A Permanent Account Number card is an important document for all financial transactions and income tax filings in India. Sometimes, however, a PAN card needs to be cancelled. These include duplicate issuance, incorrect details, or even the cessation of operations for businesses. A formal request letter is necessary to start the cancellation process.
This blog provides an elaborative guide on how to draft a PAN card cancellation request letter. It explains the scenarios requiring cancellation and offers a sample format.
Introduction
A PAN is a unique 10-digit alphanumeric number issued to each taxpayer. Yet, a taxpayer can have only one PAN for his lifetime. The government has not permitted any individual to hold more than one PAN card. In such a case, there is a process for surrendering or cancellation of the PAN card.
If a person has more than one PAN card, then that person is heavily penalised or, even worse, could be jailed. With the Government of India mandating linking one’s Aadhaar with their PAN card, every individual and business entity having issued more than one PAN in his name has been left with no other choice but to cancel or surrender their additional PAN cards. PF claim tracking is the status check of a claim submitted to the Provident Fund for the amount claimed.
To help in such a situation, there is a way to cancel the PAN card, and the Income Tax Department has introduced a procedure that starts with writing a formal cancellation letter.
Reasons for PAN Card Surrender or Cancellation
Cancellation of a PAN card usually occurs in the following situations:
- Multiple PAN Cards- In case, people or even entities receive multiple PAN cards by mistake. In such cases, holding more than one PAN card attracts penalties. In such a case, the duplicate has to be cancelled.
- Incorrect Details- In cases where the PAN card contains errors in details such as name, date of birth, or address, the card has to be cancelled to produce a corrected one.
- Closing Down Business Operations- Businesses that are closing down or have served their purpose need to cancel the PAN card issued to them.
- Death of the PAN Card Holder- When the cardholder has expired, the PAN card may be sought to be cancelled by his/her family members.
- Legal Structure Change- For the organizations that have gone for merger and acquisition and also have undertaken structural change, the PAN card issued may require cancellation of the old PAN card.
Consequences of Having Two PAN Cards
Section 139A prohibits having two PAN cards for a single person. In case an individual holds two or more than one PAN card, then he has to apply for the surrender of all such PAN cards except one which he uses. One Aadhaar card is permitted to be linked with only one PAN number and all financial transactions have to be made using that PAN card.
According to Section 272B, Income Tax Act, an income tax officer can demand a penalty of Rs.10,000 from one individual whose PAN card is more than one.
How to Surrender a PAN Card?
You can surrender other PAN numbers online or offline. The offline way is, however, more effective. You are required to write a request letter to your local income tax assessing officer requesting to surrender or cancel your currently used PAN / PAN of the firm.
PAN Card Cancellation Request Letter – Download Word Format Online
A surrender request letter, in formal writing, should incorporate the dates, subject, address, and the most important point is the reason for cancelling the PAN Card.
Your Name/Entity Name
Your Address
City, State, PIN Code
Contact Number
Email Address
Date-
To,
The Assessing Officer,
Income Tax Department,
Address of the Concerned IT Office
Subject- Request for Cancellation of PAN Card
Respected Sir/Madam,
I am writing to formally request the cancellation of my Permanent Account Number (PAN) card with the details mentioned below.
- PAN Number- Your PAN Number (E.g.- XHXEFSY10P)
- Name on PAN Card- Your Full Name/Entity Name (E.g.- Pratik Kumar)
- Reason for Cancellation- Explain the reason concisely, e.g., duplicate issuance, cessation of business, etc.
The above-mentioned PAN card is no longer required due to (state reason, e.g., issuance of a corrected PAN card, closure of business, or duplicate card). I have attached the required documents to support this request-
- Copy of the PAN card to be cancelled.
- Proof of the duplicate/corrected PAN card issued (if applicable in your case).
- Identity and address proof (if required in your case).
I kindly request your attention in processing this cancellation at the earliest. Please confirm the cancellation by sending a formal acknowledgement to my email address or the residential address mentioned above.
If you require any further details or any documentation, please feel free to contact me at +91XXX562XXX5.
Thank you for your kind attention to this matter.
Yours sincerely,
Your Full Name/Authorized Signatory
(If any Designation applicable)
Conclusion
Cancelling a PAN card is a very simple but crucial process for people and entities dealing with problems like duplicate cards, incorrect details, or business closure. A well-drafted request letter is the key to initiating this process and ensuring compliance with the Income Tax Department’s requirements.
Following the structure and guidelines laid out in this blog, you can write a professional and effective cancellation request letter. Whether it is an individual or a business entity, these steps will help the process of cancellation be easy and confident.
Further information or clarifications may be sought on the official website of the Income Tax Department or with a tax consultant for easy processing.
References
The Income-Tax Act, 1961 (Act No. 43 of 1961)
