Income Tax News: The citizens of the nation are handed a great deal of crucial paperwork. These documents can be used for a variety of purposes. PAN cards are also a part of these national documents at the same time. The PAN card is a means of completing financial transactions within the nation.
Crucial Role of PAN Records in Tax Liability
In order to ascertain a person’s tax liability, the government also uses the data obtained from PAN records. But, there are a few crucial PAN card-related matters that must also be attended to; failure to do so may result in a punishment.
Actually, it’s important for individuals to remember that possessing several PAN cards is illegal in this country. If someone in this circumstance possesses many PAN cards or duplicates, he may have significant issues.
Potential Consequences of Multiple PAN Cards
Anyone found to be in possession of multiple PAN cards may face serious consequences. In actuality, duplicate applications frequently result in the issuance of two PAN cards. People ought to stay away from this kind of situation. If discovered, people might have to deal with a lot of challenges. The card may have come from the IT department for certain people, or it may have come from companies that were contracted out to handle the work.
Mandatory PAN Card Cancellation
People will have to cancel one of their PAN cards in such a scenario. Some persons might submit multiple PAN applications in an effort to save money or fool the authority. These are serious infractions that will result in penalties. There are severe regulations governing the possession of several PANs, and the government fines those who possess multiple PANs by Rs 10,000. The Income Tax Act’s section 272B has led to the imposition of this penalty.