A PAN card is one of the most important financial documents in India, and even a small mistake related to it can turn costly. According to the latest updates, taxpayers may have to pay a penalty of ₹10,000 if they violate certain PAN card rules. Many people unknowingly make these errors, leading to fines and problems in banking, KYC, tax filing and refunds. Here’s a complete Google Discover–friendly breakdown of what you must avoid.
The Small Mistake That Leads to a ₹10,000 Penalty
Holding more than one PAN card or using an inoperative/wrong PAN is a punishable offence. Under Section 272B of the Income Tax Act, the penalty for such mistakes is ₹10,000.
People often apply for a new PAN when their name or address changes — but this is wrong. You must update your existing PAN, not apply for another one.
Duplicate PAN Cards Can Put You in Trouble
If your PAN details were entered wrongly earlier — spelling mistakes, wrong date of birth, or marital name changes — you should file a correction request, not get a new card. Having two active PANs in your name can cause:
- A ₹10,000 penalty
- PAN becoming inoperative
- High TDS deduction
- Delay in refunds
- Issues during KYC for banks, mutual funds and insurance
Using an Inoperative PAN Can Also Trigger a Fine
PAN becomes inoperative mainly when it is not linked with Aadhaar. If you continue to use an inoperative PAN for banking or investment transactions, a penalty of ₹10,000 per transaction may apply. It also blocks:
- Tax filing
- Bank account verification
- Property registration
- Mutual fund investments
- Demat account operations
New PAN Rules That Everyone Should Follow
To avoid penalties and financial complications, keep these updated rules in mind:
- PAN must be linked with Aadhaar before the government deadline
- Always use only one PAN for all financial activities
- Update instead of reapplying when your personal details change
- Check PAN status regularly through the Income Tax portal
- Ensure correct PAN is quoted in bank forms, KYC and government filings
How to Check if You Have Duplicate or Inactive PAN
Visit the official Income Tax portal and use the ‘Verify PAN’ service to check whether your PAN is valid and active. If more than one PAN is detected, surrender the duplicate immediately through an online form and avoid penalties.
Conclusion: A single mistake related to your PAN card — whether duplicate usage or using an inactive PAN — can lead to a ₹10,000 penalty. By keeping your PAN updated, linking it with Aadhaar and ensuring you use only one PAN, you can avoid fines and keep your financial records clean.
Disclaimer: Information is based on current rules and tax guidelines. Always refer to the official Income Tax portal for updated instructions.
