How to Verify if a User Owns Two PAN Cards in 2023

The need to verify if a user owns two PAN (Permanent Account Number) cards persists, especially in the digital age where financial transactions are the norm. PAN cards are a crucial aspect of financial and tax compliance in India, and the process of verifying their ownership has evolved over the years. Here’s how to verify if a user owns two PAN cards in 2023 and the latest developments that simplify the task.

Historical Context and Current Regulations

Over the years, the process of verifying PAN cards has witnessed several changes. In the past, it was challenging to determine if a user owned multiple PAN cards, as biometric verification was not a part of the PAN creation process. PAN cards, which have been in use for over 60 years, were created without such stringent measures. This led to the possibility of creating multiple PAN cards with different addresses and names.

Current Framework: Aadhar and PAN Linkage

Recently, the Indian government has enhanced the security and verification process by linking PAN cards with Aadhar (Unique Identification Authority of India) numbers. This linkage was introduced to combat tax evasion and improve financial transparency. Here are the key points to understand the current framework:

Mandatory Aadhar-PAN Linkage: As of 2018, every PAN card became mandatory to be linked with an Aadhar card. This linkage ensures that one Aadhar number is only linked with one PAN card, thereby preventing the creation of multiple PAN cards under a single identity. Automatic Deactivation of Unlinked PAN Cards: Any PAN card that is not linked with an Aadhar will be automatically deactivated. This measure ensures that all active PAN cards are verified and secure. ABS (Authentication of Billers Service): The ABS system allows authorized agencies to verify the authenticity of a PAN card. This system helps to check the validity and linkages of a PAN card with an Aadhar number, ensuring financial transactions are secured.

How to Verify a User's PAN Cards

Here are the steps to verify if a user owns two PAN cards in 2023:

Check Aadhar-PAN Linkage: Use the official Income Tax Department's portal to check if the user's PAN card is linked with their Aadhar number. If the Aadhar is linked with another PAN card, the system will display the linked PAN number with the first and last letters masked. Document Verification: Look for inconsistencies in the documents provided by the user. Verify different PAN numbers on salary slips, bank statements, and rent agreements. Note that this method is not foolproof, as people can create PAN cards with different addresses and names. Manual CIBIL Verification: Request the user to submit non-PAN related identity proofs like their Voter ID or Driving License. Pull a manual CIBIL report to check for any inconsistencies. If the user has a second PAN card, it will be reflected in the CIBIL report.

Conclusion

In the era of digital finance, the verification of multiple PAN cards has become more streamlined. With the mandatory Aadhar-PAN linkage and the automatic deactivation of unlinked PAN cards, the task has become simpler. However, it is still essential to maintain vigilance and perform due diligence. The steps outlined above can help in verifying a user's PAN cards and ensuring compliance with financial regulations.

Frequently Asked Questions

Q1: Why is Aadhar-PAN linkage important?

Aadhar-PAN linkage ensures that a single identity is linked with only one PAN card, reducing the chances of financial fraud and tax evasion.

Q2: Can I manually deactivate a PAN card if it is not linked with Aadhar?

No, the deactivation process is automated and must be done by the government via the Income Tax Department's portal.

Q3: What happens if a user tries to link a second PAN card with their Aadhar?

If a user attempts to link a second PAN card with their Aadhar, the system will flag it as an error, and the additional PAN card will not be linked. Prevention of multiple PAN cards is enforced to maintain financial integrity.