PAN Cards: 10 Common Misconceptions & Their Solutions

There are various misconceptions about PAN cards.

People frequently ask questions such as whether they can hold multiple PAN Cards or not? Or if they have to change their PAN due to change in address? Or whether a minor can hold a PAN card? And so on.

This article addresses 10 such most common questions about pan cards.

10 Common Misconceptions About PAN Cards

1. Can I Obtain PAN Even If I am Not Earning?

Yes, you can obtain PAN even if you are not earning income or even if you are not liable to pay tax. Obtaining PAN is mandatory for a person who is earning and is liable to pay tax. However, this does not restrict a person who is not earning income, from obtaining a PAN.

2. Is There Any Age Restriction for Obtaining PAN?

No, there is no age restriction for obtaining PAN. A person of any age can obtain PAN. Even a Minor can have PAN in his/her name.

3. Do I Have to File IT Return Every Year Once I Obtain PAN?

No, the criteria for filing IT Returns is different and merely having a PAN does not make a person liable to file IT Return.

4. What Does It Mean by Correction/Changes in PAN Card Details?

Suppose a person has been allotted a PAN card, but such PAN card contains incorrect information about that person or there is a change in such information due to a recent development, such person may apply for correction or changes in the information on the PAN card. The applicant can request to update the applicant’s name, father’s name, change in birthdate, alteration of the address, etc. However, this does not result in a change of PAN, only the details on PAN card are updated, and a new PAN card is issued.

5. How Many PAN Can I Have?

One person can obtain only one PAN. It is considered illegal to hold more than one PAN in the name of the same person. This can happen if you have applied multiple times with different details.

6. How Many PAN Cards Can I Have?

A person can hold multiple PAN cards if all PAN cards have the same PAN. Each time a person applies for a change in details on PAN; such person is issued a new PAN Card with updated details. Therefore, it can happen that a person has multiple PAN cards. However, the most recent PAN card must be used for any purpose.

7. What If I Have Multiple PAN?

Having multiple PAN is not an offence by itself since it can happen by mistake as well. You can surrender one of the PAN to Income Tax Department. It does not attract any penalty. However, if a person owns multiple PAN and uses it to commit fraud, such person can be punished with a penalty up to Rs. 10,000 and also face other legal consequences that may arise due to fraud.

8. If I Move from One City to Another, Do I Need to Apply for a New PAN?

Permanent Account Number (PAN) is your permanent number. Therefore, it does not change. However, due to change in address your Assessing Officer may change. Such changes must, therefore, be intimated to IT Department so that the PAN database can be updated. You can intimate the change in address or any other details by submitting Form for Correction/Changes in PAN details. This form can be submitted online through NSDL Portal or the UTIITSL Portal.

NSDL Portal — Click here to visit.

UTIITSL Portal — Click here to visit.

9. Who Can Apply on Behalf of Minor, Lunatic, Idiot, Mentally Retarded, Deceased and Wards of Court?

As per section 160 of Income Tax Act, 1961 the above person may be represented through a Representative Assessee. In PAN applications, necessary provisions in this regards have already been made. In such cases, in the application for PAN, details of the minor, lunatic, idiot, mentally retarded, deceased, wards of the court, etc. should be provided and the details of representative assessee have to be separately provided in item 14 of the PAN application.

10. Who Can Apply for PAN Card in the Case of HUF, Partnership Firm, Company and such other Entities?

In the case of HUF, the Karta of HUF is entitled to apply for PAN card. In the case of Partnership Firm, any partner can apply for PAN card on behalf of the Partnership firm. In the case of Company, any Director can apply for PAN card on behalf of the company. Similarly, in the case of all artificial persons, the principal officer of such entity can apply or PAN card.

In all such PAN Applications, no photo should be affixed. Further, where applicant’s specimen signatures are required, such authorised person must place his/her signatures. Organization’s seal is not required.