Permanent Account Number or PAN Card use has become mandatory for most banking transactions. In fact, like Aadhaar Card, the 10-digit number card is mandatory for availing various welfare measures being run by the government. However, it is important to know that one should fill PAN details very carefully as giving wrong information can lead to an up to Rs 10,000 penalty. In fact, those who have more than one PAN card are also advised to surrender the one that is not in use because it also leads to heavy penalties.
As per the Income Tax Act 1962, Section 272(B) permits the Income Tax Department to impose a penalty of up to Rs 10,000 on the person who has given the wrong PAN card information. The Income Tax Department may cancel PAN cards for giving wrong information. Even an error in the name is not permitted. So, check each and every detail very minutely after filling in your PAN Card details. So, if you are going to file your Income Tax Return (ITR), you are advised to fill in your 10-digit PAN details carefully and avoid any kind of penalty.
This is how to surrender another PAN card
The process of surrendering PAN is easy. There are common forms for this. You can download it from the Income Tax website. For this, you can download the form by clicking on the link ‘Request For New PAN Card Or/ And Changes Or Correction in PAN Data’ on the website. After this, fill the form and submit it to any NSDL office. While surrendering the second PAN card, submit the same along with the form. You can do this online also.
To be noted, earlier, the fine was limited to PAN. However, ever since the PAN-Aadhaar interchangeability came into force last September, the penalty has been extended to Aadhaar too.
a) You provide false Aadhaar numbers in lieu of PAN.
b) You fail to provide either your PAN or Aadhaar in specified transactions.
c) You only give your Aadhaar number and fail to authenticate your biometric identity then it will attract a hefty fine.
Note: Not only individuals, even banks, financial institutions, etc can also be fined if they fail to ensure that the PAN or Aadhaar are duly quoted and authenticated under the new rules.
The fine of Rs 10,000 is levied on each such case which means if one gives the wrong Aadhaar number in 2 forms then you can be fined ₹20,000.