Step-by-Step Guide On How To Deactivate PAN Card
Let’s say you have two PAN cards under your name. As per provisions of Section 272B of the Income Tax Act., 1961, a penalty of Rs.10,000 can be levied on possession of more than one PAN. So, deactivate the PAN card (the additional one) to avoid this penalty.
Wondering how to deactivate your PAN card? Keep scrolling to check a detailed guide on how to deactivate your PAN card via online and offline processes.
How to Deactivate PAN Card Online
Here are the steps you need to follow to deactivate your PAN card via the NSDL website:
- Visit NSDL Official Website
Visit the online portal of NSDLto kickstart your PAN cancellation or deactivation process.
- Go to ‘Application Type’
Navigate to the ‘Application Type’ section and then choose ‘Changes or Correction in Existing PAN Data’ from there.
- Fill in Mandatory Details.
Now, you will have to fill out the application form by providing all the necessary and accurate details. However, make sure you do not end up ticking any of the boxes. Also, choose the category you belong to from the dropdown menu.
- Submit the Application
Acknowledge by clicking on the checkbox, enter the CAPTCHA and hit ‘Submit’. You will get a “Token Number”. Note down the token number.
- PAN Application Form
Click on ‘Continue with PAN Application Form’ but do not select any boxes.
- Submit the Form
Submit the form and e-Sign it using Aadhaar (optional). At the end of the form mention the PAN card you would like to retain and in the next section mention the card or cards you would like to surrender/cancel/deactivate.
Submit the application form. Make the necessary payment online using a debit/credit card or netbanking or by cheque. PAN card cancellation fee is Rs.96(Rs. 85 for the application + 12.36 percent Service Tax).
How to Deactivate PAN Card Offline
Follow these steps if you want to carry out the procedure offline:
Step 1: First, one needs to obtain form 49A, and after filling it out, he/she has to submit it at the NSDL TIN Facilitation Centre.
Step 2: Another way is to send a letter to an AO of the respective jurisdiction. In that case, an individual must include a few details. These are the assessee’s name, address, data of the PAN card he/she wants to surrender and details of the PAN card he/she will retain.
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Steps to Check PAN Card Cancellation Status
You can follow the given steps to check the status of your PAN cancellation request:
Step 1: Go to the official Income Tax India e-filing website.
Step 2: Navigate to the Quick Links section and click on the ‘Know your PAN/TAN/AO’ option.
Step 3: Enter the OTP received on your mobile number and click on ‘validate’.
Step 4: In the next screen, you can see the status of your PAN card application.
3 Major Reasons to Deactivate a PAN Card
Let’s start with the reason mentioned previously, i.e., having multiple PAN cards. This generally happens when people lose this document. Mostly they apply for a new PAN card instead of opting for a reprint of the existing one. In such a scenario, it becomes necessary to deactivate the extra PAN card which is already in that person’s name.
Other than that, here are some instances when the Income Tax Department of India needs to deactivate a citizen’s PAN card.
1. Fake PAN card
It is often found that individuals opt for fake PAN cards to carry out illegal work or evade taxes. For this, they use fake documents as well. The IT Department deactivates such documents immediately after getting informed about them.
2. PAN card of the deceased
Family members of a deceased person are supposed to send a formal application to the Income Tax Department stating that the cardholder is deceased. Upon receiving that, the IT Department deactivates that person’s PAN card. Note that along with the application, it is advisable to send a copy of the death certificate as well.
3. PAN card for individuals residing outside India
Foreigners or people who live outside the country often decide to stop carrying out monetary transactions here. In that case, they need to submit the PAN card to the IT Department of India in order to avoid any exploitation of the document.
Now that you have a clear idea regarding the possible reasons why a PAN card needs to be deactivated, let’s learn about the process.
Factors to Consider before Deactivating a PAN Card
Before you deactivate a PAN card, you may want to check the following factors:
- You will need to mention both the PAN you want to keep and the one you want to surrender in the PAN Change Request.
- The corresponding PAN card copies have to be submitted with the cancellation request form.
- Once your PAN is deactivated, you cannot use it to file income taxes, view intimations or respond to communications from the Income Tax Department.
- The only time you can request a new PAN card is when you have misplaced your document.
- You can reactivate a cancelled PAN by writing an application to your jurisdictional AO.
- The following documents have to be submitted – a copy of your PAN, the last three years’ income tax returns and an indemnity bond.
- Legal representatives (including heirs) of a deceased person need to send a PAN deactivation request to the local AO. For this, they have to carry the deceased person’s death certificate and PAN details.
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Final Word
In order to avoid facing penalties and paying a hefty amount, it is necessary for every cardholder to be aware of the norms concerning additional PANs. Note that for deceased taxpayers, the legal heirs or relatives need to request PAN deactivation. However, in that case, they must file ITR first, on that deceased person’s behalf, and clear the dues. After that, they can go ahead with the PAN deactivation process.
FAQs on PAN Card Deactivation
Ans: In this case, you need to write a letter addressing that particular assessment officer. You need to request immediate reactivation of the PAN in this letter. You must also attach relevant documents to prove that the blocked PAN was used to file ITR.
Ans: An assessing officer is responsible for the assessment of taxes in a particular jurisdiction. Therefore, when taxpayers deactivate their PAN cards, they must notify an AO. To find out the AO code, one must visit the IT Department’s website and search for it under the ‘Services’ tab.
Ans: In case a company is shutting down for a particular reason, the PAN in the name of the entity has to be surrendered to the IT Department. A company must use the NSDL web portal for this. In form 49A, the company must enter its PAN in the form ‘Item 11’ and submit relevant documents as well.
Ans: In case the Income Tax Department finds out that you have more than one PAN card in your name, you will be penalised for the same. The IT officer can impose a penalty of Rs. 10,000 on you.
Ans: In a recent directive, the Income Tax Department has stated that an e-PAN card is a valid ID proof. This digital variant of a PAN card includes biometric information, such as the e-signature and photograph of cardholders.
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