The next project by the government of India is known as PAN 2.0, which seeks to bring in some minor changes in the existing PAN number area to make it more reliable. This new version will contain as dynamic QR code, and compulsory Aadhaar linking which aims at preventing fraud and enhancing financial transactions.
But what if you have two PAN cards by mistake? But do not worry we have you covered. Let’s now explore what is PAN 2.0, its importance and multiple PANs management.
What’s New in PAN 2.0?
However, in this regard to functions and security, PAN 2.0 is the game changer.
- The Dynamic QR Codes also facilitate rapid check and guarantee no two PANs’ are similar.
- PAN linked details are legal because Aadhaar linking is compulsory.
- Some of the applications also provided the best technology to avoid overlapping of records detection.
- Real–time validation involves validation of data in real time which increases the speed of financial operations.
All these features are designed to reduce the chances of fraud, improve the level of transparency and ensure legal compliance.
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What Happens if You Have a Duplicate PAN?
Having more than one PAN card, whether by accident or intention, is illegal under the Income Tax Act, 1961. If you possess a duplicate PAN, here’s what could happen:
Penalty of Up to ₹10,000:
As for the result to such issue, there is section 272B of the Income Tax Act and if you do not adhere to it, you are punishable by a very huge fine.
Legal Complications:
It could cause problems with your financial transactions and might lead to investigations.
How to Detect if PAN is Duplicate
- In case of lost PAN or want to verify your PAN status, login to the e-filing portal of Income Tax Department.
- You can directly go to your Jurisdictional Assessing Officer to verify whether you possess a duplicate PAN or not.
How to Surrender a Duplicate PAN
- Submit the required forms to PAN service providers like NSDL or UTIITSL
- Notify your Jurisdictional Assessing Officer for deactivation.
- In case you have a valid PAN, link Aadhaar with it and make sure it is updated in all the fields such as bank accounts and investments.
Many Personalities like Avnish Arora, Executive Director of Direct Tax from Forvis Mazars, suggest that voluntarily surrendering a duplicate PAN show good intent and may help avoid penalties.
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Why It’s Important to Act Now
The government is dealing with duplicate PANs with innovative technology such as AI-based analytics and QR code verification. If not addressed, a duplicate PAN might result in:
- Possible misuse of your identity in fraudulent activity.
- Financial issues, such as blocked transactions or delayed returns.
- Legal issues that could have been simply avoided.
Conclusion
PAN 2.0 represents a huge step towards creating an effortless, safe, and fraud-free financial ecosystem. Regardless of whether you upgrade to PAN 2.0, you must immediately verify for and resolve any duplicate PANs. Remember that the procedure is simple, and taking action now may protect you from unnecessary complications later.
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