The income-tax Act, of 1961 says a person cannot hold more than one PAN. A penalty of Rs. 10,000/- is liable to be levied under section 272B of the act 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).

Why person hold more than one pan card?

Having multiple Permanent Account Numbers (PAN) is illegal in India as it is a unique identifier for individuals, companies, and other entities for tax purposes. The government has made it mandatory to quote PAN on various financial transactions to track and monitor financial activities and prevent tax evasion.

However, there can be instances where an individual or an entity may end up having more than one PAN card due to errors in the PAN application process, incorrect spelling of the name, or other such reasons.

Having multiple PAN cards is a serious violation of tax laws and can attract penalties, fines, and even criminal charges. The government has launched various initiatives to track and identify individuals and entities with multiple PAN cards and take necessary legal action.

Therefore, it is advisable to ensure that you have only one PAN card and surrender any duplicate PAN cards in your possession to the Income Tax Department.

What are the steps taken government to stop these multiple pan card holders?

The government of India has taken several steps to prevent individuals and entities from holding multiple Permanent Account Numbers (PAN) cards, which is illegal. Some of the steps taken are:

1. PAN Database Integration: The government has integrated all PAN databases and linked PAN with Aadhaar, which is a unique biometric identification number, to prevent the issuance of multiple PAN cards to the same individual or entity.
2. PAN Verification: The government has made it mandatory to verify the PAN with Aadhaar to prevent individuals and entities from holding multiple PAN cards.
3. Tracking and Monitoring: The government has implemented various measures to track and monitor financial transactions and identify individuals and entities with multiple PAN cards.
4. Legal Action: The government has taken legal action against individuals and entities who are found to be holding multiple PAN cards, including imposing fines and penalties, and launching criminal proceedings.
5. Awareness Campaigns: The government has launched various awareness campaigns to educate taxpayers about the importance of having a single PAN card and the consequences of holding multiple PAN cards.

These steps taken by the government have helped in reducing the number of individuals and entities holding multiple PAN cards and ensuring the integrity of the PAN system.