Cancellation of PAN Card

Did you know that individuals in India are allowed to have only one PAN Card in their lifetime? Therefore, if you have more than one PAN Card, it's advisable to cancel it soon. This applies even when you want to cancel the card for any other reason.

The cancellation of PAN Card is relatively easy and can be done through the official NSDL website. In this guide, we will discuss how to surrender PAN Card or cancelling a PAN Card in detail.

PAN Card cancellation form

You may fill out and submit the PAN change request application form by mentioning the card that you are currently using at the top of the form. All other PAN Cards inadvertently allotted to you should be mentioned at item no. 11 of the same form. Moreover, the corresponding PAN Card copy should also be submitted for cancellation of PAN Card along with the form.

If you are wondering how to cancel PAN Card, the process is simple. Use the "Request for New PAN Card or/and Changes or Correction in PAN Data" form, available for download from the official NSDL portal. On this form, provide the PAN you wish to cancel (in Item No. 11), state the reason for PAN Card cancellation online, and submit the form along with required documents at a PAN service centre or online via the NSDL website.

PAN Card cancellation online

You can follow the steps mentioned below for the cancellation of PAN Card online:

• Step 1: Go to the official NSDL website.
• Step 2: Click on the ‘Changes or Correction in existing PAN data/ Reprint of PAN Card’ application and select the respective category.
• Step 3: Fill in the details with correct information and submit them on the same page.
• Step 4: You will receive a unique token number via the email address you provided on the PAN Card correction form after it is submitted and a change request has been registered. Keep this token number for future reference.
• Step 5: Click on ‘Continue with PAN Application Form’.
• Step 6: Select the mode of document submission on the next page. Fill out your personal details and click on ‘Next’.
• Step 7: Select the check box in the left margin under the contact details in the PAN Card correction form. Then, mention the additional PANs that you want to surrender or cancel. Later, click on the ‘Next‘ button.
• Step 8: Upload your proof of identity, residence, date of birth, and a copy of your additional PAN, and submit.
• Step 9: Complete the declaration provided at the end and submit it.
• Step 10: An authorised signatory must sign the PAN Card form if it is to be surrendered, which is issued in the name of a particular company or a partnership firm.
• Step 11: You will then be redirected to the payment page. You can easily make the payment using a credit/debit card, a demand draft, or internet banking.
• Step 12: You will receive an acknowledgement slip upon successful payment. If you want to send the PAN Card application documents physically, take a printout of the application. Then, affix a photograph, sign it, and send it along with the required proof of documents to the address below:

Income Tax PAN Services Unit,

Protean eGov Technologies Limited,

4th Floor, Sapphire Chambers,

Baner Road, Baner, Pune - 411045

Do not forget to write ‘Application for PAN Change’ on top of the envelope along with your application number.

PAN Card cancellation offline

There are two specific methods to follow if you want to learn how to close PAN Card offline. Here’s an overview:

Method 1:

• Visit your nearest PAN centre and collect the ‘Request for a New PAN Card and/or PAN Card correction’ Form. Alternatively, you can also download it from the official Income Tax Department website.
• Fill out the form with the required details. Then, mention the PAN number you want to surrender under item number 11 of the form.
• Submit the filled-out form at your nearest PAN centre along with your proof of identity, date of birth, address documents, and the card that you specifically want to surrender.
• You will receive an acknowledgement slip upon successful submission of the form.

Method 2:

Write a letter to surrender PAN online. Send the letter to the area’s immediate assessing officer to inform them about the cancellation of PAN Card. The letter should contain the correct details of the PAN Card holder and mention the reason for the surrender.

Here is a list of additional details that you have to provide along with the surrender letter:

• Name: Should be the same as it appears on the PAN Card.
• Address: Correct and valid residential address of the cardholder.
• Information about the PAN Cards: Clear details of the cards issued to you, as well as the ones you wish to surrender or cancel.

How to check PAN Card cancellation status?

Knowing how to cancel PAN Card online or offline isn’t enough. You must also learn how to check the status of your application, as mentioned below:

• Step 1: Visit the Income Tax e-filing website.
• Step 2: Select ‘Verify PAN Status’ under the ‘Quick Links’ section.
• Step 3: Enter the PAN number, date of birth, your name, mobile number, and click ‘Continue’.
• Step 4: Enter the OTP sent to your mobile number and click on ‘Validate’.
• Step 5: You can see the status of your PAN Card on the screen.

Reasons for the cancellation of the PAN

There are a few common reasons why a PAN Card may need to be cancelled. Some such reasons for PAN Card cancellation are as follows:

• Multiple PANs issued: Due to administrative or even human errors, the Income Tax Department may issue multiple PAN numbers to an individual who is originally a single taxpayer. In some cases, a person may also apply for a PAN more than once, resulting in multiple PAN allocations.
• Incorrect information: The issued PAN Card contains erroneous details in a few other details, such as an inaccurate date of birth or a misspelt name. In such cases, the person must cancel the existing PAN Card and apply for a new one with accurate information.

Consequences of non-cancellation of additional PAN Card

According to the Income-tax Act, no person in India is permitted to hold more than one PAN Card. As per Section 272B of the Income Tax Act, an income tax officer can levy a penalty of up to ₹10,000 on a person for having more than one PAN Card.

If a person has two or more PAN Cards, they must apply for the surrender of all these cards except the one that is originally in use. An individual can link only one PAN number with their Aadhaar card and ensure that they use only that PAN for all financial transactions.

Conclusion

All taxpayers in India are required to have only one PAN Card. Holding more than one PAN number can attract a penalty under the Income-tax Act. Thus, in such cases, you must apply for cancellation or surrender of your PAN Card. You can apply for the cancellation of your PAN Card either online or offline, based on your preferences.

Also Read: Link your PAN with Aadhaar before 30 June

Frequently Asked Questions

What is the payment procedure for cancelling a PAN Card?

The payment procedure for cancelling a PAN Card involves submitting the cancellation form, either online or offline, and paying the associated fee. Payment can be made using a debit card, a credit card, net banking, or a demand draft. After successful payment, an acknowledgement receipt is issued, which should be printed and sent along with the necessary documents to NSDL e-Governance Infrastructure Limited for processing. The payment confirms that the cancellation request has been initiated, and keeping the receipt safe helps track the status.

How to deactivate a PAN Card?

For income tax PAN Card deactivation, apply online or offline via NSDL or the Income Tax Department. Fill Form 49A with the PAN details, state the reason for PAN Card deactivation procedure (e.g., multiple PANs), and pay the fee online. After submission, you’ll receive an acknowledgement slip for tracking purposes. The application status can be checked online using this number.

What happens if I have two PAN Cards?

If you have two PAN Cards, it is illegal under the Income Tax Act and can lead to a penalty of ₹10,000 under Section 272B. Having multiple PAN Cards may lead to legal complications, tax evasion charges, and issues with financial transactions, such as filing tax returns or opening bank accounts. It can also negatively affect your credit profile and lead to increased scrutiny by tax authorities. So, you can apply for duplicate PAN Card cancellation and cancel one card.

Is there any charge for surrendering a PAN Card?

There is no specific charge for surrendering or cancelling a PAN Card itself. You only need to pay the applicable fee for service processing if you apply online or offline; however, the PAN Card surrender process or application does not incur a penalty or extra fee. The government provides this service to ensure proper management of PAN Cards without additional cost for cancellations.

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