A PAN (Permanent Account Number) card is a 10-digit alphanumeric identifier issued to taxpayers in India. It plays a vital role in tax-related processes by uniquely identifying individuals and entities. Each person is allowed to hold only one PAN card during their lifetime. If someone possesses multiple PAN cards or needs to surrender their PAN due to reasons like death, relocation, or business closure, they must follow the official procedure to surrender the extra or unnecessary PAN card.
If you’re wondering, “How do I surrender my PAN card?” this guide will explain the reasons for surrendering a PAN card, the steps involved, and the implications of not doing so.
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Reasons for PAN Card Surrender
There are several situations when an individual or entity may need to surrender their PAN card, including:
Holding Multiple PAN Cards: It is illegal to possess more than one PAN card in India. Duplicate cards, whether obtained accidentally or due to administrative errors, must be surrendered to avoid legal penalties.
Death of the PAN Cardholder: In the event of a cardholder’s death, family members or legal heirs must surrender the PAN card to prevent misuse and to ensure cancellation of the PAN.
Closure of Business Entities: If a firm, partnership, or company is dissolved, its PAN card must be surrendered to the Income Tax Department to update records and close tax liabilities.
Cancellation or Invalidity: PAN cards issued erroneously—for example, to ineligible individuals or non-existent entities—must be cancelled and surrendered.
Permanent Relocation Outside India: Individuals relocating abroad permanently and no longer liable for Indian taxes should surrender their PAN cards.
Errors in PAN Card Details: If there are mistakes in the PAN card, such as incorrect name or date of birth, the cardholder may need to surrender the incorrect card and apply for a corrected one
Consequences of Holding Multiple PAN Cards
Under Section 139A of the Income Tax Act, 1961, possessing more than one PAN card is illegal and attracts penalties. Key consequences include:
Penalty for Multiple PAN Cards: As per Section 272B, holding multiple PAN cards can result in fines up to ₹10,000.
Aadhaar-PAN Linking Issues: Linking PAN with Aadhaar is mandatory for tax compliance, but only one PAN card can be linked to a single Aadhaar number. Multiple PANs create complications, requiring the surrender or cancellation of extra cards.
Financial Transaction Problems: PAN is essential for various financial activities like opening bank accounts, filing tax returns, making investments, and transactions above ₹50,000. Multiple PAN cards can cause confusion and disrupt these processes.
Incorrect Taxation and Record-Keeping: Multiple PANs can cause discrepancies in tax filings and financial records, potentially leading the government to suspect tax evasion
How to Surrender PAN Card for Individuals
Individuals can surrender their PAN card either online or offline. The process is straightforward when you follow the correct steps.
Online PAN Card Surrender
If you have a duplicate PAN card, you can surrender it online through the Income Tax Department or NSDL websites.
Steps to surrender PAN card online via Income Tax Department:
Visit the official Income Tax Department website and select the “Surrender Duplicate PAN” option.
Fill in your details, including the PAN you wish to retain, your name, date of birth, and contact information.
Submit the form by following the on-screen instructions.
Using NSDL for PAN surrender:
Go to the NSDL website and navigate to the ‘PAN Change Request Online Form’ page.
Select Application Type: Choose “Changes or Correction in Existing PAN Data/Reprint of PAN Card.”
Fill out the form with details such as citizenship, category, title, and other personal information, then submit.
Note the token number sent to your email for future reference. Click “Continue with PAN Application Form.”
Choose submission method: Aadhaar-based e-KYC/e-Sign, Digital Signature Certificate, or physical submission.
Complete all required fields, select the PAN(s) you want to surrender, and upload necessary documents like proof of identity, residence, date of birth, photo, and signature.
Review your application carefully, make any corrections, and proceed to payment via demand draft, credit/debit card, or net banking.
Download the acknowledgement once payment is successful.
If you opt for physical submission:
Print and sign the acknowledgement.
Attach photographs and label the envelope.
Mail it to:
NSDL e-Gov, Income Tax PAN Services Unit, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016.
Note: Submit all documents, including the signed acknowledgement and demand draft (if applicable), within 15 days.
Offline PAN Card Surrender
You can also surrender your PAN card by submitting the necessary forms and documents in person.
Fill out the form titled “Request For New PAN Card Or/And Changes Or Correction in PAN Data.”
Visit your nearest NSDL collection centre with the completed form and supporting documents.
Receive an acknowledgement slip after submission.
Send the acknowledgement slip to NSDL within 15 days.
Write a surrender letter addressed to your Income Tax Assessing Officer explaining the duplicate PAN card issue and requesting its cancellation. You may also attach an affidavit confirming you hold only one PAN.
Submit the letter in person to your local Assessing Officer.
Keep the acknowledgement number for your records
PAN Card Surrender Process for a Deceased Person
When a PAN cardholder passes away, their family members or legal heirs can request the cancellation or surrender of the deceased’s PAN card. Follow these steps:
Write a Letter: Address a letter to the Income Tax Officer of the jurisdiction where the deceased’s PAN card was registered. Clearly state the reason for surrender—i.e., the death of the cardholder.
Include Required Details: Provide the deceased’s full name, PAN number, date of birth, and other relevant personal details in the letter.
Attach Death Certificate: Include a certified copy of the death certificate along with the letter.
Applicability: This procedure applies equally to Indian residents, Non-Resident Indians (NRIs), and foreign nationals
How to Surrender PAN Card of a Firm, Partnership Firm, or Company
When a business entity such as a firm, partnership, or company is dissolved or closed, its PAN card must be surrendered to the Income Tax Department.
Online PAN Card Surrender Process for Firms or Companies
Visit the NSDL Website: Access the official NSDL portal.
Select Application Type: Choose “Changes or Correction in Existing PAN Data/Reprint of PAN Card.”
Enter PAN Details: Fill out the form, and under “Mention other Permanent Account Numbers (PANs), if any, inadvertently allotted to you,” enter the PAN number to be cancelled.
Review and Make Payment: Verify the information and proceed to payment via credit/debit card or net banking.
Print Acknowledgement: Download and print the acknowledgement receipt after submission.
Prepare Supporting Documents: Gather the acknowledgement receipt, a copy of the PAN card to be surrendered, the dissolution deed (if applicable), and a cover letter stating the intention to surrender the PAN card.
Mail Documents: Send these documents to:
NSDL e-Gov Income Tax PAN Services Unit, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016.Wait for Confirmation: You will receive a notification once your request is processed.
Offline PAN Card Surrender Process for Firms or Companies
Compose a Letter: Write to the Income Tax Officer of the jurisdiction where the firm or company filed its taxes. Explain that the business has been dissolved and the PAN card needs to be surrendered.
Attach Documents: Include a copy of the dissolution deed, the PAN card to be surrendered, and the acknowledgement receipt of the last filed tax return indicating the closure of the entity.
Submit the Documents: Deliver the letter and supporting documents to the concerned Income Tax Officer in person or by post.
Obtain Acknowledgement: Request and keep the acknowledgement receipt as proof of submission
Procedure to Surrender a PAN Card in Use
Generally, it is not recommended to surrender an active PAN card as it serves as valid identity proof and is essential for filing taxes and conducting financial transactions. However, foreign nationals who permanently leave India and will no longer be subject to Indian taxes may choose to surrender their PAN card. The process is as follows:
Write a Letter to the Income Tax Officer: Submit a surrender request letter to the Income Tax Officer in your jurisdiction, clearly stating the reason for surrender—typically, leaving India and no longer being liable for Indian taxes.
Include Personal Details: The letter should mention your full name, nationality, PAN number, and permanent address.
Submit the PAN Card: Once the PAN card is cancelled, you may be required to physically surrender the card to the tax office.
How to Check Your PAN Card Surrender Status
After submitting your surrender application, you can track its status by following these steps:
Visit the official Income Tax E-Filing Website.
Under ‘Quick Links,’ select ‘Verify PAN Status.’
Enter your PAN number, name, date of birth, and mobile number, then click ‘Continue.’
Enter the OTP sent to your mobile and click ‘Validate.’
The current status of your PAN surrender request will be displayed
Important Points to Remember Before Surrendering Your PAN Card
Reason for Surrender: Be clear about your reason (e.g., holding multiple PAN cards, death of the cardholder, business closure).
Required Documents: Ensure you have all necessary documents including the PAN card to be surrendered, proof of identity, date of birth, and other relevant papers.
Mode of Submission: Decide whether to surrender the PAN card online or offline based on your convenience.
Acknowledgement Receipt: Always obtain an acknowledgement receipt, especially for offline submissions.
Notify Financial Institutions: Inform banks and other relevant entities about the PAN card cancellation after surrender.
Consequences of Not Surrendering a PAN Card
Penalties: Holding multiple PAN cards can lead to fines up to ₹10,000 under Section 272B of the Income Tax Act.
Tax Filing Confusion: Multiple PAN cards may cause discrepancies and confusion in tax records.
Risk of Fraud: Unreturned PAN cards can be misused for fraudulent activities, such as opening bank accounts or obtaining loans in someone else’s name.
About the Author
Rohit
Rohit is a talented writer known for breaking down complex legal concepts into straightforward, practical insights. Her work equips entrepreneurs with the crucial legal knowledge they need to confidently launch and run their businesses with clarity and ease.
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