Template Description

This template provides a formal declaration for individuals who have mistakenly obtained two Permanent Account Number (PAN) cards in India. It is a 1-page Ms Word document designed to be submitted to the appropriate authorities for cancelling the duplicate PAN card. This template is crucial for individuals seeking to rectify their PAN card status and comply with Indian tax regulations.

Understanding the Affidavit - PAN Card Cancellation

Legal Requirement for the Affidavit:

The requirement for this affidavit stems from the following legal context:

• Income Tax Act, 1961: Section 139A of the Act mandates that every person who has not been allotted a PAN shall apply to the Assessing Officer for the allotment of a PAN.
• Rule 114 of Income Tax Rules, 1962: This rule specifies that an individual cannot have more than one PAN.
• CBDT Circular: The Central Board of Direct Taxes (CBDT) has issued circulars stating that possession of more than one PAN is against the law.
• Prevention of Money Laundering Act, 2002: Multiple PANs can be seen as a means to evade taxes or engage in money laundering, which is punishable under this Act.
• Penalty Provisions: As per Section 272B of the Income Tax Act, possessing or using more than one PAN can attract a penalty of ₹10,000.

Purpose:

The declaration serves as an official statement to:

• Acknowledge the possession of two PAN cards
• Request cancellation of the duplicate PAN card
• Accept responsibility for any future tax liabilities associated with the duplicate PAN

Legal Considerations:

• This declaration is a legal document and should be used with caution
• Consult with a legal professional or tax advisor before submission
• Be aware that providing false information can lead to legal consequences

Conclusion

This PAN Card Cancellation Declaration template offers a structured and formal way for individuals to address the issue of duplicate PAN cards. By using this template, individuals can clearly communicate their situation to the authorities, request the necessary actions, and demonstrate their willingness to comply with tax regulations. It's an essential tool for maintaining accurate financial records and ensuring compliance with Indian tax laws.