the PAN, can lead to fines.
Transactional Compliance
Failing to provide PAN or Aadhaar in mandatory transactions, such as property purchases or bank deposits, may also result in penalties. Taxpayers should double-check their documents and update details as needed.
You Learn
PAN 2.0 represents a significant advancement in India’s tax compliance framework, promoting transparency and reducing fraudulent activities. Taxpayers are encouraged to verify their PAN details, ensure compliance, and surrender duplicate cards if necessary. By adopting PAN 2.0, both individuals and businesses can contribute to a more robust and secure financial ecosystem.
As the government continues to enhance the ease of doing business and improve tax systems, taxpayers must remain vigilant and proactive to align with the evolving regulatory landscape.
इसे हिंदी में भी पढ़ें: PAN 2.0: डुप्लिकेट PAN कार्ड की पहचान और Rs 10,000 जुर्माने से बचें
