PAN 2.0 Project: Do You Have an Extra PAN?

PAN 2.0 Project: Do You Have an Extra PAN?

Steps to Surrender Additional PAN Card to Avoid Penalty

Synopsis

The Cabinet Committee on Economic Affairs (CCEA) has approved the Income Tax Department’s PAN 2.0 Project, a revolutionary initiative aimed at simplifying and streamlining the issuance and management of Permanent Account Numbers (PAN) and Tax Deduction and Collection Account Numbers (TAN). The project’s goal is to make the entire process user-friendly, eco-friendly, and efficient.

The Income Tax Department, via the Press Information Bureau (PIB), recently addressed taxpayers’ concerns through a series of FAQs. Among these, one key focus is on individuals holding multiple PAN cards—a situation that could lead to legal and financial complications.

Why You Should Avoid Holding Multiple PANs

As per the Income Tax Act, 1961, holding more than one PAN is illegal. Section 272B of the Act stipulates a penalty of ₹10,000 for individuals found in possession of multiple PAN cards. With the advanced mechanisms introduced in PAN 2.0, identifying duplicate PANs will become more efficient, leaving little room for oversight.

If you discover you hold an additional PAN, take immediate action to surrender it and avoid hefty penalties.

How to Surrender Your Additional PAN Card

Follow these steps to surrender your extra PAN card:

1. Visit the Protean Website:

Go to the Protean PAN services portal or the UTIITSL portal.

2. Fill Out the PAN Change Request Form:

Mention the PAN you intend to keep on the top of the form.

List the additional PAN(s) under Item No. 11 of the form.

3. Attach Supporting Documents:

Provide photocopies of all PAN cards, including the one you wish to retain, and the additional PAN(s) you wish to surrender.

4. Submit the Form:

Submit the completed form and documents online or at a physical PAN service center.

Once processed, the additional PAN(s) will be canceled or deactivated.

Key Features of PAN 2.0

The PAN 2.0 initiative brings significant upgrades:

Unified Portal: All PAN/TAN services will be integrated into a single platform, eliminating the need to visit multiple websites.

Paperless Process: The new eco-friendly system will enable seamless online applications and updates.

Free PAN Issuance: PAN cards will be issued at no cost with faster processing times.

Enhanced Security: A secure PAN Data Vault will protect your personal and demographic details.

Dedicated Support: A centralized helpdesk will assist users with queries.

Updates and Corrections under PAN 2.0

You can update or correct details such as name, date of birth, address, mobile number, and email free of cost after the PAN 2.0 system launches.

Until then, use the Aadhaar-based online correction service for free or visit the Protean or UTIITSL portals for other updates.

Is It Necessary to Apply for a New PAN under PAN 2.0?

No. Existing PAN cards remain valid under the upgraded system. Individuals are not required to apply for a new PAN unless they need corrections or updates.

Conclusion

The PAN 2.0 Project is a game-changer, making the process of managing PAN and TAN simpler and more secure. If you have more than one PAN, surrender the additional card promptly to comply with legal requirements and avoid penalties. With its eco-friendly approach, unified portal, and enhanced security, PAN 2.0 is poised to revolutionize India’s tax management ecosystem.

Stay compliant and make the most of these new-age features—your financial future depends on it!

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