PAN Card Cancellation: Online And Offline Process

Pan Card

A person having more than one PAN card can be penalised as per provisions of the Income Tax Act, 1961. It is compulsory for an entity or individual with multiple PAN cards to surrender or cancel the additional PAN. 

Keep reading to get an insight into the PAN card cancellation procedure!    

Outcome of Multiple PAN Cards

Section 139A of the IT Act emphasises that an individual can obtain only one PAN card. This provision specifies the eligibility criteria to possess a PAN card. 

According to Section 272B, the IT Department can levy a penalty of Rs. 10,000 on a person holding more than one Permanent Account Number. However, people have a chance to surrender or cancel an additional card by submitting the PAN correction form via the website of NSDL. You will be notified after the successful completion of the form submission and payment. 

Additionally, you can submit a PAN correction form at a nearby NSDL Collection Centre. The respective jurisdiction’s Assessing Officer will be receiving the duly filled up form.   

Also read: How To File PAN Card-Related Complaints?

PAN Card Cancellation Online  

Follow the below-mentioned online procedure to surrender/cancel a duplicate PAN card:

• Go to NSDL’s official website 
• From the ‘Services’ section, choose ‘PAN’ 
• Click on ‘Apply’ in ‘Change /Correction in PAN data’ 
• Under ‘Application Type’, select ‘Changes or Correction in existing PAN data /Reprint of PAN Card (No changes in existing PAN data)’ from the drop-down menu
• From the drop-down menu of ‘Category’, press ‘Individual’
• After filling the form with relevant information, press ‘Submit’. On successful submission, your request gets registered with a token number. You will receive this token number in your registered email ID. You must note down this token number for future reference. 
• Next, press ‘Continue with PAN  Application Form’   
• You will be taken to a different page. At the top of this page, press ‘Submit scanned images through e-Sign’
• You need to specify the PAN you want to keep at the page’s bottom-left corner.
• Now, fill in the form with your contact number and personal details
• On the next page, you should specify the details of the additional PAN cards (that you wish to surrender). After that, press ‘Next’
• On the succeeding page, choose the relevant identity proof along with date of birth and residence address
• Then, upload scanned photographs along with necessary documents and authorised signatures
• A person should put his/her signature on the acknowledgement receipt. An authorised signatory can also approve the receipt for surrendering PAN. For instance, a Director of a company and a partner of an LLP/Partnership firm can be authorised signatories.     
• After successful submission, you can preview your application form. Verify your information and make changes, if required. 
• Proceed to pay through demand draft, internet banking, credit card or debit card
• After successful payment, you can download payment acknowledgement. You need to take a printout of this receipt for future reference. 

You need to submit a photocopy of the acknowledgement slip and two photographs to NSDL. Before sending the receipt, you need to mention ‘Application for PAN Cancellation’ and Acknowledgement Number on the envelope. You should send the duly signed acknowledgement slip (including demand draft if you have selected that payment mode) to the NSDL office.

Also read: How To Generate A Duplicate PAN Card ?

PAN Card Cancellation Offline

The offline procedure for surrendering your Permanent Account Number is given below:

• Taxpayers must fill up Form 49A for rectifying mistakes in their PAN cards. They should submit the form to an NSDL-TIN centre.  
• A taxpayer can also send an application to the assessing officer of the specific jurisdiction and mention the following details: 

1. Name 
2. Address
3. Details of PAN cards to be surrendered
4. Information of the PAN card to be retained

An individual must keep the application’s acknowledgement copy. The income tax authority’s acknowledgement letter serves as proof for PAN cancellation.   

PAN Card Surrender of a Deceased Person

After the demise of a PAN cardholder, the deceased person’s relatives must write an application to the tax officer of the particular jurisdiction. The application must mention the reason for surrendering (in this case, the card holder’s death). You need to submit a death certificate as well. 

You should specify the personal details of the deceased such as name, date of birth and PAN. The same procedure is applicable for the death of foreign nationals and non-resident individuals. 

PAN Card Cancellation for a Partnership/Firm/Company    

Entities can surrender additional PAN cards through Form 49A available on the NSDL website. If a partnership/firm/company has been dissolved or shut down, the entity needs to surrender its Permanent Account Number to the respective authorities. Follow the below-mentioned online procedure to cancel the PAN of a partnership/firm/company:

• Go to NSDL’s official portal 
• Press ‘Application Type’ and select ‘Changes or Correction in existing PAN data/Reprint of PAN Card (No changes in existing PAN data)’ from the drop-down menu
• Under ‘Category’, press ‘Company, Firm or Partnership’
• Proceed to fill the details in the form 
• Under Item 11 of Form 49A, mention the relevant PAN for cancellation 
• After submitting this form, take a printout of the acknowledgement 

You need to send the necessary documents and the acknowledgement to the NSDL address. After your request gets processed, you will receive a notification.  

Also read: A Step-By-Step Guide On How To Surrender Your PAN Card

Final Word

The Government of India facilitates a hassle-free PAN Card cancellation procedure to ensure maximum convenience. Make sure you do not own more than one Permanent Account Number and file income tax returns correctly!

Frequently Asked Questions

1. Can an individual surrender an existing PAN?

A person can now surrender his/her existing Permanent Account Number. He/she has to submit an application for cancellation to the Assessing Officer of the specific jurisdiction. However, you need not cancel your PAN since it is mandatory for monetary transactions and acts as identity proof. 

2. What are Assessing Officer Codes?

At the time of ITR filing, an Assessing Officer examines a taxpayer. So, the IT department keeps Assessing Officer Codes (AO Codes) in the taxpayer’s area of jurisdiction to track income tax returns. AO Codes are compulsory for cancellation or application of PAN cards. To find your area-based AO Code, you need to visit the official portal of the IT Department.

3. How to pay for PAN cancellation?

If a taxpayer wishes to cancel his/her Permanent Account Number, he/she has to file a request form along with a cheque or demand draft of Rs. 96 (service tax of 12.36% + Application fee of Rs. 85) favouring ‘NSDL-PAN’. You should pay the demand draft at Mumbai, while the cheque can be dropped with an HDFC bank branch in India.     

4. How to track PAN card cancellation status online?

You can check the status of your cancellation request by following these steps:

• Go to Income Tax e-filing portal
• Choose ‘Know Your PAN/TAN/AO’ in Quick Links
• Furnish information such as name, mobile number, gender, date of birth and press ‘Submit’
• An OTP will be sent to your registered mobile number.
• Give OTP and press ‘Validate’
• The next screen will display your PAN card status

For individuals having multiple cards in their name, additional details are required for tracking PAN card status.   

5. Does a person have to opt for a new PAN while shifting to a different city?

A Permanent Account Number is valid throughout India and is a 10-digit alphanumeric code. A person moving to a different city within India does not need to surrender the existing/current PAN card. Non-resident Indians must also possess a PAN card.

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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.