- Surrendering or Cancelling PAN
- Ownership of PAN Card\
- Surrendering a Duplicate PAN Card Procedure
- Tips on Surrendering a Duplicate or Supplementary PAN Card, as well as Implications
The Income Tax Department issues a Permanent Account Number to each taxpayer in India on the directions of the Central Board of Direct Taxes (CBDT). It’s a ten-digit alphanumeric number that’s required for every financial transaction a person has ever made. Anyone can get a PAN by filling out Form 49A or Form 49 AA. The primary goal of a PAN is to track all of the PAN holder’s taxable financial transactions. A person’s PAN does not change with their address.
Anyone eligible to pay taxes in India, including foreign nationals, can register for a PAN. Businesses with a total turnover, sales, or gross receipt of more than 5 lakh in the previous fiscal year must apply for a PAN. PAN numbers are used to pay direct taxes, file tax returns, and avoid excessive tax deductions.
Having more than one PAN card is illegal, according to the Income Tax Act. PAN is also used as an identity card and is extremely vital to Indian citizens. Its uses aren’t restricted to tax and investment planning.
However, it is critical to remember that Indian citizens can only have one PAN card in their name. Having multiple PANs is a criminal offence that can result in legal issues and a fine of 10,000 INR under section 272 B of the Income Tax Act. 1961
Due to repeated applications, some people are given two PAN cards. If individuals have been assigned two PAN cards, they must submit them willingly to prevent any penalties. Individuals have two options for submitting a surrender application:
- Individuals holding two PAN cards can go online to the Income Tax Department’s website (http://incometax.sparshindia.com/pan/newPAN.asp) and click on the Surrender Pan button to surrender their PAN cards.
- Individuals can also locate an “Online Pan Cancellation Form,” which can be filled out and submitted online by anyone who wishes to cancel or surrender their PAN card.
- The person must provide all pertinent information about the PAN they desire to revoke or surrender.
- Individuals can also revoke or surrender their PAN cards online using NSDL TIN Facilitation Centers or UTI PAN Centres. They must complete the “Change in PAN data” application form. The individual can insert the details of a spare or duplicate PAN card in the form’s last row.
- Within a month, the individual will receive confirmation of the Cancellation or Surrender’s acceptance.
Surrendering by Hand
The person must go to the local assessment officer. Individuals can submit personal information and information on the PAN card they wish to surrender through letter or by visiting a local NSDL TIN Facilitation Center or UTI PAN Center. The acknowledgement copy must be kept secure by the individual.
Surrender a Deceased Person’s PAN Card
When a PAN cardholder dies, their relatives must write a letter to the Income Tax Officer of the relevant jurisdiction, stating the reason for surrender (i.e. the holder’s death) and attaching the death certificate.
A few additional facts, such as the name, PAN card number, and date of birth, must also be included in the letter. The procedure for surrendering a PAN card is the same for Indian citizens, NRIs, and foreign nationals.
- A person can only have one PAN card, according to Section 139A of the Income Tax Act of 1961. Individuals with more than one PAN card may face penalties, as the government has ordered that PAN and Aadhaar cards be connected. The eligibility for a PAN card is discussed in this section.
- An income tax officer can levy a penalty of Rs.10,000 on an individual who has more than one PAN card under Section 272B of the Income Tax Act. Individuals with more than one card can deactivate the excess card by going to the NSDL website and filling out the PAN rectification form.
- Individuals can also do it offline by submitting a PAN rectification form to the nearest NSDL collection centre, filling out a letter with the jurisdictional Assessing Officer, and paying for it. Individuals will receive an acknowledgement once the form has been completed and payment has been paid.
As a result, an individual mustn’t obtain two PAN numbers or Cards. If a person possesses two numbers, he must relinquish one of them to the Internal Revenue Service to avoid being prosecuted. It’s also crucial to maintain the IT department’s acknowledgement letter. This is useful if the PAN gets corrupted by someone; the acknowledgement copy can save you time and money.