How to Cancel or Surrender a PAN Card Online?

A Permanent Account Number (PAN) is a ten-digit alpha-numeric code allotted by the Income Tax Department of India. It acts as an important instrument to identify financial exchanges and facilitate accountability by enhancing openness to tax fraud alleviation. However, there are some circumstances under which an individual may be required to cancel or surrender the PAN card. This blog is written with the intention of helping people understand the process of how they can cancel or surrender their PAN card and under what conditions they might do so.

Why Do You Need to Cancel or Surrender a PAN Card?

PAN card is essential for several operations in the economy, there are many reasons to cancel PAN card or surrender there are some reasons as mentioned below. Some common reasons include:

1. Duplicate PAN Cards: If an applicant has filled out PAN cards many times, then they have to return the duplicate PAN card, which may lead to legal action. Currently, the Income Tax Department allows only one PAN per person.
2. Change in Name or Gender: When an individual changes his name, say through marriage or for gender correction surgery, the PAN card number also changes, implying that those who have corrected the PAN card numbers will have to cancel the current one.
3. Death of the PAN Cardholder: If the particular holder of the PAN is no longer, then the PAN card has to be returned to the authorities to make sure that nobody is adding any more transactions linked to the dead PAN holder.
4. Relocation of the PAN Cardholder to a Foreign Country: For instance, if a person migrates to another country for an indeterminate period and is not such a resident of India anymore, they can decide to surrender his/her PAN card to avoid future tax liabilities in the country.
5. Company or Entity Closure: In a situation where any company firm or any other legal entity holding a PAN card gets closed or shuttered, in the case PAN card must be surrendered so that further tax returns cannot be filed in the name of that PAN card holder without getting penalized for this act.
6. Incorrect PAN Card Details: If the PAN has some wrong details that cannot be changed through an update and includes the name of the father or date of birth, the PAN cardholder may choose to get a new PAN card.

Cancel or Surrender Your PAN Card Online

Step 1: Gather Necessary Documents

• A copy of the PAN card that needs to be surrendered.
• Supporting documents include a marriage certificate (in case of name change), a death certificate (in case of a deceased PAN cardholder), or a formal letter from the concerned company (for company closure).
• Proof of identity and address, if required.

Step 2: Log in to the NSDL or UTIITSL Website

In India, Pan Card services management is mainly controlled by two organizations: NSDL, or National Securities Depository Limited, and UTIITSL, or UTI Infrastructure Technology & Services Limited. Both platforms are open to cancel or surrender your PAN card.

Surrender of Duplicate PAN Card (If You Have More Than One PAN)

If you have multiple numbers of PAN cards, you are required to surrender the additional PAN card. Here’s how you can do it:

1. Go to the NSDL or UTIITSL Website: Visit the official website of NSDL or UTIITSL. Under PAN services, there is the feature of cancellation and correction of the PAN card that one can choose from NSDL.
2. Fill out the PAN Correction Form: Click on the action required for filling the PAN correction form 49A. Finally, this form can be used to cancel the PAN card issued because of multiple cards. You will be required to complete some of these sections, such as name, date of birth, address, and PAN details.
3. Indicate the Reason for Surrender: In the form, an explanation is required as to why one has surrendered the PAN card. In case you surrender a duplicate PAN, it must be mentioned.
4. Submit the Required Documents: In addition to the form, ID and proof of residence will be necessary to submit as part of the process. Additional documents or copies required if more than one PAN card is being applied, surrender duplicate PAN card photocopy.
5. Make Payment (If Applicable): There are times that you will be asked to pay a small amount to negotiate the surrender of your trip. It will also be possible to make payments via the website that is available.
6. Submit the Form: Once completed, they must attach the required documents and submit the form online. If you choose the offline method, then the form and documents can be submitted to the concerned authority directly.
7. Wait for Confirmation: When your application is sorted, you receive a notice from the Income Tax Department confirming whether or not the duplicate PAN has been cancelled or surrendered.

Surrender of PAN Card due to Death

If the card has been issued to a PAN cardholder and the said cardholder is no longer there, then the legal representative is supposed to surrender the card. Follow these steps:

1. Obtain the Death Certificate: When surrendering a commodity, make sure that you bring the death certificate of the deceased person.
2. Prepare a Letter for PAN Surrender: A formal letter needs to be written on the demise of the PAN cardholder; an original PAN card for cancellation along with the death certificate can be provided.
3. Submit Documents to the Income Tax Department: Affix the PAN card, death certificate and other documents mentioned above and send the letter to the Income Tax Department or to the nearest PAN Service centre.
4. Receive Confirmation: On verification of the documents, the PAN is cancelled by the Income Tax Department, and the representative of the deceased is informed.

Surrender of PAN Card due to Other Reasons

If you need to surrender your PAN card due to a name change, relocation, or company closure, follow these steps:

1. Fill Appropriate Form: Form 49A is for individuals, and Form 49AA is for use by foreigners or companies that are carrying out international business.
2. Submit Documents: Provide necessary documents, marriage certificates to support name change, if any, documents that show the closure of a company, or evidence of moving to another country in a different time zone.
3. Cancellation Request: In the form, state fairly that you would like to cancel or surrender the PAN card.
4. Submit to NSDL or UTIITSL: Fill out the form completely and submit it with supporting documents.
5. Processing and Confirmation: The Income Tax Department will automatically respond to your request after it has considered your request.

Conclusion

Surrendering or cancelling a PAN card is a straightforward process that can be done online or offline. Whether you are dealing with a duplicate card, a name change, the death of the PAN cardholder, or company closure, following the correct procedure ensures obedience to tax laws and helps avoid legal complications. Always ensure that the information provided during the process is accurate and complete to avoid delays.

If you are unsure about the procedure or need assistance, you can seek help from a professional or directly contact the Income Tax Department for guidance.