Quoting wrong PAN, Holding more than one PAN can attract a Rs. 10,000 fine
The income tax department may impose a penalty under section 272B of the Income Tax 1961 if anyone is found giving an incorrect PAN number. This provision is applicable when you are filing your income tax return (ITR) or in other cases where it is mandatory to quote PAN card number for carrying out specific financial transactions.
As of now, there are 20 cases where quoting PAN is mandatory, as listed by the income tax department. Some of these cases include the opening of bank account, buying mutual funds, shares, debentures, bonds, etc worth more than 50,000. If you do not remember PAN, you may also quote Aadhaar card number as the two documents are now interchangeable. The Rs.10,000 penalty rule, however, is also applicable for giving out a wrong Aadhaar number in lieu of PAN.
Further, as per section 139A of the Income Tax Act, one can have only one PAN number for a lifetime.One can apply for a new card if it is lost or damaged or required rectification of address or name, but there is no need to get a new PAN number. One can have many copies of the same PAN card number, but having multiple PAN card can attract a penalty. They are advised to surrender one.