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!
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.
Follow the below-mentioned online procedure to surrender/cancel a duplicate PAN card:
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.
The offline procedure for surrendering your Permanent Account Number is given below:
An individual must keep the application’s acknowledgement copy. The income tax authority’s acknowledgement letter serves as proof for PAN cancellation.
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.
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:
You need to send the necessary documents and the acknowledgement to the NSDL address. After your request gets processed, you will receive a notification.
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!
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.
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.
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.
You can check the status of your cancellation request by following these steps:
For individuals having multiple cards in their name, additional details are required for tracking PAN card status.
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.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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