How to Cancel PAN If you have more than one PAN, Deactivation of PAN: PAN deactivation by the Income Tax Department for circumstances where the taxpayer owns multiple PAN
Permanent Account Number (PAN) is a 10-digit alphanumeric identification code that contains the cardholder’s entire taxable financial Status. According to Income Tax regulatory requirements, each individual citizen can only have only one PAN number. The Income Tax Department has promptly cancelled more than 11 lakh duplicate and forged documents of PAN cards.
However, it is possible that an authentic and genuine PAN was permanently deactivated in some cases. Because the person owned more than one PAN, the PAN that the taxpayer was using for the e-filing of income tax returns was terminated in any particular circumstances.
You can reactivate your PAN card in such specific instances, but you will need to supply the appropriate documentation to officially confirm your request for PAN reactivation.
How to get the PAN Activated?
If somehow the IT Department permanently disables your PAN, you would be prohibited from making cash financial transactions in excess of 50,000. You would also be incapable of operating an e-Filing website or submit ITRs. There are also plenty of additional activities which will become relatively complex if your PAN card is automatically deleted.
The following steps will guide you through the process of reactivating your deactivated PAN.
- To begin, the taxpayer must issue a letter to the Income Tax Department’s jurisdiction AO essentially asking for the reactivation of their PAN.
- The taxpayer must always provide a self-attested photocopy of the deactivated PAN card with the letter written.
- The following documentation can be produced for the very same:
- Fill out the Indemnity Bond form in the name of the Income Tax Department.
- You can indeed simply submit Income Tax Returns for the previous three years initially submitted using the deactivated PAN.
The Income Tax Department tends to take roughly 15 business days (from the exact date of submission of the application form) to complete the PAN card renewal process.
Format of Indemnity Bond for Reactivation of PAN
The current format of the indemnity bond is as shown below.
Indemnity Bond – PAN
I, _____ (NAME OF THE APPLICANT) ______, R/o_____(NAME OF THE JURISDICTION) _________, do hereby solemnly affirm and declare as under:
My PAN is:
I am regularly assessed in your ward/jurisdiction with PAN: ______ (PAN number) _____.
I have only one PAN i.e., ______ (PAN number) _____ which is used for last many years for filing my income tax returns.
I do not have any other PAN with me; if any allotted in your records, kindly deactivate the same.
I undertake to indemnify the income Tax Department for any loss that may be caused in the future.
Kindly activate my PAN: _____ (PAN number) ____.
That the above statements are true to the best of my knowledge and belief.
(Signature of the applicant)
Verified at (place name) on this _____ day of (___month___),(____year____), that the contents of the above affidavit are true and correct to the best of my knowledge and belief. No part of it is false, and nothing material has been concealed therefrom.
(Signature of the applicant)
When does a Person Obtain More Than One PAN Number?
Keeping two PAN numbers is a serious crime under the Income Tax Act, and you might be fined heavily up to Rs 10,000. This penalty is legally enforced under Section 272B of the Income Tax Act and is aimed at preventing the use of multiple PANs.
Not everybody who has multiple or duplicate PAN cards has a criminal objective, and the great majority of them are generally unaware that they have multiple PANs.
Due to an administrative error, or if they successfully applied many times and obtained a PAN card every time, an individual or entity may have obtained duplicate PAN cards. Duplicates must be relinquished because it is prohibited by law to have more than one PAN card at a time.
Here are why some people ultimately end up having more than a single Permanent Account Number (PAN) card:
- When there are errors on an existing PAN card, many people, owing to the absence of knowledge and understanding, apply for a new PAN card instead of just requesting a rectification of the old PAN card.
- Applying for a PAN card repeatedly is another good reason people eventually wind up with more than one PAN card.
- While most females modify their surname after marriage, they generally tend to apply for a new PAN card instead of just requesting a surname adjustment on their current PAN card.
- Another reason why people end up with more than just one PAN card because NRIs who often visit the nation more often than not apply for a PAN card far too many times. Since there is an upper limit to the transaction that may be carried around without a PAN card, NRIs are compelled by law to obtain a PAN card if necessary to undertake a transaction that exceeds the legally permitted transaction limit.
- Further from the mentioned reasons above, people and companies may get several other PAN cards to evade the taxes levied on their revenues. Having numerous PAN cards essentially allows such persons to take full advantage of system flaws and launder money.
How can you Renounce or Deactivate a PAN Number if you Already have more than one PAN?
There are two primary ways to accomplish the same exact thing:
In the offline mode submit Form 49A for change/correction in PAN.
There are specific regulations and standards when completing Form 49A. The following are a few things to bear in mind whenever filling out the form.
- Form 49A can only really be filled out in English by the applicant. There is no available option to complete the form in a different language. It is also strictly necessary to fill out the form in block letters, particularly in black ink. Each box should be populated with a single character, with an empty box following each character.
- It is necessary to fill out the form and ensure that you have included all relevant documentation. Filling out the form probably incorrectly may lead to problems during processing and, in extreme circumstances, disqualification of the application.
- Form 49A should always be submitted for approval to any NSDL TIN facilitation office.
Particulars to be filled in the form:
- The applicant has to include the Area code, Accounts office type, Range code, and Accounts office number in the Assessing officer code segment.
- The full name section of the form is also where the individual explicitly mentions their marital status, first name, last name, and surname. In this area of the paper, the candidate must also abbreviate their name as it will appear on their PAN card.
- The applicant must clearly specify if they have ever been addressed by a name other than the one previously listed in the other name portion. If they do have another such name, the applicant must make sure to mention such as their old name’s first, last, and surname.
- Other details include:
- Date of birth
- Father’s name
- Residential Address
- Telephone number and email id
- Source of income
- Aadhaar Number
- The applicant must select either office or residential in the address of the communication field.
- The applicant must specify precisely whether they are an individual, a HUF member, a company, a partnership business, etc., under the Status of applicant category.
- The registration number denotes the registration number for a corporation, a firm, an LLP, and so on.
You can cancel numerous PAN cards in your username by completing the instructions detailed below:
- At first, the applicant must visit the official site of tin-nsdl.com or https://www.utiitsl.com/UTIITSL_SITE/site/pan/index.html and click on the PAN option available under the ‘Services’ drop-down menu.
- Then, below the PAN data field, they must click on ‘Apply’ under ‘Change/Correction.’
- They must choose ‘Changes or Corrections in Existing PAN Data/Reprint of PAN Card (No Changes in Existing PAN Data)’ under ‘Application type.’
- Following that, they must choose a category and slowly and carefully enter the information requested.
- They must then check the box at the end of the screen, accept the terms and conditions, provide the captcha code, and simply click ‘Submit.’
- The candidate must now click on ‘Continue with PAN Application Form’ and complete the necessary information.
- Then they’d have to provide the scanned photos of the essential certificates and make payment.
- Following that, the candidate must specify the exact PAN(s) they intended to renounce and upload the essential documents as confirmation of identity and residence.
- After pretty successfully uploading, customers must simply download the acknowledgement and submit it to NSDL e-Gov, together with two passport-sized photos.
How to Track the Status of a Pan Cancellation?
This may be done by following the methods outlined below:
- To begin, browse the website https://www.incometaxindiaefiling.gov.in/home.
- Then, users must select ‘Know Your PAN/TAN/AO under the Quick Links section.’
- Following that, they must fill in the necessary information, and an OTP is supplied to the phone number they made available before. After entering the OTP, they must click Submit.
- The Current Status of the PAN card in the individual’s name is prominently displayed on the following screen.