Permanent account number or PAN (10-digit alphanumeric) allotted by the income tax department under the overall supervision of the Central Board of Direct Taxes acts as an identity proof for all taxpayers and has to be mandatorily quoted in all financial transactions.
How to Cancel PAN Card
A PAN card can be cancelled by either of the two methods as listed below:
Method of Cancellation of a PAN Card Online
- An assessee should log on to the official website of the income tax department at http://incometax.sparshindia.com/pan/newPAN.asp and fill in the required details after reading the instructions provided for completing the online form.
- Alternatively, an assessee can fill out the ‘PAN Change Request’ application form. The PAN currently in use has to be mentioned on the top of the form. The additional PANs allotted should be listed in item no. 11 while the PAN card which has to be cancelled should be submitted along with the form.
Method of Cancellation of a PAN Card Offline
- An assessee should fill out form 49A for any making any corrections in his or her the PAN card. Form no.49A should be submitted at any NSDL TIN facilitation center
- An assessee can also write a letter to the assessing officer of the concerned jurisdiction and list out all pertinent details as listed below:
- Address of the assessee
- Name of the assessee
- Details of additional PAN card which has to be surrendered
Specific details of the PAN card which has to be retained
It is important to note that the assessee needs to have an acknowledgement copy of the letter. The acknowledge letter from the income tax department per se acts as proof that the additional PAN has been cancelled. In other words, the assessee does not have to contact the income tax department again for confirmation on cancellation of his duplicate or additional PAN.
Reasons for cancellation or surrender of a PAN card
An assessee with more than one PAN card has to surrender his or her additional PAN as holding more an additional PAN card will attract a penalty of Rs.10,000.
An assessee may choose to cancel a PAN card for the following reasons:
- Multiple PANs issued inadvertently by the income tax department
- In many cases, multiple PAN cards can be allotted to one assessee for the following reasons:
- An assessee can apply multiple times for a PAN card. Consequently, multiple PANs are issued against his name by the income tax department
- In some cases, the NSDL or the income tax department can mistakenly allot multiple PAN cards to one assessee