Can NRIs hold PAN cards in India?

Yes, NRIs who have taxable income in India must have a PAN card. Also, NRIs who want to invest in mutual funds or stocks in India also need a PAN card.

Can we cancel an existing PAN card and apply for a new one simultaneously?

No, you can’t cancel your existing PAN card and apply for a new one simultaneously, as you can only cancel duplicate PANs. If you need any changes to your existing PAN card, you can choose the appropriate correction form and request them.

Should I cancel my PAN card if I move to another city in India?

If you move to another city within India, you do not necessarily need to cancel your PAN card. The PAN card by the Income Tax Department is valid all over the country. However, you should update the address details associated with your PAN card. The Income Tax Department allows you to have the same PAN card while updating your address to reflect your new city of residence.

What to do if the Income Tax department issues two cards to one person at the same time?

Having two PAN cards for the same person is not permitted and can lead to confusion and potential legal issues. In such cases, you should immediately contact the Income Tax Department to rectify the situation. Inform them about the duplicate issuance and follow their guidance to resolve the matter, which may involve cancelling one of the PAN cards.

Should an Indian national working in a different country cancel his/her PAN?

Indians not living in India or NRIs should not cancel their PAN since it is needed for taxation and transactions in India. In the case where you have a duplicate PAN card, this is the only scenario under which an Indian National will cancel a PAN.

Is the PAN card fee refundable?

No, the PAN card application fee is non-refundable, even if the application is denied. The process to cancel pan card is completely different.

How much time does it take to deactivate the PAN card?

The deactivation of a PAN card usually takes 10 to 15 business days from the date the request is submitted to the Assessing Officer. To cancel a PAN card, you must send a letter to the Assessing Officer.

Is there any fee for PAN deactivation?

The Income Tax Department does not charge a separate fee for the deactivation of a PAN card or to cancel PAN card.

How to Cancel PAN Card Online and Offline?

The primary use of a PAN Card is to track taxes and businesses across India. In some instances, individuals may want to cancel their PAN Card due to duplicate issuance, inaccurate information, or changes to legal information.

Knowing how to cancel a PAN card, whether online or offline, will assist you in avoiding future problems and staying in line with the tax laws. The guide gives simple steps to follow, examples of reasons to cancel, and how this can happen after cancellation.

Key Takeaways

To remain compliant, individuals should cancel duplicate or incorrect PAN cards.

Once a cancellation request has been submitted, individuals can use the acknowledgement number to track its status.

A specific PAN cancellation process (PAN-CR) exists alongside normal PAN correction/change procedures.

By canceling duplicate or wrongly issued PAN cards, a person can avoid fines, KYC complications, and the messiness of a financial statement.

Pan Card Cancellation Form

To surrender or cancel a duplicate PAN card, fill out the "Request For New PAN Card Or/And Changes Or Correction in PAN Data" form, which is available on the Protean (previously NSDL) site or at PAN service centers.

Here’s a step-by-step process:

Enter the PAN you want to keep in the top section.

In Item No. 11 – “Mention other PANs inadvertently allotted”, list all duplicate PAN numbers you wish to cancel.

Fill in your personal details exactly as per your identity proof.

Attach copies of the duplicate PAN cards and valid ID proof.

Sign the declaration and submit the form online or at a PAN centre.

You will receive a 15-digit acknowledgement number to track the request.

Note: This form is used only for surrendering duplicate PANs, not for Aadhaar linking or PAN reactivation.

How to Cancel a PAN Card?

The steps to cancel a PAN card are similar to the ones you submit for a change in a PAN card. You can cancel a PAN card online or offline at your convenience.

Steps to Cancel a PAN Card Online

Go to the Protean (formerly NSDL e-Gov) or UTIITSL portal.

Under ‘Services’, click on PAN.

Select “Apply” under the ‘Change/Correction in PAN Data' section.

Under the application type, select “Changes/Correction in Existing PAN Data”.

Fill in your relevant details correctly in the PAN card cancellation form.

Make an online payment to submit a PAN card cancellation online.

Download the application details or acknowledgement details for further reference.

Steps to Cancel a PAN Card Offline

Visit the Protean PAN service centre.

Find the “Request For New PAN Card Or/ And Changes Or Correction in PAN Data” form.

Fill out the form with your relevant details.

Add the duplicate PAN card details in the section allotted in the form.

Take the necessary documents, such as your original PAN card and duplicate copies.

Visit the nearby NSDL office to submit the duly filled form.

The authorities will verify the details and provide an acknowledgement slip.

In this process, you may also need to provide a letter, along with the form, explaining the cancellation of the duplicate PAN card.

How To Check Pan Cancellation Status?

Here are the steps to check the status of your PAN card cancellation.

Go to the NSDL e-gov portal.

Under ‘Services’, click on PAN.

On the left side of the page, find the ‘Know Your Application Status’ option.

Under ‘Application Type’ select ‘New/Change PAN Request’.

Enter your 15-digit acknowledgement number.

Enter the code displayed on the screen.

Click on ‘Submit’.

Reasons for PAN Card Cancellation

Duplicate PAN: Individuals may have unintentionally obtained multiple PAN cards, which is illegal. Cancelling duplicate PAN cards streamlines financial records and prevents potential misuse.

Incorrect information: Inaccurate personal details, such as name, date of birth, or address, on a PAN card could lead to cancellation to ensure accurate documentation.

Death of a PAN holder: In the unfortunate event of a PAN holder's death, their PAN card may need to be cancelled to prevent identity-related issues.

Migration to another country: If an individual is shifting to another country and there is no possibility for further financial transactions in India, then they choose to cancel the existing PAN card.

Closure of a business: Businesses that cease operations or dissolve may choose to cancel their PAN cards to wrap up financial matters.

Lost or stolen: Individuals might opt to cancel their PAN card to prevent misuse in cases of loss or theft.

Things to Consider Before Cancelling PAN Card

Cancellation Reason: Before cancelling the PAN card, identify the purpose for which you want to cancel the card. The most common reasons given by people are duplicate PAN numbers, wrong PAN details, relocation out of the country or discontinuation of the business.

Verify documents: Arrange your PAN copy along with valid identity proof, address proof, and date of birth proof before starting the process.

Mode of cancellation: Decide between online submission or offline form filing depending on ease of access and comfort.

Read the guidelines: review every instruction carefully, provide accurate details, attach documents properly, and sign the form correctly.

Records update: Once it is cancelled, report it to banks and other financial institutions to avoid record mismatches.

Retain Documents: Keep all acknowledgement Receipts and Copies of your Documents that you have submitted to successfully track the cancellation of your PAN number.

What Happens if You Don’t Cancel a PAN Card?

Using multiple PANs or inaccurate details can disrupt your financial transactions, tax calculations, and overall financial record-keeping. According to the Indian Government, an individual cannot hold more than one PAN card.

If a person holds more than one PAN card, under Section 272B of the Income-tax Act, 1961, a penalty of ₹10,000 is levied. Furthermore, multiple PAN cards can create challenges with Aadhaar linking, affecting your ability to complete KYC and access government benefits.

How to Cancel a PAN Card of a Deceased Person?

This requires action by the legal heirs. Here’s how to cancel PAN card of a deceased person:

Clear any outstanding tax dues and e-file Income Tax Returns on behalf of the deceased, if applicable.

Draft a signed letter addressed to the jurisdictional Assessing Officer giving the deceased's name, PAN, date of death, and your relationship to the deceased.

Provide a copy of the death certificate; provide a copy of the deceased's PAN card, if available; and provide a copy of your own identification (as the heir).

Cancel PAN of Company/ Firm/ Partnership

To cancel the PAN for a dissolved partnership or corporation:

Pay all taxes owed and file a final education tax return for the period before dissolution.

The signatory on the bank account of a company should write a letter to the assessment office in their local tax authority stating the name of the entity and PAN, and send a statement of dissolution.

Attach a copy of the deed of dissolution, the original PAN (if available), and provide proof of authority to the person who signed the request.

Conclusion

When duplicate PAN cards are issued to an individual, or when their information has changed (for example, address or name), cancelling the PAN becomes necessary. Because a PAN is used for filing taxes, obtaining banking services, and verifying identity, inaccurate records can create confusion and lead to penalties.

The most effective way to cancel a PAN Card in a timely fashion, and you have the correct financial history, is to make sure that you use the correct method, provide the necessary documentation, and follow up on your request.