Having a Permanent Account Number (PAN) is essential for financial transactions in India. It acts as a unique identification number for taxpayers and is mandatory for banking, investments, loans, and income tax filing.
However, many people unknowingly end up with two PAN cards due to mistakes during application, name changes, or duplicate submissions. If you are in this situation, don’t panic — but it is important to take action quickly.
In this article, we’ll explain what happens if you have two PAN cards, the penalties involved, and how to surrender a duplicate PAN step-by-step.
Can a Person Have Two PAN Cards?
No. As per rules of the Income Tax Department, one individual is allowed to hold only one PAN number.
If someone possesses more than one PAN in their name, it is considered a violation under the Income Tax Act.
Why Do People End Up With Two PAN Cards?
There are several common reasons:
Applying for PAN multiple times by mistake
Change in name after marriage and applying again instead of correction
Errors in date of birth or spelling leading to re-application
Applying through different agents or portals without checking status
Most cases are genuine mistakes, but they still need correction.
What Happens If You Have Two PAN Cards?
Holding multiple PAN cards can create serious financial and legal complications.
- Penalty Under Income Tax Law
Under Section 272B of the Income Tax Act, authorities may impose a penalty of ₹10,000 for holding more than one PAN. - PAN Deactivation Risk
The department may deactivate one PAN. In some cases, both numbers may be flagged for verification. - Income Tax Filing Problems
You may face:
TDS credit mismatch
Issues in Form 26AS or AIS
Income tax notices
Difficulty in filing returns - Banking and Loan Issues
Since PAN is mandatory for KYC:
Bank accounts may get restricted
Loan approvals may get delayed or rejected
Investment accounts may face compliance issues
Which PAN Should You Keep?
You should retain the PAN that:
Is linked with Aadhaar
Has been used for Income Tax Return (ITR) filing
Is registered with your bank and financial accounts
The other PAN must be surrendered.
How to Surrender Duplicate PAN Online (Step-by-Step)
The easiest way to surrender a PAN is through the Income Tax portal.
Step 1: Visit the Portal
Go to the Income Tax e-filing website.
Step 2: Login
Login using the PAN you want to keep active.
Step 3: Navigate to Services
Go to: Services → PAN → Surrender Duplicate PAN
Step 4: Enter Details
Provide:
PAN number to surrender
Reason for surrender
Step 5: Submit Request
Submit the form and download the acknowledgement for future reference.
How to Surrender Duplicate PAN Offline
You can also surrender PAN physically through authorized centers like:
NSDL
UTIITSL
Offline Process:
Fill PAN correction form
Mention both PAN numbers clearly
Tick option for “Surrender duplicate PAN”
Attach copies of both PAN cards
Submit at the center and collect acknowledgement
Important Things to Do After Surrender
After surrendering duplicate PAN:
Update correct PAN in bank accounts
Inform employer and financial institutions
Ensure Aadhaar is linked with active PAN
Use only one PAN for all transactions
This prevents future compliance issues.
How Long Does PAN Surrender Take?
Usually, the process takes 15 to 30 days depending on verification by authorities.
Final Thoughts
Having two PAN cards is a common mistake, but ignoring it can lead to penalties and financial complications. The good news is that surrendering a duplicate PAN is a simple process if done promptly.
Always ensure you use only one PAN for all financial and tax purposes to avoid legal trouble.
Frequently Asked Questions (FAQs) - Is it illegal to have two PAN cards?
Yes. A person is legally allowed to hold only one PAN. Having multiple PAN cards can attract penalties. - What is the penalty for duplicate PAN?
The penalty can be up to ₹10,000 under Section 272B of the Income Tax Act. - Can I keep both PAN cards if details are different?
No. Even if details vary slightly, only one PAN should remain active. - How do I know which PAN is active?
Check which PAN is linked with Aadhaar, used for ITR filing, and registered with banks. - Do I need to surrender PAN if I never used it?
Yes. Even unused duplicate PAN should be surrendered to avoid future issues. - Can banks freeze accounts due to two PAN numbers?
Yes, banks may restrict accounts if PAN discrepancies are found during KYC verification. - Is surrendering PAN free?
Online surrender through the Income Tax portal is generally free. Offline services may involve minor charges.
