You must be well familiar with the PAN Card. It is a 10-digit alphanumeric number, issued by the Income Tax Department to any citizen of India who applies for it. PAN Card is also an identity proof and it is mandatory to quote it, for various financial transactions.
PAN is mandatory for opening a savings bank account, a purchase or sale which exceeds a value of Rs 2 Lakhs either through cash or card, purchase or sale of an immovable property worth Rs 10 Lakh or more, sale or purchase of a motor vehicle, post office time deposits, if you book a time deposit with a bank exceeding Rs 50,000 and even payment of cash exceeding Rs 50,000 for travel to any foreign country.
Many citizens of our country have multiple PAN Cards and use them to evade taxes. Multiple PAN Cards can be used for identity theft, making illegal financial transactions and even purchasing Benami properties. Now, PM Modi is chasing tax defaulters and the Government has launched a massive crackdown on duplicate or multiple PAN Cards to stop tax evasion. Do you have multiple PAN Cards? Here's what to do.
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The Government of India is really serious on chasing black money in the economy. 11 Lakh PAN Cards have been deactivated. Is your PAN Card deactivated? Check here. Wonder why so many of our citizens have multiple PAN Cards? Are all these citizens tax evaders or is there some other reason for this.
Well, it could just be because of lack of basic knowledge and awareness. Suppose you want to make a correction in your PAN, you simply apply for a new PAN, instead of applying for a PAN correction. You might have applied for a PAN and you did not receive it in time. You simply reapply and now you have two PANs. If you are a lady just married, you might have changed your city. This is very common among women, just after marriage. You would apply for a PAN in your new surname and now you have 2 PANs.
Having more than a single PAN is illegal. You would have to pay a penalty of Rs 10,000 under Section 272B of the income tax act. If you hold multiple PANs for willful evasion of taxes, you could even be prosecuted under the strict income tax laws. You require a PAN for many financial processes and transactions. Having multiple PANs can mess up your finances. Let's say you got your PAN in 2013 and filed your ITR for FY 2013-14 and FY 2014-15 using this PAN.
In 2015 you lost your PAN and instead of getting your PAN reissued, you simply applied for a new one. You used this new PAN to file ITR for FY 2015-16 and FY 2016-17. If the income tax department finds you have multiple PANs, one of your PAN will be deactivated. This will land you in a lot of difficulty.
Remember, just filing this form does this mean the income tax department will not ask you any questions. The tax department will check the ITR filed against these PANs, the income you have disclosed and also ask you a lot of questions. The tax officer may not cancel all these PANs immediately and take time to probe your request. You have to visit the tax officer and convince him why you have multiple PANs. If the tax officer is satisfied with your replies, the duplicate PANs are cancelled. If you are not a willful defaulter, you have no worries. Be Wise, Get Rich.
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