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Know when and how to surrender your PAN card, especially in case of duplication. Follow the correct procedure to avoid legal and financial issues.
5 May 2024
Afinthrive Advisory
PAN (Permanent Account Number) is a unique identifier issued by the Income Tax Department of India. However, there are situations where a PAN card may no longer be required. For example, if a person has multiple PAN cards or if the cardholder’s status has changed, they may need to surrender their PAN card.
Surrendering a PAN card is a straightforward process that involves submitting an application to the Income Tax Department to voluntarily cancel the PAN. This is an essential step to avoid any future misuse of the PAN and to comply with the tax regulations.
In India, it is mandatory to surrender any additional or duplicate PAN cards. Holding more than one PAN card is illegal, and failing to surrender the extra cards can lead to penalties.
Common Reasons for PAN Card Surrender:
The PAN surrender process is fairly simple. First, the taxpayer must fill out the form for PAN card surrender on the official Income Tax Department website. After submitting the form, the cardholder will be required to send the physical PAN card (in case of cancellation of a duplicate) to the designated address. Once the application is processed, the PAN will be cancelled, and a confirmation letter will be sent to the applicant.
How Afinthrive Advisory Can Assist:
Afinthrive Advisory can help you navigate the PAN surrender process smoothly. Whether it’s canceling duplicate PAN cards or addressing changes in your status, our team will handle the paperwork, submit the necessary forms, and ensure everything is done correctly for you.
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Understand when and how to surrender your PAN card without hassle
Closure of business, death of a PAN cardholder, or duplication of PAN due to clerical errors
Common Reasons to Surrender
Submit your PAN card, a copy of the reason for surrender, and government-issued ID proof
Documents Required
Fill out Form 49A (for individual cases) or 49B (for others) online via the NSDL portal or physically at a TIN-FC
Process Overview
Typically, surrender takes 15–20 working days. Check online status using your acknowledgment receipt
Timeline for Completion
Ensure that the surrender is reflected in your tax records (Form 26AS). Retain the acknowledgment for future reference
After Surrender
Failure to surrender unused or canceled PAN can cause complications in future tax filings and penalties
What If You Don’t Surrender?
When and How to Surrender Your PAN Card Correctly
PAN card surrender is necessary when an individual or entity has more than one PAN, or if a PAN is mistakenly issued or belongs to a non-existent person. It ensures that records are updated and tax filings remain compliant.
• Duplicate PAN cards issued under the same name or for different variations of the name. • PAN card issued for a non-existent or deceased individual. • PAN associated with a now-defunct business or entity.
1. Fill out the PAN card surrender form available on the NSDL website. 2. Provide necessary supporting documents like proof of duplicate issuance or proof of death. 3. Submit the form and documents online or at a local PAN service center. 4. Receive an acknowledgment and surrender certificate.
The surrender process typically takes 15–20 days from the submission of your application. Afterward, you’ll receive a confirmation from the Income Tax Department that the PAN has been deactivated.
• Failing to mention the exact reason for surrender could delay processing. • Incomplete documents like proof of duplicate PAN or death certificate can cause delays. • Ensure you don't surrender the active PAN by mistake.
Once the PAN is surrendered and deactivated, the individual or business is no longer legally bound to file returns under the surrendered PAN. Any filings done using the surrendered PAN are invalid, and a fresh PAN may need to be applied if required for future dealings.
If you're unsure about the process, your CA or tax consultant can help guide you through the PAN surrender process to ensure it's done correctly without missing any crucial steps.
Here is the check list of documents required.
Get Answers to your most asked questions.
PAN Card Surrender refers to the formal process of requesting the Income Tax Department to cancel your PAN (Permanent Account Number) due to various reasons such as duplication, migration to a new PAN, or the cessation of business operations.
You should surrender your PAN if it is no longer required, such as if you have multiple PANs, or you have ceased to engage in activities where PAN is necessary. Individuals, businesses, or entities that no longer require PAN can apply for surrender.
Common reasons include: - Having multiple PAN cards issued (under section 139A of the Income Tax Act) - Change of business structure (such as merging or closing a business) - Individuals no longer required to file tax returns
Yes, PAN card surrender can be requested online through the NSDL or UTIITSL portals. The process is straightforward and involves filling out a surrender request form, which can be done electronically.
No, there is no fee for the surrender of PAN. The process is free of charge, and no payment is required.
The process for surrendering a PAN card is as follows: 1. Visit the official NSDL or UTIITSL website. 2. Select the option to 'Surrender PAN' under the PAN services. 3. Fill out the form with the required details such as PAN number, reason for surrender, and other personal information. 4. Submit the form electronically and print the acknowledgment. 5. Optionally, you may be asked to submit a physical copy of the request form along with relevant documents to the respective office.
The processing time for PAN surrender requests is typically around 15–20 business days. After the application is processed, the PAN status will be updated to 'inactive' in the Income Tax Department records.
Once your PAN card has been surrendered, it is marked as 'inactive.' You cannot use it for filing tax returns, making financial transactions, or any other activity that requires a valid PAN.
Yes, if you need a new PAN card, you can apply for one through the standard process. The surrendered PAN number will be deactivated, and you will be issued a new PAN if necessary.
Yes, you are required to return the physical PAN card to the Income Tax Department as part of the surrender process. This can either be done online or by sending the original PAN card to the designated office.
Failing to surrender an unused or duplicate PAN may lead to penalties under Section 272B of the Income Tax Act. The Income Tax Department may also take action if it identifies you are holding multiple PANs.
