New PAN 2.0 System: If you find that you have a duplicate PAN, don’t worry about it, and turn it in immediately to avoid breaking the law. The government’s explicit plans to use technology to apprehend criminals and eliminate duplicate PANs from the system are the reason for this. With the launch of the PAN 2.0 project, the government can now monitor duplicate PANs. With the launch of the PAN 2.0 project, the government can now monitor duplicate PANs.
The government has the technology needed to search for duplicate PANs, because an individual is not permitted to possess more than one PAN card. The ministry of finance stated in a press release dated November 26, 2024, that the PAN 2.0 would reduce the number of cases where a single individual holds multiple PANs due to its improved systems logic for identifying possible duplicate requests for PAN and its centralized and enhanced mechanism for resolving the duplicates. PAN 2.0 has secure features, such as a dynamic QR code that will automatically identify duplicate PAN issuances, according to expert reports.
The PAN 2.0 system typically refers to the updated Permanent Account Number (PAN) system in India, which is used for tracking financial transactions and preventing tax evasion. PAN is a unique identifier issued by the Income Tax Department of India to individuals, businesses, and other entities for the purpose of financial identification.
What might occur if you refuse to give up your duplicate PAN?
According to Jhunjhunwala, it’s imperative to take quick action to resolve a duplicate PAN in order to prevent fines, legal issues, and financial transaction disruptions.
- The Income Tax Department has the authority to fine anyone who has a duplicate PAN card and the fine will be up to Rs 10,000.
- The problem could be fixed by submitting the required paperwork to PAN Service providers like NSDL or UTIITSL in order to turn in the duplicate PAN.
- Along with giving up duplicate PANs, it’s crucial to make sure the legitimate PAN is connected to Aadhaar and updated on all financial documents, including bank accounts, investments, and tax returns, according to Junjhunwala.
- Duplicate PANs, whether obtained intentionally or accidentally, are forbidden by the Income Tax Act. Since there could be a fine of up to Rs 10,000, kindly turn in the extra PAN right away.
- Previously, the tax department required that Aadhar data be linked to individual taxpayer IDs.
- These features combined with eKYC may help avoid duplicates and their detection.
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How to resolve the duplicate PAN issue?
Many people are not aware that they have a duplicate PAN in their name, according to Bimal Jain, a chartered accountant and the founder of A2Z Taxcorp LLP. These phony documents and dishonest businesses were the cause of numerous cases of GST fraud, input tax credit fraud, etc.
in the past. Numerous of these dishonest businesses have been exposed using duplicate PANs, in which the original PAN holder was unaware that his name and personal information was being misused.
- Therefore, you are advised to request the tax inspector concerned to invalidate any duplicate PAN that may have been issued in your name as soon as possible.
- If a taxpayer voluntarily came forward to have their duplicate PAN deactivated, Jain added, there would be no repercussions.
- No penalty or fine will be imposed if the taxpayer comes forward voluntarily and submits the duplicate PAN or requests for it to be invalidated.
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PAN 2.0 system has introduced several changes
The PAN 2.0 system has introduced several changes to improve the system’s efficiency, security, and accessibility, including:
- Digital PAN Cards
PAN 2.0 allows for the issuance of e-PAN cards, which are digitally signed, thus reducing the need for physical paperwork.
e-PANs are available instantly for individuals applying online. - Linking with Aadhaar
PAN 2.0 aims to make the PAN system more robust by linking it with Aadhaar (a 12-digit unique identification number issued by the Indian government).
This linkage helps to streamline the process, making it easier for individuals to file their taxes and claim refunds, and ensures better accuracy in tracking financial transactions. - Enhanced Security Features
PAN 2.0 includes more secure authentication protocols to prevent misuse or fraud.
The system has implemented stricter guidelines for verifying the identity of applicants. - Simplified Application Process
The process for obtaining or updating a PAN has been simplified, with options to apply online, as well as track applications.
The system allows for faster processing of applications.
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- Integration with Financial Systems
PAN 2.0 is being integrated with various financial institutions, e-commerce platforms, and the Goods and Services Tax (GST) system to create a unified approach to financial transactions and tax reporting. - Multiple Uses
PAN 2.0 can now be used for more than just tax purposes. It serves as an important identification for financial activities such as:
Opening a bank account
Filing tax returns
Trading stocks
Applying for loans - Easier Updates and Correction
The updated PAN 2.0 system enables individuals and entities to easily update personal details like names, addresses, or date of birth, making it more user-friendly. - QR Code for Verification
New PAN cards may come with a QR code, allowing users to verify their PAN quickly using scanning devices or apps.
Overall, PAN 2.0 makes the system more digital, user-friendly, and secure, aligning with the government’s initiative towards digitalization and improving tax compliance.
