How to Surrender PAN If Two PANs Are Issued
In India, having more than one Permanent Account Number (PAN) is not allowed. Occasionally, taxpayers may inadvertently get two PANs due to name spelling variations, multiple applications, or administrative errors. Holding multiple PANs can lead to complications with filing income tax returns and may attract penalties.
If you discover that you have been issued two PANs, it is important to surrender one PAN promptly to comply with Income Tax regulations. Here’s a step-by-step guide:
Step 1: Identify the Active PAN
Determine which PAN is valid and should be retained. Typically, you should keep the PAN linked to your existing bank accounts, investments, and tax filings.
Step 2: Fill the PAN Surrender Application
You need to submit a request to NSDL or UTIITSL, depending on where the PAN was issued. The application for surrender requires:
• Details of both PANs (the one to be retained and the one to be surrendered)
• Personal information: full name, date of birth, and contact details
• Proof of identity (Aadhaar, passport, voter ID, etc.)
• A brief explanation for having two PANs
Forms and applications are available on the NSDL and UTIITSL websites.
Step 3: Submit the Application
Submit the completed application along with necessary documents either online or at designated centers of NSDL or UTIITSL. Ensure that all details are accurate to avoid delays.
Step 4: Verification by the Income Tax Department
The Income Tax Department will verify your application. Once verified, the duplicate PAN will be deactivated. You will receive confirmation that the surrender has been processed.
Step 5: Update Records
After surrendering the duplicate PAN, make sure that your bank accounts, investments, and tax filings reflect the valid PAN to avoid future discrepancies.
Key Points to Remember
• Penalty: Holding multiple PANs is punishable under the Income Tax Act. Prompt surrender avoids penalties.
• Timely Action: Surrender the duplicate PAN as soon as you discover it.
• Professional Assistance: Chartered Accountants can help ensure correct documentation and avoid errors in the surrender process.
Conclusion
Surrendering a duplicate PAN is a simple process if approached correctly. It ensures compliance with tax laws and prevents complications in future financial transactions. For assistance with PAN issues, income tax filings, or related compliance matters, consult a qualified Chartered Accountant.