I have 2 PANs! What should I do?

ou have been worried about your taxable income.

Some of you have two jobs. Others have relatives sending them money to clear off their loans. And you want to know if you will be liable.

Our expert, Relax With Tax, answers your questions:

In one financial year, I held two jobs. These are my questions:

1. Will my taxable income be a combination of what I earned from both these employers?

2. Will both companies give me a Form 16? If my earlier employer does not, what can I do to show the tax I have already paid?

3. Because I did not give sufficient notice, my former employer deducted a certain amount from my salary. Would this result in a decreased taxable income?

4. My new employer has agreed to refund the amount my previous employer had deducted. Will I now have to pay tax on this amount? Can I show it as a loss?

- Rohit Rao

Taxable income is the aggregate of all income received during the year. Hence, your tax will considered according to the aggregated income from both employers.

Ideally, both companies should give you the Form 16 for salary earned during the relevant period.

If you cannot get the Form 16 from your earlier employer, try to get a signed tax estimation. Submit this estimate and a declaration in Form 12B to your current employer who, in turn, will incorporate these details in the Form 16 that he issues.

Notice period recovery is a special recovery from the outgoing employee for failure to comply with the policy laid down by the company. This recovery is not an eligible deduction from your salary.

You will be taxed on the entire salary, not on the reduced salary. The amount received from the new employer towards your notice pay will be taxed.

My brother works in the US and sends money to my account to clear his education loan. I repay his loan amount with my bank cheques. Will this give me any tax implication?

- Murali

As you are receiving money from your brother who works outside India, it is not taxable as income.

The loan repayment on behalf of your brother will not have any tax implications on you either.

I travel abroad on work. Is my allowance taxable?

What if I spend all of it? What if I bring some back?

If I am sent on deputation abroad for six months on a project, I will have to pay tax on my Indian salary. But will I have to pay tax on my allowances there?

- Amol Deshmukh

Any allowance is taxable per se unless specifically exempted from tax as stipulated in the Income Tax Act.

In your case, the allowance you get will be taxable unless it is spent and the relevant expense documentation submitted to your employer.

The unspent amount that you bring back to India will be taxable.

In 2002, I applied for a PAN Card. In July 2004 I reapplied via UTI and got one. Then, the first card came.

Now I have two cards. What must I do?

- Naveen Rana

An individual is not permitted to hold more than one PAN. 

The first thing you need to ensure is, the numbers mentioned on both the cards are the same.

If they are different, you need to get in touch with the TIN facilitation centres to ascertain the correct number.

I left my company on very short notice. They refuse to clear my dues and will not give me the appropriate documents.

Can I apply for my EPF directly? Whom should I approach? Or will I have to forgo it?

I don't want to transfer it to my new company. To withdraw the amount directly from EPF, do I need any documents or clearance from my existing company?

- Vinay Shelar

Please obtain Form 19 and 10C with regard to EPF and pension respectively from any local PF office.

But you will need to obtain the signatures and stamp of your previous employer on these forms to enable you to withdraw your dues.

As a last option, you could lodge a complaint with the PF commissioner in case your employer does not entertain your documents.