Pan Card
by 5paisa Research Team Last Updated: 2023-05-30T16:55:09+05:30
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PAN card, which stands for Permanent Account Number card, is a unique 10-digit alphanumeric identifier issued by the Indian government to individuals, companies, and other entities. It is a vital document used for various financial transactions in India, such as filing tax returns, opening a bank account, and investing in securities. A PAN card also serves as proof of identity and is often required in official documentation.

While obtaining a PAN card is essential, there are situations where one may need to cancel a PAN card. This could be due to various reasons such as duplicate issuance, incorrect information, or loss of the card. Canceling a PAN card ensures that the card is no longer valid and cannot be used for any financial transactions or as proof of identity.

In this article, we will discuss the steps involved in PAN card cancellation online, including the documents required and the process to be followed.
 

PAN Card Cancellation Online

The possession of multiple PAN cards can lead to severe consequences, such as hefty fines and even imprisonment. The Indian government has made it mandatory to link Aadhaar with PAN, which has compelled individuals and businesses with multiple PAN cards to cancel or surrender the additional cards. As a result, those with more than one PAN card are now seeking ways to eliminate duplicates.

Reasons for PAN Card Cancellation

There are several reasons why an individual or business entity may choose to cancel their PAN card. Some of the most common reasons are outlined below.

Duplicate Issuance

One of the most common reasons for PAN card cancellation is the issuance of multiple PAN cards. Individuals may accidentally apply for multiple PAN cards or may be issued a new card when their existing card is lost or damaged. Holding multiple PAN cards is illegal and can lead to severe penalties.

Incorrect Information

In some cases, individuals may need to cancel their PAN card due to incorrect or outdated information. This may include incorrect spelling of the name, incorrect date of birth, or incorrect address. It is important to ensure that all information on the PAN card is accurate, as incorrect information can lead to issues with financial transactions.

Loss or Theft

Another reason for PAN card cancellation is the loss or theft of the card. If a PAN card is lost or stolen, it is important to cancel the card as soon as possible to prevent unauthorized use.

Death of the Holder

In the event of the death of the PAN cardholder, their legal heirs or representatives may choose to cancel the PAN card.

Migration to Another Country

If an individual migrates to another country, they may choose to cancel their PAN card. This is because PAN cards are only required for financial transactions within India.

Reaching Duplicate Threshold

With the mandatory linking of Aadhaar and PAN, individuals and entities were given a deadline to surrender their additional PAN cards. Those who failed to do so were given an opportunity to retain one PAN card, while the rest were to be canceled. Failure to comply with this directive can result in a heavy fine or even imprisonment.

Pan Card Cancellation Application Form Online

Getting a PAN card cancellation application form online is a simple process. The form can be obtained from the official website of the Income Tax Department of India. The following steps outline the process of obtaining a PAN card cancellation application form online:

●    Step 1: Visit the official website of the Income Tax Department of India. 
    Step 2: On the homepage, click on the "Forms" tab.
●    Step 3: Under the "Forms" tab, select the "PAN" option from the drop-down menu.
●    Step 4: Next, select the option for the PAN card cancellation application form (Form 49A) from the list of available forms.
●    Step 5: Click on the "Download" button next to the form to download the form in PDF format.
●    Step 6: Once the form is downloaded, take a printout of the form.
●    Step 7: Fill out the form with the required details, such as your PAN card number, name, date of birth, and contact information.
    Step 8: Provide the reason for the cancellation of your PAN card, such as duplicate issuance or incorrect information.
●    Step 9: Attach a scanned copy of your PAN card as proof of identity.
●    Step 10: Attach a scanned copy of any other relevant documents, such as a passport or driving license.
●    Step 11: Once the form is completed, sign the form and send it to the address mentioned on the form.

It is important to note that the cancelation of PAN card does not mean that the PAN number is canceled. The PAN number remains the same and can be used to apply for a new PAN card if required. 
 

How to Cancel a PAN Card?

Here is a step-by-step guide on how to cancel a PAN card:

Obtain the PAN card cancellation application form

The application form can be downloaded from the official website of the Income Tax Department of India.

Fill out the application form
Fill out the application form with the required details, such as your PAN card number, name, date of birth, and contact information. Provide the reason for the cancellation of your PAN card, such as duplicate issuance or incorrect information.

Attach necessary documents

Attach a scanned copy of your PAN card as proof of identity. Also, attach a scanned copy of any other relevant documents, such as a passport or driving license.

Sign the application form

Once the form is completed, sign the form.

Submit the application form

Submit the application form to the nearest NSDL or UTIITSL office. The application form can be submitted in person or by post.

Receive acknowledgment receipt

After submitting the application form, you will receive an acknowledgment receipt. Keep the receipt safe, as it will be used to track the status of your PAN card cancellation.

Wait for the cancellation of your PAN card

The process of canceling a PAN card usually takes around 10-15 working days. Once the cancellation process is complete, you will receive a confirmation letter. 


Alternatively, a PAN card can also be canceled by submitting the application form to the nearest PAN card center or office.

Here are the steps to follow for the same:

●    Step 1: Visit the nearest PAN card center and obtain the PAN card cancellation form (Form 49A) or download it from the NSDL website.
●    Step 2: Fill the form with accurate details and ensure that all required fields are filled.
●    Step 3: Attach a copy of the existing PAN card along with the form.
●    Step 4: Submit the application form and the attached documents to the nearest PAN card center or office.
●    Step 5: Pay the fee of Rs.110 through Demand Draft (DD) in favor of "NSDL - PAN" payable at Mumbai.
●    Step 6: Once the PAN cancellation request is processed, an acknowledgment receipt will be issued by the concerned authority.
 

How To Check Pan Cancellation Status

Checking the status of PAN card cancellation can be done through the official website of the Income Tax Department of India. Here is a step-by-step guide on how to check the PAN card cancellation status:

●    Step 1: Visit the official website of the Income Tax Department of India.
●    Step 2: On the homepage, click on the "Services" tab.
●    Step 3: Under the "Services" tab, select the "Know Status of PAN/TAN Application" option.
●    Step 4: Enter the 15-digit acknowledgment number: Enter the 15-digit acknowledgment number which was provided to you at the time of submission of the PAN card cancellation application.
●    Step 5: Click on the "Submit" button to check the status of the PAN card cancellation application.
●    Step 6: Once you have submitted the acknowledgment number, the status of your PAN card cancellation application will be displayed on the screen. The status can either be "Under Process," "Accepted," or "Rejected."
●    Step 7: If the status of your application is "Rejected," then you should contact the concerned authority for more information.
 

Conclusion

In conclusion, canceling a PAN card is a simple process that can be done by following the above-mentioned steps. It is important to ensure that all necessary steps are taken to cancel a PAN card, as holding multiple PAN cards is illegal and can lead to severe penalties. Moreover, linking Aadhaar with a PAN card has made it mandatory for individuals and business entities to cancel/surrender their additional PAN cards. Checking the status of the PAN card cancellation application is also important, as it helps in tracking the progress of the cancellation process. Therefore, it is essential to follow the correct procedure for canceling a PAN card and to ensure that all the required documents are submitted on time.

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Frequently Asked Questions

Yes, one can cancel their existing PAN (Permanent Account Number) card. It is important to cancel an existing PAN card if a new one has been issued with updated information or if there are multiple PAN cards issued in the same name, as holding multiple PAN cards is illegal and can lead to severe penalties. 

There are several circumstances under which one can cancel their PAN card. These include the issuance of a new PAN card with updated information, the discovery of multiple PAN cards issued in the same name, or the death of the PAN cardholder. Additionally, if an individual has obtained a PAN card by providing false information or documents, they may choose to cancel the card voluntarily to avoid legal repercussions.

An Assessing Officer (AO) code is a unique identification code assigned to an income tax officer who is responsible for assessing and verifying income tax returns filed by taxpayers. The AO code is a 10-digit alphanumeric code that is used by the Income Tax Department of India to identify and track tax-related information for a particular taxpayer.

To find the AO code, taxpayers can follow these steps:

●    Visit the official website of the Income Tax Department of India.
●    Click on the "Know Your PAN" option under the "Services" tab.
●    Enter your full name, date of birth, mobile number, and captcha code in the relevant fields.
●    After entering the details, click on the "Submit" button.
●    Once you submit the details, the AO code along with other details such as the jurisdiction of the assessing officer, the name of the assessing officer, and the address of the assessing officer will be displayed on the screen.

The payment process for PAN (Permanent Account Number) Card cancellation varies depending on the method used for cancellation. If the PAN cardholder is canceling the PAN card through the online process, there is no fee charged for cancellation. However, if the PAN cardholder is submitting a physical application for cancellation, a fee of Rs.110 may be charged.

Yes, it is mandatory for Non-Resident Indians (NRIs) to hold PAN cards if they have taxable income in India. NRIs who earn income in India from sources such as salary, rental income, capital gains, or any other income that is taxable under the Indian Income Tax Act are required to obtain a PAN card. Additionally, NRIs who want to invest in Indian stocks or mutual funds also need to have a PAN card.

However, NRIs who do not have taxable income in India are not required to have a PAN card. They can apply for a PAN card voluntarily if they want to invest in India or for any other purpose. 
 

No, a citizen does not have to cancel their PAN card and apply for a new one if they move to a different city within India. The PAN card issued by the Income Tax Department of India is valid throughout the country and can be used for all tax-related purposes irrespective of the location of the PAN cardholder.

However, if the PAN cardholder has changed their address due to the move, they must update their address with the Income Tax Department by submitting Form 49A, which is used for making changes or corrections in PAN data.