The Directorate of Income Tax has noticed the instances of allotment of one PAN to two persons and in rare cases even to more than two persons have come to the notice of Directorate of Income-tax(Systems).
In this regard the Directorate formulated a policy and the same was issued vide AIS Instruction No. 82 dated June 21, 2013, which stated that “the person who has been allotted PAN earlier in time will be the actual owner of that PAN arid the same will be retained by him and the person who has been inadvertently allotted the same PAN later in time, will have to obtain a new PAN by surrendering his wrongly allotted PAN”.
However, application of the instruction has resulted in some grievances. After considering the grievances raised and with the approval of Competent Authority the above instruction is partially modified.
Firstly, if the First PAN holder is not filing ITR and the Second PAN holder is filing ITR then the first PAN holder will be allotted a new PAN as per the existing procedure and the second PAN holder will continue to retain the original PAN.
Secondly, if the First PAN holder and Second PAN holder both are not filing ITR then Existing procedure will be followed i.e. first allottee will retain the original
PAN and second allottee will be given a new PAN.
Thirdly, if the First PAN holder and Second PAN holder both filed ITR for part years then it is to be resolved after gathering information with regard to the pending demands and refunds in respect to those returns filed, with the approval of ADG(System)-1.
Fourthly, in any other case not covered, then Resolution will be made after gathering information with regard to the pending demands and refunds in ‘respect to the returns filed by the PAN holders, with the approval of ADG S stem -1.
Therefore, it is requested that the field officers and RCCs may be directed to deal with such types of cases relating to allotment of one PAN to two or more taxpayers as per this instruction after proper analysis of PAN details along with an examination of the audit log of PAN under consideration.
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