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PAN Card Download Guide

PAN Penalties & Compliance – Complete Guide

Complete guide to PAN penalties for not linking with Aadhaar, multiple PANs, filing ITR without PAN, and incorrect details. Stay compliant and avoid financial penalties.

2025 Updated
Penalty Guide
Compliance Rules
Legal Guidelines

Table of Contents

1. Penalty for Not Linking PAN with Aadhaar

PAN-Aadhaar Linking Requirements

Mandatory requirement with serious consequences for non-compliance

Penalties for Non-Compliance:

PAN becoming inoperative
Inability to file ITR
Restriction in banking and investment activities

💡 Tip: Always link PAN with Aadhaar through Income Tax e-Filing Portal to avoid penalties.

2. Penalty for Holding Multiple PANs

Multiple PAN Penalties

Serious legal consequences for holding multiple PAN cards

Penalties & Consequences:

Multiple PANs are illegal
All PANs except one will be cancelled
Penalty of ₹10,000 under Section 272B of Income Tax Act
Transactions using multiple PANs may attract scrutiny and fines

Solution: Surrender all duplicate PANs to the Income Tax Department and retain only one valid PAN.

3. Penalty for Filing ITR Without PAN

ITR Filing Requirements

PAN is mandatory for filing Income Tax Returns

Penalties:

If PAN is not provided while filing ITR, the return will be rejected
Section 234E of Income Tax Act may impose a late filing fee

Exemptions: Individuals below the taxable income limit may not need PAN, but it is advisable to have PAN for banking and financial transactions.

4. Penalty for Incorrect PAN Details

Incorrect PAN Details

Consequences of errors in PAN application or submission

Penalties for Incorrect Details:

Section 272B imposes fines for furnishing incorrect PAN
Incorrect PAN in financial documents may lead to ITR rejections and tax discrepancies

Common Mistakes:

Name mismatch
Wrong Date of Birth
Incorrect Aadhaar linking
Invalid PAN in banking or investment forms

🔧 Solution: Apply for PAN correction / update immediately using NSDL or UTIITSL portals.

5. Compliance Guidelines for PAN Holders

Compliance Guidelines

Essential guidelines to avoid penalties and maintain compliance

Always link PAN with Aadhaar before the official deadline
Use only one PAN per individual
Ensure all financial transactions and ITR filings mention the correct PAN
Correct PAN details using official correction forms
NRIs and foreign citizens must maintain updated PAN records to avoid penalties

6. Official Notices & Circulars

PAN-Aadhaar Linking Notification

Official circulars specifying deadlines for PAN-Aadhaar linking

Multiple PANs penalty rules (Section 272B)

Penalties for holding multiple PAN cards

Filing ITR without PAN penalties (Section 234E)

Consequences of not providing PAN while filing ITR

PAN correction / update guidelines

Official procedures for correcting PAN details

Official Links

Access official portals for PAN services and compliance

NSDL PAN Services

Official NSDL portal for PAN services and compliance

Visit Portal

UTIITSL PAN Services

Official UTIITSL portal for PAN applications and corrections

Visit Portal

Income Tax Department

Official Income Tax Department portal for PAN linking and compliance

Visit Portal

7. Quick Actions

Track Your PAN Status

Check the current status of your PAN application

Track Status

Download e-PAN

Get your digital PAN card instantly

Download e-PAN

Link PAN with Aadhaar

Mandatory linking to keep PAN operative

Link Now

8. Important Notices

Important Guidelines

Key points to remember for PAN compliance

Always ensure accurate and updated PAN details to avoid penalties
Use only official NSDL / UTIITSL portals for PAN application, correction, or linking
Keep track of government notifications regarding deadlines and compliance rules

9. Conclusion

PAN compliance is crucial to avoid financial penalties, legal issues, and transaction delays. Whether it's linking PAN with Aadhaar, avoiding multiple PANs, filing ITR, or correcting PAN details, following the guidelines ensures smooth financial operations.

💡 Stay Compliant: Always stay updated with official NSDL, UTIITSL, and Income Tax notifications to remain compliant and avoid penalties.

10. FAQs – PAN Penalties