How to Surrender or Cancel Your PAN Card?

A PAN (Permanent Account Number) is a distinctive 10-digit alphanumeric identifier assigned to each taxpayer. However, individuals are permitted to possess only one PAN for their entire lifetime. Holding more than one PAN Card is prohibited by the government. In such cases, there are specific procedures available for surrendering or cancelling the PAN Card. Let's explore both the online and offline processes for this purpose.

Table of Content

• Reasons for Surrendering PAN Card
• How to apply for PAN Cancellation?
• How to Surrender a Duplicate PAN Card - Online?
• How to Surrender a Duplicate PAN Card - Offline?
• Surrender or Cancellation of Active PAN Card

Holding multiple PAN Cards can result in severe consequences for an individual, including substantial penalties or even imprisonment. The Indian government has mandated linking Aadhaar with PAN Cards, which has necessitated that individuals and business entities holding more than one PAN Card surrender or cancel their additional cards. This requirement aims to ensure each person or entity maintains only one valid PAN, aligning with the government's efforts to streamline financial identification and prevent potential misuse. If you're wondering how to cancel a PAN Card, read this detailed guide. 

Reasons for Surrendering PAN Card

• The individual is moving abroad permanently.
• The Income Tax Department mistakenly issued two PAN Cards to an individual.
• The current PAN Card of the individual contains errors.
• Upon the death of an individual, family members can request the Income Tax Department to cancel the PAN Card.
• In the event of dissolution of a company, LLP, or partnership firm, authorised personnel can request cancellation of the entity's PAN Card.

How to apply for PAN Cancellation?

Online Cancellation

While applying for the PAN Card surrender process online, the assessee must log on to the official Income Tax Department of India website and complete an online form with the necessary details, following the provided instructions. If an individual has been mistakenly issued two PAN Cards, they can cancel one by filling out the 'PAN Change Request' form. In this case, the PAN Card in use should be listed at the top of the form, and the additional one should be specified in the relevant section. The PAN Card to be cancelled must be submitted along with the cancellation form.

Offline Cancellation

An individual can apply for PAN cancellation by writing a letter with all necessary details and submitting it to the office of the assessing officer of the relevant jurisdiction.If the assessee wishes to cancel duplicate PAN Cards, the letter should contain details of both the PAN Card to be cancelled and the one to be kept. It is essential to retain a copy of the acknowledgment letter from the IT Department, as it will act as proof that the additional PAN has been submitted.

How to Surrender a Duplicate PAN Card - Online?

Here are the steps to surrender a PAN Card online.

Step 1: Visit the Income Tax Department website and navigate to the 'Surrender Duplicate PAN' option.

Step 2: Enter the details of the duplicate PAN number(s) and specify the PAN you wish to retain. Provide your personal information including full name, date of birth (date of incorporation for companies), and contact details.

Step 3: Submit the form of surrender PAN Card online and follow the instructions provided for further processing.

Suggested Read: Duplicate Pan Card - Apply For Your Lost Pan Card Online

How to Surrender a Duplicate PAN Card - Offline?

Step 1: Draft a letter addressed to the Assessing Officer of your jurisdiction where Income Tax is filed. Include personal details such as full name as per PAN Card, date of birth (or date of incorporation for companies), PAN Card number to be retained, and details of the duplicate PAN Card being surrendered.

Step 2: Submit the letter in person or by post to the nearest tax office. Retain the acknowledgement received as proof of cancellation of the duplicate PAN Cards by the Department.

Step 3: Alternatively, you can fill out Form 49A for Change or Correction in PAN and submit it at the nearest UTI or Protean eGov Technologies Limited TIN facilitation centre.

Surrender or Cancellation of Active PAN Card

It is advisable not to surrender the PAN Card currently in use as it serves as a valid identity proof essential for tax filing and various financial transactions. However, for foreign nationals leaving India and no longer liable to pay taxes to the Indian Government, surrendering the PAN Card becomes necessary. These individuals should write a letter to the Income Tax assessing officer in their jurisdiction explaining the reason for surrendering the PAN Card. They need to provide personal details such as name, nationality, PAN number, permanent address, etc. Once the PAN Card is cancelled, they should surrender the physical copy to the tax office.

Every taxpayer is required to possess a PAN Card, but it's crucial to maintain only one PAN number per individual. Possessing multiple PAN numbers can result in penalties. Therefore, individuals in such situations should apply for the online/offline PAN Card cancellation or surrender.