PAN card holders ALERT! Holding more than one PAN allowed? Any penalty? Check details here from Income Tax department

A PAN Card is a card that contains a ten-digit unique alphanumeric number issued by the Income Tax Department.

PAN enables the department to identify and link all transactions of the PAN holder with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence etc.

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Who can obtain a PAN?

According to Income Tax Department PAN can be obtained by:

1. Every person if his total income or the total income of any other person in respect of which he is assessable during the year exceeds the maximum amount which is not chargeable to tax.

2. A charitable trust who is required to furnish return under Section 139(4A).

3. Every person who is carrying on any business or profession whose total sale, turnover, or gross receipts are or is likely to exceed five lakh rupees in any year.

4. Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory.

5. Every non-individual resident persons and persons associated with them shall apply for PAN if the financial transaction entered into by them during the financial year exceeds Rs 2,50,000.

Can you hold more than one PAN?

Those who already have a PAN Card or are willing to apply need to know that holding of more than one PAN is not allowed. A person cannot hold more than one PAN.

If he/she does so then a penalty can be imposed on the person. As per the information provided by Income Tax Department a penalty of Rs 10,000 is liable to be imposed under section 272B of the Income-tax Act, 1961 for having more than one PAN.

If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s).