The Government of India, through the Income Tax Department, has introduced strict penalties for individuals and entities found holding duplicate PAN (Permanent Account Number) cards. This measure is part of a larger initiative to eliminate fraud, improve tax compliance, and ensure the integrity of the country’s financial ecosystem. Holding more than one PAN is considered a violation under Section 139A of the Income Tax Act, and the authorities are now actively identifying such cases through advanced data-matching systems.

Under the revised policy, any person found in possession of more than one PAN will face a penalty of ₹10,000 for each additional PAN under Section 272B of the Income Tax Act. Moreover, the department will initiate steps to deactivate the duplicate PANs, retaining only the valid and active ones. In addition to financial penalties, the offender’s financial transactions may be flagged, affecting their ability to file returns, invest in securities, or even operate bank accounts, where PAN is a required identifier.

Taxpayers are urged to verify their PAN status and immediately surrender any duplicate cards by submitting a correction or cancellation request through the official e-filing portal or at designated PAN service centers. The government has also advised that individuals ensure their PAN is linked with Aadhaar, as this helps prevent duplication and strengthens the authenticity of tax records. Failure to comply with the new directive may result in enforcement action and restricted access to financial services.