Pan Card Duplicate Penalty Fine Surrender Guide

Holding more than one PAN is illegal under Section 139A(7) of the Income‑tax Act. The Assessing Officer can levy a ₹10,000 penalty per default under Section 272B and may pursue further action if you continue using the duplicate. Surrender all extra PANs immediately—online or offline—to avoid fines, higher TDS/TCS issues, and compliance roadblocks. 

1. Why This Matters Now 

India’s tax systems have been modernized under “PAN 2.0” style upgrades—centralized, API‑driven validation, and Aadhaar seeding. That means duplicate or inconsistent PAN records are easier for authorities to detect than ever. If you: 

• Reapplied for PAN after losing the card, 

• Used an intermediary/agent for financial products, 

• Changed name after marriage/divorce, 

• Operate as a sole proprietor and applied separately in your trade name, …you might be flagged. A proactive self‑check and timely surrender of extra PANs is the safest, cheapest move. 

2. What Counts as a “Duplicate” PAN?  

A duplicate (or multiple) PAN situation exists when more than one valid PAN has been allotted to the same person or entity. The extra PANs may differ in: 

• Name spelling (e.g., RAJESH vs RAJESH KUMAR), 

• Date of birth / incorporation, 

• Father's name mismatch, 

• Residential vs. office address, 

• Proprietary business name vs. personal name. 

Common Real‑World Triggers 

Important: You can hold different PANs only for different legal persons (e.g., you as an Individual, and a separate registered Company or LLP). A sole proprietorship is not a separate legal person—use the same PAN you already have. 

3. Legal Framework: Sections 139A, 272B, 139AA & 234H  

Understanding which section applies will help you respond correctly if flagged. 

Section 139A – Permanent Account Number (Who must have PAN & one‑PAN rule) 

• Specifies categories of persons required to obtain PAN. 

• Sub‑section (7): Once allotted, you cannot apply for, obtain, or possess another PAN. 

Section 272B – Penalty for Failure to Comply with Section 139A 

• Assessing Officer (AO) may levy ₹10,000 for failure to comply. 

• Applies to: holding multiple PANs, quoting a false/incorrect PAN, not quoting PAN/Aadhaar in specified transactions, or not ensuring correct quoting where you are responsible (e.g., deductor/collector scenarios). 

• Can apply per default (explained below). 

Section 139AA – Mandatory PAN–Aadhaar Linking 

• Requires linking of PAN with Aadhaar (subject to exempt categories—very senior citizens, NRIs in some cases, residents of certain states during certain periods, etc.). 

Section 234H – Fee for Delayed PAN–Aadhaar Linking 

• Late fee (currently ₹1,000) payable to reactivate an inoperative PAN that was not linked in time. 

• Separate from duplicate PAN penalty. Paying 234H fee does not cure a duplicate‑PAN violation—you must still surrender extras. 

Takeaway: Duplicate PAN (Sec 139A read with 272B) and Aadhaar‑linking non‑compliance (Sec 139AA / 234H) are different issues—fix both. 

4. How the ₹10,000 Penalty Works (Per Default Explained)

The law authorizes an AO to impose a flat ₹10,000 where you violate provisions tied to PAN compliance. Here’s how that plays out: 

Good news: If you voluntarily surrender the extra PAN before/at the time of enquiry and show it was inadvertent (e.g., card reissue confusion), many cases have seen reduced or dropped penalties. Outcomes depend on facts and AO discretion. 

5. Consequences Beyond the Fine (ITR, TDS/TCS, Banking, Investments)  

Even before a penalty order lands, duplicate or inoperative PAN status can ripple through your financial life: 

• Income‑tax Return Trouble: Returns filed under the “wrong” PAN may not map to your AIS/26AS data, causing mismatch notices or defective return flags. 

• TDS/TCS Credit Loss: If deductors upload one PAN and you file under another, tax credit will not auto‑populate—cash flow hit until reconciled. 

• Higher TDS/TCS (Inoperative PAN): Where PAN isn’t linked to Aadhaar and turns inoperative, banks and institutions can deduct TDS/TCS at higher “No‑PAN” rates in certain transactions (cash withdrawal, deposits, investments). 

• Blocked Financial Transactions: Demat, mutual funds, Sovereign Gold Bonds, RBI Bonds, and other regulated investments can be restricted if the PAN on record is inoperative or disputed. 

• Form 15G/15H Invalidity: Low‑TDS declarations may be rejected until PAN status is operative and unique. 

Result: You pay more, wait longer for refunds, and attract avoidable scrutiny. 

6. Do You Really Have Two PANs? 5 Ways to Check  

Use more than one method for certainty. 

1. “Know Your PAN / Verify PAN” on Income‑tax e‑Filing Portal 

Enter Aadhaar + basic details. If multiple records surface, note all PANs. 

2. PAN–Aadhaar Link Status Check 

If portal can’t map your Aadhaar cleanly, a duplicate may be present in backend data. 

3. View Form 26AS / AIS / TIS 

If TDS entries appear under a different PAN than the one you file with, investigate. 

4. Ask Your Bank / Broker 

Request which PAN they’ve mapped. Compare against the one you use for ITR. 

5. Legacy Paperwork Scan 

Old demat/KYC, mutual fund folios, insurance proposals sometimes carry an earlier PAN entry—especially where agents submitted forms years ago. 

7. Online Surrender of Duplicate PAN (Protean/NSDL Portal – Step‑By‑Step) 

Time required: ~10–20 minutes (plus document upload). 

Fee: Approx. ₹110 (India communication address; varies for foreign address). 

What you need: PAN to retain, duplicate PAN(s), scanned ID/address/DOB proof, photograph, signature, and valid email/mobile for OTP. 

Step‑By‑Step Walkthrough 

1. Go to the PAN Services page on Protean (formerly NSDL) PAN portal. 

2. From Application Type, choose “Changes or Correction in existing PAN Data / Reprint of PAN Card (No changes in existing PAN Data)”. 

3. Select Category (Individual / HUF / Company / Firm / Trust, etc.). 

4. Enter required fields (name, DOB/incorporation, email, mobile) → Submit. 

5. Note the Token Number sent to your email (save it!). 

6. Click Continue with PAN Application Form. 

7. Choose how you’ll submit documents: Aadhaar‑based e‑KYC/e‑Sign, Digital Signature Certificate (DSC), or Physical submission. 

8. In the Personal Details section, confirm the PAN you want to retain. 

9. Scroll to the “If you have ever been allotted another PAN” or Additional PAN field → enter all duplicate PAN(s) to be surrendered. 

10. Select document proofs (ID, address, DOB) from dropdowns. 

11. Upload scanned photo, signature, and supporting documents. Use clear JPEG/PDF under size limits. 

12. Review the Preview Page carefully—PAN to retain vs PAN(s) to surrender. 

13. Pay the processing fee (UPI, card, net banking, DD depending on options shown). 

14. Download the Acknowledgement PDF. 

15. If physical submission required: print, sign (across photo where indicated), attach copies, mark envelope “Application for PAN Cancellation – [Ack No.]”, and courier to the Protean PAN Services Unit, Pune. 

Processing Timeline 

• e‑Sign cases: ~7–15 working days to mark duplicate PAN as “deactivated/cancelled.” 

• Physical cases: Add shipping + verification time (total ~2–4 weeks). 

Pro Tip: Track status using your acknowledgement number on the portal. Keep proof until you see the surrendered PAN as “inactive” in the system. 

8. UTIITSL Alternative (Short Version)  

Prefer UTIITSL? The process is similar: 

1. Visit UTIITSL PAN services site. 

2. Select Change / Correction in PAN. 

3. Enter the PAN you want to retain. 

4. Mention duplicate PAN(s) under the relevant declaration section. 

5. Upload KYC docs → pay fee → download acknowledgement. 

6. Submit physical docs if required. Status updates via email/SMS. 

9. Offline Surrender via PAN Centre or Assessing Officer  

Use this if: 

• Online upload isn’t working, 

• Your duplicate PAN is very old / data mismatch, 

• You received a departmental notice, 

• You’re surrendering on behalf of a deceased person or closed entity. 

Route A: PAN Facilitation Centre (Protean/NSDL or UTIITSL) 

1. Download “Request for New PAN Card or/and Changes/Correction in PAN Data” (Form 49A data capture form). 

2. Tick box for Correction; enter the valid PAN to retain. 

3. Fill Additional PAN Information section with number(s) to surrender. 

4. Attach self‑attested copies of ID, address, DOB documents; and copy of duplicate PAN if available. 

5. Submit at centre; collect acknowledgement. 

Route B: Jurisdictional Assessing Officer (AO) 

1. Prepare a cover letter declaring multiple PANs were issued inadvertently. 

2. List both numbers, issue dates (if known), and specify which PAN to keep. 

3. Attach photocopies and self‑attested ID proof. 

4. Request written confirmation of cancellation/deactivation of the extra PAN. 

5. Keep diary number / stamped copy of your letter. 

10. Sample Cover Letter to Surrender Duplicate PAN  

Subject: Request to Cancel Duplicate PAN Allotted in My Name 

To: The Income‑tax Officer / Assessing Officer (Ward ___), [City] 

Respected Sir/Madam, 

I, (DOB: DD/MM/YYYY), was allotted PAN ABCDE1234F on . Due to , I was later issued an additional PAN PQRSX9876L. I understand that under Section 139A(7) an individual may hold only one PAN. I request that PAN PQRSX9876L be cancelled/deactivated and that PAN ABCDE1234F remain my valid PAN for all tax and financial purposes. 

Enclosures: 

• Self‑attested copy of PAN ABCDE1234F (to retain) 

• Copy of PAN PQRSX9876L (to cancel) / allotment letter 

• Proof of identity & address (Aadhaar / Passport / Voter ID) 

• Any supporting correspondence 

Kindly acknowledge receipt and confirm cancellation so I may update banks, demat, and KYC records. I regret the inadvertent duplication and assure full compliance. 

Signature,

XXXX.

11. If You’ve Received an Income‑tax Notice for Duplicate PAN 

Don’t ignore it; timelines matter. 

Step 1: Read the Section Cited 

Notices may reference Sec 139A non‑compliance, Sec 272B (penalty show‑cause), or mismatch in reported transactions. 

Step 2: File a Surrender Immediately 

Initiate surrender online (or with AO) and attach acknowledgement to your reply. 

Step 3: Respond on Portal 

Upload a reply through e‑Proceedings: explain that duplication was inadvertent; include documentary proof (ack copy, ID, timeline). 

Step 4: Request Drop/Reduction of Penalty 

Politely request that no penalty be levied (or be restricted to minimum single default) because you self‑reported and took corrective action. 

Step 5: Track Order & Pay Promptly if Levied 

If an order under Sec 272B is passed, pay via e‑Pay Tax and retain the challan. 

12. Special Situations & Edge Cases 

a) Lost PAN Card vs. Duplicate PAN 

If you lost the card but the number was known, you should request a reprint (duplicate card, not duplicate number). Accidentally applying as “New PAN” creates a violation. When in doubt, do a portal lookup first. 

b) Name Change (Marriage / Divorce / Spelling Correction) 

Always use the Change / Correction form. Supporting proofs: marriage certificate, gazette notification, passport, etc. Do not file for a fresh PAN. 

c) Sole Proprietor Businesses 

A sole proprietorship is not a separate legal entity—use your individual PAN for GST registration, current account KYC, and tax filings. Applying for a fresh PAN in the trade name invites duplication. 

d) Deceased Person’s PAN 

Legal heirs should write to the AO with death certificate requesting the record be flagged inactive; if a new PAN was mistakenly issued in estate matters, have the extra deactivated. 

e) Firm/Company Closed or Converted 

When firms merge, convert to LLP, or strike off, surrender the old entity PAN. Failing to do so can cause TDS credit confusion if vendors still quote the dead PAN. 

f) NRI / Returned NRI 

If you became non‑resident and obtained foreign KYC records, ensure you haven’t reapplied locally. Also confirm PAN–Aadhaar linking status—NRIs are conditionally exempt in some windows, but rules change; check before acting. 

13. Penalty Relief & Representations: Is Leniency Possible?

While the statute prescribes a ₹10,000 penalty, administrative discretion exists: 

• If you voluntarily disclose before detection, many taxpayers report no or reduced penalty. 

• When a duplicate arose from departmental/agent error, attach evidence (acknowledgement numbers, tracking logs). 

• Cite that financial activity was always reported under one PAN (no tax loss) and request penalty waiver/restriction. 

• In rare litigated matters, tribunals have favoured taxpayers where intent was absent and corrective steps were prompt. 

Reality Check: There is no guaranteed automatic waiver in law just because the error was unintentional. Relief depends on your AO and the facts you present. Always respond formally. 

14. Prevention Checklist: Stay Penalty‑Free for Life 

Before applying for anything financial, pause and check: 

• Verify your PAN on the Income‑tax portal. 

• Use correction/reprint—not new application—if data changes. 

• Keep secure digital copies of your PAN letter & e‑PDF. 

• Link PAN with Aadhaar and confirm “Operative” status. 

• Inform banks/brokers immediately after changes so they stop using old records. 

• Maintain a personal KYC log (PAN, Aadhaar, passport, voter ID, updates made, dates). 

Frequently Asked Questions

1. What is the penalty for holding two PAN cards? 

₹10,000 under Section 272B for failure to comply with Section 139A. 

2. Is the penalty automatically levied? 

No. The AO issues a show‑cause or order. Voluntary surrender can help your case. 

3. Is the ₹10,000 charged once or for every extra PAN? 

Law permits levy per default. Most commonly levied once per extra PAN; further misuse may attract additional penalties. 

4. I lost my PAN and applied again—now I have two numbers. What should I do? 

File a correction/reprint request retaining the original number and ask to cancel the later PAN. 

5. How long does it take to cancel a duplicate PAN? 

Online surrender typically 7–15 working days after successful verification; offline 2–4 weeks. 

6. Will my income‑tax return be invalid if filed under the wrong PAN? 

Returns are PAN‑specific; filing under a wrong/duplicate PAN can lead to mismatch notices and denied credits—but you can correct by filing under the valid PAN once resolved. 

7. Does paying the ₹1,000 Aadhaar linking fee (Section 234H) remove the duplicate PAN penalty risk? 

No. Aadhaar linking fixes operativeness, not duplication. You must still surrender the extra PAN. 

8. Can I check if someone misused my PAN? 

Review AIS/26AS, credit bureau KYC flags, and high‑value transaction reports (Statement of Financial Transactions) in your e‑filing account. 

9. Do HUF, Firm, or Company PANs count as duplicates of my personal PAN? 

No. Separate legal persons must have separate PANs. Duplication arises only when two PANs correspond to the same legal person. 

10. What if I ignore the notice? 

AO can levy penalty, initiate recovery, and in extreme data‑misuse cases escalate for further investigation. Don’t ignore. 

 

Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source before taking any choices or actions.