Over a million permanent account numbers of the estimated 43 million (4.3 crore) issued may soon be deactivated on account of the revelation that individuals have received more than one number.
Both fraudulent and unintentional, these "duplicate" PANs have come to light after the revenue department completed its investigation into the matter. According to officials, between 2 per cent and 3 per cent of the 43 million PAN cards issued so far fall in this category.
Government officials said the department was in the process of sending letters to all taxpayers who were found to be in possession of duplicate PAN cards to ascertain if the multiple cards were in their name.
The department has in its communication to such taxpayers also identified the PAN card they should retain and quote for all future transactions.
Officials said since all cases of duplicate PAN cards had now been clubbed by the department, action would be taken against any assessee found to be deliberately using more than one PAN. The exercise to identify duplicate PAN cards was initiated a year ago.
"We are also informing all taxpayers who have been allotted duplicate PAN cards to contact our call center, Ayakar Sampark Yojana, and provide the PAN they intend to use," an official said.
Officials said this year's Budget provision empowering the department to issue PAN card suo motu would also allow the department to assign cards for all those transactions reported under the Annual Information Return that do not contain PANs.
Nearly 30 per cent of the 17,00,000 transactions reported under the AIR up to December 31, 2005, did not have the relevant PAN.
The income tax department has now introduced an online system for taxpayers to know their PAN.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
