All tax paying individuals and entities are required to apply for a PAN card for the purpose of filing their Income Tax Returns. The Income Tax Department issues the PAN cards on behalf of the government of India. A PAN card is a unique 10 character number that is assigned to every tax payer, and only one can be assigned to a tax paying entity.
PAN cards are valid for the holder’s lifetime, meaning the PAN number assigned to the individual or entity will not change in case of theft/loss.
There are times when individuals or entities are required to surrender their PAN cards, for a number of reasons. The process for surrendering your PAN card depending on the reason for it is listed below.
Surrender of Duplicate PAN Card:
An individual or entity could have been issue with duplicate PAN cards due to an administrative error or if he applied multiple times and received a PAN card each time. As it is illegal to have more than one PAN card at a time, the duplicates have to be surrendered.
Surrendering a duplicate PAN card can be done both online as well as offline.
Online Process to Surrender Duplicate PAN card:
- Visit the Income Tax Department website and go to the ‘Surrender Duplicate PAN’ option.
- Enter the details of the duplicate PAN number/(s) and the PAN you wish to retain as well your personal details such as full name, date or birth (date of incorporation in case of companies) and contact details.
- Submit the form, whereupon you will be directed as to the further process.
Offline Process to Surrender Duplicate PAN card:
- Write a letter addressed to the Assessing Officer under whose jurisdiction your Income Tax is filed. Mention your personal details such as the full name on your PAN card, date of birth (or date of incorporation in case of companies), PAN card number to be retained and details of duplicate PAN card being surrendered.
- Post or hand over the letter to the nearest tax office and keep the acknowledgement received. The acknowledgment indicates the duplicate PAN cards have been cancelled by the Department.
- Alternatively, you could fill up Form 49A for Change or Correction in PAN and submit the form to the nearest UTI or NSDL TIN facilitation centre.
Tips to surrender additional PAN card and subsequent consequences
In case individuals have over one PAN card, they may penalised for the same as the government has mandated that PAN and Aadhaar cards will have to linked. As per Section 139A of Income Tax Act, 1961, an individual can hold only one PAN card. This section deals with PAN card eligibility.
As per Section 272B of the Income Tax Act, the income tax officer can impose a penalty of Rs.10,000 on an individual who has over one PAN card. However, in case individuals have more than one card, they can deactivate the extra card by visiting the NSDL online portal and fill the form for PAN correction. Once the form has been filled and payment made, individuals will receive an acknowledgement.
Additionally, individuals can do the same offline as well by submitting the PAN correction form at the closest NSDL collection centre and fill and letter with the jurisdictional Assessing Officer and pay for the same.
Surrender PAN Card due to Death of Individual Holder:
In the event of the demise of the PAN card holder, a letter addressed to the Income Tax Officer for that jurisdiction is to be written by the relatives of the deceased. The letter should mention the reason for the surrender (demise of the holder) as well as a copy of the deceased’s death certificate. The letter should also mention the PAN details such as PAN number, name, and date of birth.
This procedure can be used to surrender a PAN card upon death of Indian residents, NRIs (Non Resident Indians) as well as foreign nationals.
Surrender of Firm/Partnership/Company PAN Card
Online Process to Surrender Firm/Partnership/Company PAN Card
- If the firm/ partnership is being shut down or dissolved, the PAN card issued in the name of the firm has to be surrendered.
- The PAN card can be surrendered online by visiting the NSDL TIN website and filling out form 49A.
- Select the category from the drop down list and proceed with filling the form online.
- Enter the PAN number to be cancelled in item 11 of the form.
- Submit the form and print out the acknowledgement and send it along with the necessary documents to the NSDL office at the address mentioned on the form.
- You will receive a notification once the request has been processed.
Offline Process to Surrender Firm/Partnership/Company PAN Card
- Write a letter to the Income Tax Officer under whose jurisdiction the firm/company’s taxes were being filed and mention that the company is being dissolved, resulting in the PAN card being surrendered.
- Attach a copy of the deed that states the company is being dissolved, the PAN card as well as an acknowledgment of the return being filed for the discontinuation period.
- Submit the letter and documents to the Income Tax Officer and keep a copy of the acknowledgement received from the tax office.
Surrender of PAN in use:
While Indian citizens are not advised to surrender the PAN card they are using as it can be used as a valid document for identity proof, foreign nationals who are leaving the country and will not be paying tax have no use of a PAN card.
Such individuals can surrender their PAN card by writing a letter to the Income Tax Assessing Officer under whose jurisdiction they fall, mentioning the reason for the PAN surrender.
The PAN card will then be cancelled and the holder can surrender it to the tax official.