Introduction
The Permanent Account Number (PAN) card is an essential document for financial transactions in India. It is mandatory for income tax filing, opening bank accounts, and making high-value transactions. However, many people make common PAN card mistakes while applying or using their PAN cards, leading to legal and financial complications.
In this article, we will discuss five common PAN card mistakes that you must avoid. By staying informed, you can ensure hassle-free financial dealings and avoid penalties.
1. Providing Incorrect Personal Details in Your PAN Card
One of the most common PAN card errors people make is entering incorrect personal details while applying. Errors in name, date of birth, or father’s name can create issues during tax filing and banking transactions.
How Incorrect PAN Card Details Affect You
- Mismatched details can cause rejection of loan applications.
- Errors can lead to complications when linking PAN with Aadhaar.
- Wrong details can delay tax refunds.
How to Correct Wrong PAN Card Information
If you have incorrect details on your PAN card, you can correct them by following our detailed PAN correction guide:
- Visiting the NSDL website or the UTIITSL website.
- Selecting the ‘Correction in PAN’ option.
- Providing supporting documents (Aadhaar, passport, etc.) for verification.
- Paying the applicable correction fee and submitting the application.
2. Having Multiple PAN Cards – A Serious Mistake
Possessing multiple PAN cards is illegal and can lead to penalties. Many individuals apply for a second PAN card unknowingly, usually due to misplaced cards or incorrect details in their first application.
Why Holding More than One PAN Card is a Problem
- Holding more than one PAN is a punishable offense under Section 139A of the Income Tax Act.
- The government can impose a penalty of ₹10,000 for having multiple PANs.
- It can create discrepancies in tax records.
How to Surrender an Extra PAN Card
If you have multiple PAN cards, you should immediately surrender the extra one by:
- Visiting the Income Tax Department website.
- Filing Form 49A for cancellation.
- Submitting the form online or at the nearest PAN service center.
3. Not Linking PAN with Aadhaar – A Costly Mistake
The Indian government has made Aadhaar-PAN linking mandatory to streamline tax compliance. Failing to do so can result in your PAN becoming inoperative.
Consequences of Not Linking PAN with Aadhaar
- Inability to file income tax returns.
- PAN card becoming invalid for financial transactions.
- Risk of paying a late penalty (₹1,000 if linked after the due date).
How to Link PAN with Aadhaar Easily
- Visit the official Income Tax e-Filing portal.
- Click on the ‘Link Aadhaar’ section.
- Enter your PAN and Aadhaar number.
- Validate via OTP.
- Your PAN will be linked successfully.
4. Failing to Update PAN Card Details After Changes
Many people forget to update their PAN card details after legal or personal changes, such as name change after marriage, change of address, or updating contact details.
Why Keeping PAN Details Updated is Important
- Ensures seamless financial transactions.
- Helps in avoiding rejection of KYC verification in banks.
- Prevents identity verification issues in taxation and investment processes.
How to Update PAN Card Information Online
To update PAN details, follow these steps:
- Visit the NSDL PAN correction portal.
- Submit the correction form and required documents.
- Pay the nominal processing fee.
- Receive an updated PAN card at your registered address.
5. Using PAN Card for Unauthorized Transactions – A Risky Mistake
Your PAN is a sensitive financial document, and using it for unauthorized activities or sharing it carelessly can lead to identity theft and tax fraud.
Common PAN Card Frauds You Must Be Aware Of
- Fraudsters may use your PAN card details for illegal transactions, linking them to your tax records.
- Your PAN card number might be misused for fake bank accounts or shell companies.
- Scammers may use your PAN details to apply for loans in your name.
How to Protect Your PAN from Misuse
- Do not share your PAN card number openly.
- Check your Form 26AS regularly for unauthorized transactions.
- Avoid submitting PAN photocopies unless absolutely necessary.
- Use masked PAN copies (showing only the last four digits) for verification purposes.
Conclusion – Avoid These PAN Card Mistakes
A PAN card is a crucial financial document, and even minor PAN mistakes can lead to serious financial and legal issues. By avoiding these common errors—such as entering incorrect details, holding multiple PANs, not linking PAN with Aadhaar, failing to update information, and sharing PAN carelessly—you can ensure smooth financial operations.
Key Takeaways:
- Always double-check your PAN card details before applying.
- If you have multiple PAN cards, surrender the extra one immediately.
- Link your PAN with Aadhaar to avoid penalties.
- Update PAN card information whenever you change your name, address, or contact details.
- Keep your PAN secure to prevent fraud.
If you found this guide helpful, share it with others to help them avoid common PAN card mistakes!
FAQs – Common PAN Card Mistakes
1. How can I check if my PAN and Aadhaar are linked?
You can check the PAN-Aadhaar linking status on the Income Tax e-Filing portal by entering your PAN and Aadhaar number.
2. What happens if I don’t update my PAN details?
Not updating PAN card details can lead to KYC failures, banking issues, and rejection of tax-related documents.
3. Is there a deadline for linking PAN with Aadhaar?
Yes, the government announces deadlines periodically. Ensure you check the latest updates on the Income Tax Department website.
4. Can I apply for a PAN card correction online?
Yes, you can apply for PAN card corrections online through NSDL or UTIITSL portals by providing valid supporting documents.
5. What should I do if my PAN card is misused?
If you suspect misuse of your PAN card number, file a complaint with the Income Tax Department and monitor your Form 26AS for any suspicious activity.