Is It Illegal To Have Two Pan Cards?

In compliance with the Income Tax Act (1961), the Income Tax Department in India provides a unique 10-digit alphanumeric identification known as the Permanent Account Number. It is a significant number for financial transactions as well as avoiding tax. Is having two PAN cards possible? The answer is NO. Having more than one PAN card is totally unlawful and it may lead to various penalties.

This article deals with the legal provisions and penalties, common causes of duplication, and the procedure to surrender one PAN card.

What is a PAN Card?

• According to Section 139A of the Income Tax Act, 1961, PAN card is issued in an individual’s name and is required for any financial transaction in India.
• I always say to clients, “Without a valid PAN, you can’t even open a bank account or do your legal purchase of property is out of the question.”

Who Must Apply for PAN?

If you earn income that is taxable, you must apply. Importantly:

• Legally, you can only have one PAN number.
• Having two different PANs is illegal.

Is It Illegal to Have Two PAN Cards? The Straight Answer

Yes, absolutely. I once had a client who unknowingly got two PANs after marriage (due to surname change). Luckily, we surrendered the duplicate before giving penalties.

The Law Speaks:

Section 139A (7) says: “A permanent account number cannot be applied for, obtained, or held by someone who has already been assigned one under this section.”

How Do People End Up with Two PAN Cards? (Real-life Situations)

Many people I’ve worked with were unaware and they even had two valid PANs.

Most common cases I’ve seen:

• Name change after marriage or divorce
• Change of address
• Applying again after losing the old PAN card
• Using agents or consultants who file on your behalf twice

Warning: Whether it’s intentional or accidental, the law treats all duplication seriously.

What Is the Penalty for Holding Multiple PAN Cards?

Section 272B – The Penalty Clause

You could be fined ₹10,000 per violation.

Example from my practice: One businessman client used two PANs to separate his personal and business income. He faced penalties of ₹20,000 for dual usage in separate returns.

Case Laws: How Courts Have Treated Duplicate PAN Cases

1. Vinod Kumar vs. CIT (2007, ITAT Delhi)

Multiple PANs for different businesses  is Illegal.

2. Shiv Dutt Sharma vs. Union of India (2012, P&H High Court)

Two PANs for salary + business = Penalty confirmed.

3. CIT vs. Pankaj Sharma (2015, ITAT Jaipur)

Accidental duplication with no malafide intent = No penalty, but strict action issued.

What Happens If You Have Two PAN Cards? (From a Tax Consultant’s Desk)

Consequences I warn every client about:

• ₹10,000 fine under Section 272B
• Immediate scrutiny from IT Department
• Possible benami transaction investigation
• Trouble filing ITR, Aadhaar linking, TDS claims
• Bank and credit card delays

How I Help Clients Surrender Their Duplicate PAN Card (Step by Step)

Here’s the process I walk my clients through:

• Step 1: Visit NSDL or UTIITSL.
• Step 2: In the “Changes or Correction in PAN data,” choose the Form 49A.”
• Step 3: Clearly mention which PAN you want to keep, and which PAN you are surrendering.
• Step 4: Fill out the form at the PAN Center that is closest to you or online.
• Step 5: Keep the acknowledgement receipt safely.

Pro Tip (from experience): Always check your records thoroughly before surrendering, as it cannot be changed.

Is Having Multiple PAN Cards the Same as Requesting a Duplicate Card?

No. I always tell clients:

• It is totally not legal to have more than one PAN
• However, you are allowed to use a duplicate card with the same number if you misplace the original. 

How the Government Is Stopping PAN Duplication?

1. PAN-Aadhaar Linking

This has helped several of my clients avoid the risk of duplication.

2. Centralized IT Database

Now, the system matches your name, date of birth, and biometric data to avoid unintentional duplicates.

Final Words: What I Recommend to All Clients

Take immediate action if you even suspect that you possess two PANs. I’ve helped dozens of clients avoid heavy penalties by simply surrendering their duplicate card early. Don’t wait for the Income Tax Department to find you first. “One person. One PAN. That’s the safest and only legal way.”

One can talk to lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.

FAQs

1. I hold two PAN cards for different businesses?

No. As per the Income Tax Act, you are allowed only one PAN for all purposes, whether personal or business.

2. What if my old PAN card was lost and I applied for a new one?

You ought to have used the same PAN number while applying for a second card. Having two PAN numbers is illegal.

3. How can I check multiple PANs?

You can verify the details of your PAN by using the “Know Your PAN” feature through the Income Tax Department’s e-filing portal.