Everything You Need to Know About PAN Card Cancellation

Possessing multiple Permanent Account Numbers (PAN) can lead to significant penalties and legal consequences. The Indian government mandates that individuals and entities should only have one PAN card, and duplicate cards must be canceled. Additionally, with the requirement to link Aadhaar with PAN, it has become more critical to ensure that you hold only one PAN card. Here’s a comprehensive guide on how to cancel a PAN card if you find yourself with more than one.

How to Cancel a PAN Card

1. Online PAN Card Cancellation

To cancel a PAN card online, follow these steps:

• Visit the official Income Tax Department website: Go to the e-filing portal of the Income Tax Department.
• Submit a PAN Change Request:
• Download the 'PAN Change Request' form from the portal.
• Fill in the PAN you wish to retain at the top of the form.
• List the additional PAN(s) that need to be canceled.
• Submit Documents: Upload or submit supporting documents, such as a copy of the PAN card(s) being canceled, and provide identification proof.
• Acknowledge Receipt: Upon submission, you will receive an acknowledgment number, which serves as proof of the cancellation request.

2. Offline PAN Card Cancellation

For those preferring offline cancellation, follow these steps:

• Complete Form 49A:
• This form is available at Protean eGov Technologies Limited (formerly NSDL) TIN facilitation centers. Fill out the form to request PAN correction or cancellation.
• Write a Letter to the Assessing Officer:
• Include your name, address, and the details of the PAN card(s) you wish to surrender.
• Specify which PAN card you want to retain and which one(s) you want to cancel.
• Submit to Jurisdictional Assessing Officer:
• Submit the letter or Form 49A to the Income Tax Assessing Officer of your jurisdiction.
• Make sure to get an acknowledgment copy of the letter as proof of cancellation.

Checking PAN Cancellation Status

To check the status of your PAN card cancellation request:

1. Visit the Income Tax e-Filing website: Navigate to the 'Know Your PAN/TAN/AO' section under Quick Links.
2. Enter Required Details: Input your name, date of birth, gender, and mobile number.
3. Submit and Validate OTP: An OTP will be sent to your registered mobile number. Enter the OTP and click Validate.
4. Check PAN Status: The current status of your PAN card will be displayed on the screen.

Reasons for PAN Card Cancellation

You may need to cancel a PAN card for various reasons:

• Multiple PAN Cards Issued: Mistakes during the application process can lead to the issuance of more than one PAN card.
• PAN Card Errors: Errors in the PAN card details, such as name or address, might require a cancellation if the PAN cannot be corrected.
• Relocation or Status Change: If you no longer require a PAN card due to relocation abroad or changes in legal status.
• Business Closure: If a company or firm has ceased operations and no longer needs the PAN.

FAQs on PAN Card Cancellation

1. What if I have multiple PAN cards issued by mistake?
   If you have multiple PAN cards, you must apply for cancellation of the additional PAN cards either online or offline. The Income Tax Department will verify and cancel the duplicates.
2. Can I cancel a PAN application and reapply for a new one?
   Once a PAN application is submitted, it cannot be canceled. However, if multiple PANs were issued mistakenly, you can apply to cancel the duplicates.
3. Is it necessary to cancel my PAN card if I move to a different city within India?
   No, PAN cards are valid across India. You do not need to cancel your PAN card if you are relocating within the country.
4. Should I cancel my PAN card if I am working abroad?
   No, you do not need to cancel your PAN card if you are temporarily working abroad. You may still need it for tax-related activities or financial transactions.
5. Is it mandatory for NRIs to hold PAN cards?
   NRIs do not need a PAN card unless they are involved in specific transactions that require it (e.g., purchasing property in India). In cases where a PAN card is required, NRIs can use Form 60 to be exempt from providing a PAN.
6. When should I consider canceling my PAN card?
   You should consider canceling your PAN card if:
   • You are permanently leaving the country.
   • You have multiple PAN cards due to an error.
   • There are significant errors in your PAN card that cannot be corrected.
   • Your business or firm has ceased operations.

Conclusion

Holding more than one PAN card can result in penalties of up to ₹10,000, as per Indian tax regulations. It is essential to cancel any duplicate PAN cards to avoid fines or legal consequences. Whether submitting your cancellation request online or offline, following the correct procedure will ensure that your PAN card details remain accurate and compliant with Indian tax laws.