One PAN – One ID Policy

As per Clause 3.3(b) of the Direct Selling Guidelines 2016 and in compliance with the Direct Selling Rules 2021, OKFLIP INDIA mandates that every Direct Seller’s details must be verified, including:

  • Proof of Address
  • Proof of Identity (Aadhaar, Passport, Voter ID, etc.)
  • PAN Card (Permanent Account Number)
To maintain transparency, prevent duplication, and comply with tax regulations, each Direct Seller is allowed to register with OKFLIP INDIA using only one PAN number.

Implementation of One PAN – One ID Policy in OKFLIP INDIA

1. Single Registration:

A Direct Seller cannot re-register as a new Direct Seller with OKFLIP INDIA while their existing ID is active.

2. Active Status Duration:

A Direct Seller’s ID remains active for 2 years from the date of the last business transaction (either a purchase or commission earnings).

3. Expiration & Re-registration:

If there is no activity for 2 years, the ID is marked as expired in OKFLIP INDIA’s records. After expiration:

  • The Direct Seller may register again as a fresh business entity using the same PAN card.
  • The previous ID cannot be used for new transactions.

TDS (Tax Deducted at Source) Compliance & Legal Considerations

4. Avoidance of Multiple TDS Deductions:

  • If multiple IDs are linked to the same PAN card, it creates TDS-related discrepancies, increasing compliance burdens and legal complexities.
  • As per Income Tax Act, 1961, repeated TDS deductions on different IDs under the same PAN can lead to tax filing errors, delayed refunds, and additional scrutiny by tax authorities.
  • To ensure accurate TDS filings and prevent unnecessary administrative workload, OKFLIP INDIA enforces the One PAN – One ID rule strictly.

5. Legal & Compliance Risks:

  • Maintaining multiple IDs for one PAN can violate financial reporting norms and result in penalties or inquiries from regulatory bodies such as the Income Tax Department and the Ministry of Consumer Affairs.
  • The Legal & Compliance Department of OKFLIP INDIA must process unnecessary corrections, leading to additional costs and compliance risks.
  • Any Direct Seller found violating this policy may face immediate deactivation of duplicate IDs and legal action as per company policy and government regulations.

Reactivation & Exceptional Cases

6. Reactivation Option:

  • If a Direct Seller wants to reactivate their expired ID, they must submit a written request within 3 years of expiration.
  • The request will be reviewed and approved by an authorized director of OKFLIP INDIA after due diligence.

7. Beyond 3 Years:

  • If more than 3 years have passed, reactivation can only be considered in exceptional cases and must be approved in a Board Meeting of OKFLIP INDIA.

This policy ensures legal compliance, fair business practices, tax accuracy, and administrative efficiency in OKFLIP INDIA.