A Permanent Account Number (PAN) card is an essential financial identification issued by the Income Tax Department of India. This crucial document holds immense significance, as a vital tool for tax-related processes, financial activities, and official verifications. However, circumstances may arise where individuals need to cancel their PAN cards due to reasons like duplicate cards, any errors, etc. Understanding the process to cancel a PAN card online or offline is important, as it ensures streamlined financial management and compliance with regulatory norms.
In this article, learn about the steps to cancel a PAN card, how to check the cancellation status, reasons for cancellation and what happens if you don’t cancel a PAN card.
Pan Card Cancellation Form
To cancel a PAN card, you need to fill out the form that says, “Request For New PAN Card Or/ And Changes Or Correction in PAN Data”. Fill your details in the form and ensure that you are the PAN card details you are using on the top. And the duplicate PAN numbers should be mentioned in the section ‘Mention other Permanent Account Numbers (PANs) inadvertently allotted to you’.
How to Cancel a PAN Card?
The steps to cancel a PAN card are similar to the ones you submit for a change in a PAN card. You can cancel a PAN card online or offline at your convenience.
Steps to Cancel a PAN Card Online
- Go to the NSDL e-gov portal.
- Under ‘Services’ click on PAN.
- Select “Apply” under the ‘Change/Correction in PAN Data” section.
- Under the application type, select “Changes/Correction in Existing PAN Data”.
- Fill in your relevant details rightly in the PAN card cancellation form.
- Make an online payment to submit PAN card cancellation online.
- Download the application details or acknowledgement details for further reference.
Steps to Cancel a PAN Card Offline
- Visit the Income Tax Department website.
- Find the “Request For New PAN Card Or/ And Changes Or Correction in PAN Data” form.
- Fill out the form with your relevant details.
- Add the duplicate PAN card details in the section allotted in the form.
- Take necessary documents like your original PAN card and duplicate ones as well.
- Visit the nearby NSDL office to submit the duly filled form.
- The authorities will verify the details and provide an acknowledgement slip for the same.
In this process, you might have to provide a letter as well along with the form explaining about the duplicate PAN card cancellation.
How To Check Pan Cancellation Status
Here are the steps you need to follow to check the status of your PAN card cancellation.
- Go to the NSDL e-gov portal.
- Under ‘Services’ click on PAN.
- On the left side of the page, find the ‘Know Your Application Status’ option.
- Under ‘Application Type’ select ‘New/Change PAN Request’.
- Enter your 15-digit acknowledgement number.
- Enter the code displayed on the screen.
- Click on ‘Submit’.
Reasons for PAN Card Cancellation
- Duplicate PAN: Individuals might have unintentionally obtained multiple PAN cards, which is against the law. Cancelling duplicate PAN cards streamlines financial records and prevents potential misuse.
- Incorrect information: Inaccurate personal details, such as name, date of birth, or address, on a PAN card could lead to cancellation to ensure accurate documentation.
- Death of PAN holder: In the unfortunate event of a PAN holder’s demise, their PAN card may need to be cancelled to avoid potential identity-related issues.
- Migration to another country: If an individual is shifting to another country and there is no possibility for financial transactions in India further then they choose to cancel the existing PAN card.
- Closure of a business: Businesses that cease operations or dissolve may choose to cancel their PAN cards to wrap up financial matters.
- Lost or stolen: Individuals might opt for cancellation to prevent potential misuse in cases of a lost or stolen PAN card.
What Happens if You Don’t Cancel a PAN Card?
Operating with multiple PAN cards or having inaccurate details can disrupt your financial transactions, tax calculations, and overall financial record-keeping. According to the Indian Government, an individual cannot hold more than one PAN card. If a person holds more than one PAN card, under section 272B of the Income Tax Act, 1961, a penalty of ₹10,000 is levied. Furthermore, multiple PAN cards can lead to challenges in Aadhaar linking, affecting your ability to complete KYC processes and avail the Government benefits.
Conclusion
The steps for how to cancel a PAN card online or offline are simple. All you need to do is to fill out the form with the right information and keep track of the application status until the duplicate cards are cancelled.
