PAN Card Cancellation Online

When an individual has more than a single PAN card, it may lead to that person being heavily penalised, or worse, could even be jailed. Since the Government of India has made it mandatory to link one's Aadhaar with their PAN card, every individual and business entity with more than one PAN card issued in their name has been compelled to cancel or surrender their additional PAN cards.  This article discusses the online process for PAN Card cancellation for individuals and entities holding multiple Permanent Account Numbers (PAN).

Consequences of Additional PAN

When an individual is in possession of more than one PAN card, they may be penalised as per the law set by the Government of India.  According to Section 139A of the Income Tax Act of 1961, an individual is only permitted to hold one single PAN card. This section of the Act talks about the eligibility for obtaining a PAN card. 

Therefore, an Income Tax Officer has the power to impose a penalty of INR 10,000 on any individual who has more than one PAN card as per Section 272B of the Income Tax Act. 

However, individuals have been given the opportunity to cancel/ surrender the additional PAN cards by merely visiting the NSDL online portal and completing the PAN card cancellation Form for PAN corrections. The individual would receive a notification once the Form and payment have been successfully processed. 

Additionally, one may even surrender/ cancel their additional PAN card by submitting the PAN Correction Form at their nearest NSDL Collection Centre. 

Once the PAN card cancellation Form is duly completed, the same may be sent and paid for to the Assessing Officer of the respective jurisdiction.

How to Cancel a PAN Card Online?

The procedure mentioned below has to be followed on how to cancel PAN card online

Step 1: Go to the NSDL website.

Step 2: Select the option ‘Changes or Correction in existing PAN data/ Reprint of PAN card’ and choose the appropriate category: PAN cancel.  

Step 3: Fill in the required details accurately and submit the PAN cancellation form.

Step 4: After submission, a unique token number will be sent to the email address mentioned in the form. Keep this token number for reference.

Step 5: Click ‘Continue with PAN Application Form’.

Step 6: On the new page, select the mode of submission for documents, fill in essential personal details, and click Next.

Step 7: Under contact details in the form, check the box and mention additional PANs that you want to cancel, then click Next.

Step 8: Upload proof of identity, date of birth, residence, and a copy of the additional PAN to be canceled, and submit.

Step 9: Fill out and submit the declaration.

Step 10: If the PAN to be canceled belongs to a company or partnership firm, an authorized signatory must sign the form.

Step 11: You will be redirected to the payment page. Payment can be made via credit/debit card, demand draft, or internet banking.

Step 12: An acknowledgement slip will be generated after successful payment.

If sending documents physically, print the application, affix a photograph, sign it, and send it along with proofs to: Income Tax PAN Services Unit,

Protean eGov Technologies Limited,

4th Floor, Sapphire Chambers,

Baner Road, Baner, Pune - 411045

Note: To cancel all PANs inadvertently allotted, mention them under ‘Mention other Permanent Account Numbers (PANs) if any, inadvertently allotted’ and attach the corresponding PAN copies.

How to Cancel PAN Card Offline?

There are two offline methods to cancel a PAN card:

Method 1: Through the PAN Centre

1. Visit a PAN centre and collect the ‘Request for a New PAN Card Or/and PAN card correction’ Form or download it from the Income Tax Department website.
2. Fill the form with the required details. Under item number 11, mention the PAN number you want to cancel.
3. Submit the form at the nearest PAN centre along with proof of identity, date of birth, address documents, and the PAN card to be cancelled.
4. An acknowledgement slip will be issued upon submission.

Method 2: By Writing to the Assessing Officer

1. Write a PAN card cancellation letter to the local assessing officer.
2. Include the following details:
• Name: Must match the PAN card.
• Address: Provide a valid residential address.
• PAN details: Mention clearly the PAN cards issued and the one(s) to cancel.
• Reason for cancellation of PAN card.
3. Submit the letter to the officer and collect the acknowledgement copy, which serves as proof of PAN cancellation.

Surrender or Cancellation of PAN Card of a Deceased Person

In the event of the death of a PAN cardholder, the relatives or legal heirs can cancel the PAN card by writing a letter to the Income Tax Officer of the respective jurisdiction.

The letter should include:

• Reason for cancellation: Death of the PAN cardholder
• Details of the deceased: Name, PAN card number, date of birth, and other relevant information
• Supporting document: A copy of the death certificate of the deceased
• This procedure applies to the cancellation of PAN cards for Indian residents, NRIs, and foreign nationals.

Surrendering PAN of Company/ Firm/ Partnership

The procedure mentioned below has to be followed in order to cancel your duplicate PAN cards online. The PAN card issued in the name of a company, LLP (Limited Liability Partnership), or partnership firm must be surrendered if the entity is shut down or dissolved. The surrender or cancellation can be done online or offline.

Online Process

• Step 1: Visit the official NSDL web portal. 
• Step 2: Click on Application Type. From the drop-down menu, click on the Changes or Correction in existing PAN Data/ Reprint of PAN Card (No changes in existing PAN Data) option. Step 3: For Category, select the option of Company, Firm or Partnership and proceed with filling the Form online. 
• Step 4: In Form 49A, enter the PAN that has to be cancelled in Item 11 of the Form. 
• Step 5: Submit the completed Form and print out the acknowledgement. The user is required to send the same along with the necessary documents to the NSDL Office Address mentioned on the Form. 
• Step 6: Once the request has been processed, the user would receive a notification indicating the same

Offline Process

1. Write a letter to the Income Tax officer under whose jurisdiction the company or firm was filing taxes.
2. In the letter, clearly mention that the company or firm has been dissolved and the PAN card needs to be surrendered.
3. Attach the dissolution deed and copy of the PAN card along with the letter.
4. Submit the documents to the Income Tax officer and obtain the acknowledgement as proof of submission.

Surrendering Current PAN

It is always recommended that an Indian citizen not surrender or cancel their PAN card as it serves as a valid identity proof. However, in the case of Foreign nationals who are leaving the country and who would not be paying any taxes to the Indian Government, the PAN card would not be of any use. Such individuals may write an application to the Income Tax Assessing Officer of their respective jurisdiction in order to surrender their PAN card. They would be required to mention the reason for the surrender in the application. This would lead to the cancellation of the relevant PAN card. After this, the same could be surrendered to the tax officer by the respective PAN card holder.

PAN Card Cancellation Status Check

After submitting your PAN card cancellation request, you can track the status of your application by following these steps:

• Visit the official Income Tax e-filing website.
• Under ‘Quick Links’, select ‘Verify PAN Status’.
• Enter your PAN number, name, date of birth, and mobile number, then click ‘Continue’.
• Enter the OTP sent to your registered mobile number and click ‘Validate’.
• The current status of your PAN card cancellation will be displayed on the screen.

Things to Consider Before Surrendering or Cancelling a PAN Card

Before surrendering or cancelling your PAN card, keep the following points in mind:

• Reason for cancellation: Be clear about why you are cancelling your PAN card, such as holding multiple PANs or any other valid reason.
• Verify documents: Ensure you have all required documents, including a copy of the PAN card to be cancelled, identity proof, address proof, and date of birth proof.
• Mode of cancellation: Decide whether to cancel your PAN card online or offline, considering accessibility, convenience, and personal preference.
• Follow guidelines: Carefully review the instructions on the application form. Make sure all details are correctly filled, documents are submitted, and the form is signed to avoid errors or delays.
• Seek assistance if needed: If you face any issues during the cancellation process, contact the Income Tax Department’s helpline at 020 27218080 for guidance.
• Update records: After cancelling your PAN, inform banks and other entities where the cancelled PAN was used to prevent discrepancies.
• Maintain copies and receipts: Keep photocopies of all submitted documents and acknowledgement receipts as proof of submission.
• Follow up: If you do not receive an acknowledgement or response within a reasonable time, contact the Income Tax Department to check the status of your application.

Every taxpayer must have a PAN card, but only one PAN per individual is allowed. Holding more than one PAN can attract a penalty, so it is essential to cancel or surrender any extra PAN cards promptly.

Click here to learn more about PAN Card Surrender

Reasons for Cancellation of a PAN Card

There are a few common reasons why a PAN card may need to be cancelled:

• Multiple PANs issued: Due to human or administrative errors, the Income Tax Department may issue multiple PAN numbers to a single taxpayer. In some cases, an individual may also apply for a PAN more than once, leading to multiple PAN allocations.
• Incorrect information: Sometimes, the PAN card issued contains incorrect details, such as a misspelled name or an inaccurate date of birth. In such cases, the individual must cancel the existing PAN card and apply for a new one with the correct information.

Conclusion

A PAN card is a crucial identification and tax-related document for every taxpayer in India. Ensuring that you hold only one PAN card is not just a legal requirement but also helps avoid penalties and complications in financial and tax matters. Whether you are an individual, a business entity, or dealing with PANs of a deceased person, following the correct online or offline procedure for PAN cancellation or surrender is essential. Always verify your documents, adhere to guidelines, and maintain receipts for reference. By taking timely action, you can ensure compliance with the Income Tax regulations and prevent any legal or financial issues related to multiple PANs.

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