How To Surrender PAN Card And Why Should You Do It?
While a PAN card is a mandatory document, there might be certain instances when you might have to surrender your PAN card in case you possess an additional PAN card or if you’re a foreign resident departing from India. The process of surrendering a PAN card is the same as the process for modifying PAN details. That said, the process will vary depending on the reason for the PAN card surrender.
Read more for a step-by-step PAN card surrender guide.
Why Surrender a PAN Card?
Possessing more than one PAN card is illegal and can lead to penalties. The government might incorrectly issue more than one PAN to an individual due to technical or administrative errors. Moreover, you might end up with two PANs if you apply for corrections on your existing PAN and then forget to surrender the previous PAN.
Whatever the reason might be, you should not possess more than one PAN card. You can surrender an additional PAN both online and offline.
How to Surrender PAN Card?
As mentioned above, if you possess more than one PAN card, you need to submit the additional procured PAN card. This can be done Online and Offline. Steps for surrendering your duplicate/additional PAN card are mentioned below:
Steps to Surrender Your PAN Card Online
Follow these steps to surrender an additional PAN online:
Step 1: Go to the official website of NSDL
Step 2: Click on the ‘Application Type’ option and choose ‘Changes or Correction in existing PAN data/ Reprint of PAN Card (No changes in existing PAN data).
Step 3: Now, fill-up the form and submit it. You will receive a token number on the registered email ID. Note it down for future references.
Step 4: Select ‘Continue with PAN application form’ to proceed.
Step 5: You will now be sent to a new page. Here, you have to click on ‘Submit scanned images through e-sign.’
Step 6: Go to the bottom-left corner of the page and specify the PAN you wish to retain.
Step 7: After this, provide all necessary details to fill up the correction form. Provide the PAN you intend to surrender, and then click on ‘Next’.
Step 8: Upload scanned images of the following documents: address proof, identity proof, and proof of date of birth. Also, provide a scanned photograph and signature. If the PAN belongs to a company or LLP, the form should be signed by the Director of the company or the partner, respectively.
Step 9: Review all information and submit the form. Pay the fees and download the acknowledgement slip.
Step 10: Take a printout of the application form and attach two recent photographs to it. Attach all required supporting documents (including a copy of an existing PAN) and send them to this address:
NSDL e-Governance Infrastructure Limited,
5th Floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Model Colony, Near Deep Bungalow Chowk,
Pune – 411 016.
Make sure to mention ‘Application for PAN cancellation’ on the envelope.
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Steps to Surrender Your PAN Card Offline
Go through these steps to surrender duplicate PAN offline:
Step 1: Fill out the ‘Request for a New PAN Card Or/and PAN card correction form.’ You can either obtain it from your nearest TIN facilitation centre or download it from UTIITSL or NSDL e-Gov website.
Step 2: Submit the form along with physical copies of all required documents at your nearest TIN facilitation centre or NSDL collection centre. You will get an acknowledgement slip after document submission.
Step 3: Make sure to write a letter addressing the Assessing Officer of your jurisdiction requesting for cancellation of your duplicate PAN. Post this letter to your nearest income tax office and note down the acknowledgement number for future reference.
How to Surrender PAN Card after the Death of an Individual?
If you want to surrender the PAN card of a deceased individual, you have to write a letter to the income tax officer of the concerned jurisdiction. You have to mention the reason for death and attach a copy of the death certificate with this letter. You have to include other details such as date of birth, name, etc.
Why and How to Surrender PAN Card of a Firm, Partnership or Company?
Any person earning money has to pay taxes and it is mandatory for them to possess a PAN card. Every transaction takes place under this identification number which is unique to all entities, including partnership firms and companies. It helps the Income Tax department in tracking the transactions of the business. While filing income tax returns, a PAN card is necessary.
To surrender PAN for a firm or company, you can follow either the online or the offline process as per your suitability.
The online procedure involves the following steps:
Step 1: Visit the official website of NSDL.
Step 2: Fill out Form 49A with the required information.
Step 3: Provide the duplicate PAN details in item 11 of the form.
Step 4: After submitting the form, collect the acknowledgement receipt.
Step 5: Send the form along with the required documents to the nearest NSDL or UTIITSL office.
If you wish to carry out the process offline, follow the given steps:
Step 1: Send a letter to the concerned Income Tax Officer stating the reason for the same. It is mandatory to state that the company is getting disestablished and that’s why the PAN card is being surrendered.
Step 2: Attach the copy of the deed stating the same along with an acknowledgement for the return filed for the discontinuation period and the PAN card.
Step 3: Submit the above-mentioned document and keep the acknowledgement receipt.
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What Happens if You Do Not Surrender Your Additional/Duplicate PAN Card?
If you do not surrender your additional or duplicate PAN Card, you are always at risk of being penalised. The Income Tax Officer can levy a penalty of Rs. 10,000 for obtaining more than one PAN card as it is illegal.
Things to Consider Before Surrendering a PAN Card
The following pointers need to be taken into consideration before surrendering a PAN card:
- A PAN correction form is used for multiple purposes such as correction in PAN, issuance of PAN and surrender of PAN. Hence, make sure to be careful while filling out the form.
- If you are applying online, the acknowledgement form along with the required documents should reach the NSDL office within 15 days of the online application.
- There’s a chance that the Income Tax Officer might investigate the details submitted. Hence, one should be prepared to face questions.
- There is also the possibility that the Income Tax Officer will not approve your request immediately or until he/she is satisfied. Thus, it is better not to expect immediate results.
Final Word
If you come across any circumstances that require you to surrender a PAN card, make sure to submit it to the government without any delay. You can opt for the online process of PAN card surrender as it is fast, simple, efficient and hassle-free.
FAQs on How to Surrender PAN Card
Ans: Section 139A of the IT Act mandates one PAN card for each taxpayer. However, if you have more than one in possession, you have to pay a fine of Rs. 10,000 as per provisions of Section 272B.
Ans: It is not wise to surrender your existing PAN as it serves as valid ID proof. Moreover, it is necessary for filing IT returns and making various financial transactions. Indian residents should not surrender their PAN card unless they own a duplicate one.
Ans: A foreign national who is leaving India should surrender their PAN card since they would no longer be paying taxes in India. They should write a letter to the income tax officer of their respective jurisdiction mentioning the reason for PAN surrender.
Ans: Firms wanting to surrender their PAN offline have to write a letter to the income tax officer of their jurisdiction. They have to attach a copy of the following:
PAN
Deed mentioned that the firm is dissolved
Acknowledgement of return filed for the period of discontinuation
Ans: It is important to surrender the PAN card of a deceased Indian resident, non-resident and foreign national. Keep in mind that it has to be done only by the close relatives of the deceased individual.
Ans: It is illegal for persons, including individuals and firms to be in possession of more than one PAN card. So if you have more than one PAN, consider surrendering it to avoid a penalty of Rs. 10,000.
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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.
