Why holding duplicate PAN cards can now lead to criminal charges and jail time.

A recent court judgment has made it clear that holding more than one PAN card is no longer just a minor issue with a ₹10,000 fine. In a high-profile case, two individuals were sentenced to seven years in jail for possessing duplicate PANs, one of which was forged. The ruling shows that when a second PAN is linked to fraud or forgery, it becomes a criminal offense under the IPC. Taxpayers with duplicate PANs must act quickly and surrender the extra card to avoid severe legal consequences.

The Breakdown

This conviction was not only under the Income Tax Act but also under the Indian Penal Code (IPC).

• The Offense: The individuals were found with two PAN cards, one of which had a fake date of birth.
• The Escalation: The court ruled that using a forged PAN amounts to cheating and conspiracy, specifically Forgery of a Valuable Security (IPC Section 467).
• The Punishment: Seven years in jail shows that when a duplicate PAN is linked to fraud or forged documents, it becomes a criminal offense, not just a tax penalty.

What This Means for You

This judgment is a reminder: every person is legally allowed only one PAN card.

• Accidental Holders: If you have two PANs by mistake (for example, you reapplied after a delay), the penalty is still the standard fine of ₹10,000.
• Fraudulent Holders: If you got a second PAN intentionally for tax evasion, splitting income, or identity fraud, you now face the risk of jail under IPC provisions.

Immediate Action Required

If you have more than one PAN card, you must surrender the duplicate PAN immediately to the Income Tax Department. This is the only way to reduce your legal risk.

The Bottom Line

The days of treating duplicate PAN cards as a minor issue are over. The law is clear: one person, one PAN. If you have more than one, act fast and surrender the extra card. What may look like a small mistake can now turn into a serious criminal case.

In short: Keep only one PAN, surrender duplicates, and stay safe from heavy fines or jail.

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