Income Tax News: In the realm of Income Tax, PAN (Permanent Account Number) card holds paramount significance for individuals in India. To ensure a seamless experience and stay clear of potential complications, PAN card holders must be vigilant and avoid certain common mistakes that could lead to legal consequences.
Single PAN Card Rule
Adhering to the legal mandate, PAN card holders must refrain from possessing duplicate or multiple PAN cards. Violating this rule can expose individuals to serious problems, making it crucial to steer clear of such errors.
The Pitfalls of Duplicate PAN Cards
Accidental issuance of duplicate PAN cards, often arising from double applications, poses a significant threat. PAN card holders should exercise caution to prevent falling into this predicament, as it can result in considerable challenges.
Canceling Duplicate PAN Cards
In the event of possessing more than one PAN card, immediate action is paramount. PAN card holders should initiate the cancellation of one of the cards to rectify the situation promptly and ensure compliance with regulatory requirements.
Intentional Misuse and Penalties
Some individuals may apply for multiple PAN cards with the intention of deceiving the government or for financial gain. Such actions are considered severe violations and attract strict penalties. Section 272B of the Income Tax Act imposes a fine of Rs 10,000 on those holding a duplicate PAN card.
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