PAN card or PAN number stands for a Permanent Account number, which is assigned uniquely to all individuals liable to pay tax to the government as per Indian Income Tax rules. It is a 10 digit alphanumeric number and has to be mandatorily mentioned by the tax payer while making any kind of financial transaction. PAN cards help the government to keep a track on the various financial transactions carried out by an individual.
As per Section 139A of the Income Tax Act, an individual taxpayer may at any point of time, hold only one PAN card. In case, he is found holding more than one PAN card, he will have to pay a penalty of Rs 10000 to the IT department.
How to Cancel PAN Card
The individual has to apply for a cancellation of his PAN card in any of the situations mentioned above. He can apply for the same via two methods, i.e. either online or offline. It means he may choose to apply for the cancellation of his PAN card by personally visiting the registered NSDL TIN facilitation center or may choose to do the same with the help of the registered online portal available at the official website of the IT Department.
Here are two ways for PAN Card Cancellation
– Let us have a detailed look in each of the methods:
Online Mode: The assessee may apply for the cancellation of the PAN Card online by following the below mentioned steps:
Step 1: He has to login to the registered site of the Indian IT Department available at
- Step 2: He has to then read the provided instruction on the screen in order to complete the form. Having done that, he has to enter the relevant details. The details so provided must be valid and true.
The assessee may also apply for the same by filling out the ‘PAN Change Request’ Application form. He can do so by following the below mentioned steps:
- Step 1: He has to log in to the registered site of the IT Department and click on ‘PAN Change Request’ application form.
- Step 2: He has to fill out the form diligently with correct information. The assessee has to fill in the details of the PAN which is being used currently on the top of the application form.
- Step 3: The details of the extra PANs allotted to the assessee have to be entered carefully in item no.11.
- Step 4: The assessee has to make sure that he submits the PAN Card to be cancelled along with the PAN Change Request application Form.
Offline Mode: The assessee may also apply for PAN Card cancellation by visiting the designated PAN Centers by following the below mentioned steps:
- Step 1: The assessee has to fill form 49A available at any NSDL TIN facilitation center. The form is filled out in order to make corrections in one’s PAN Card. The assessee after having filled the form duly is required to submit the same at any NSDL Tin facilitation center and request for correction in his PAN card details.
The assessee may also apply for corrections or any alterations to his PAN card by addressing an application in the form of a letter to the immediate assessing officer in charge of the area. The letter should contain valid details of the assessee. The details so provided must be true to its nature. The various details that have to be provided by the applicant are:
- Name of the assessee: The applicant has to provide his correct name in the letter. The name so provided should be the same as it appears on other legal documents of the applicant.
- Address of the assessee: The applicant should mention his correct address in the letter. The address provided should be the applicant’s valid residential address.
- Information about the Pan card that has to be cancelled or surrendered: The applicant has to mention clear details of the extra PAN cards possessed by him/her and the ones which he/she wishes to surrender.
- Information about the PAN card that has to be retained: The applicant also has to mention clear details of the PAN card which he/she wishes to hold with him/her.
The assessee must make sure that he/she collects an acknowledgement copy of the letter submitted by him/her to the officer in charge. The acknowledgement letter so issued by the IT Department is treated as a proof that the extra PAN card possessed by the applicant has been cancelled by the IT department. Having collected the letter from the department, the applicant need not contact the IT department again in order to make sure that the extra PAN Card possessed by him has been cancelled.
As a responsible Indian Citizen, it is the duty of each and every tax payer to hold a PAN card. The taxpayer must also make sure to hold only one PAN Card at any given point of time. Holding more than one PAN Card is illegal and can attract punishment. The individual has to mandatorily apply for cancellation of his/ her PAN Card in case more than one such card has been issued to him by the IT department. Doing so, will save an individual from various hassles that he might have to suffer if found holding more than one PAN Card.
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Reasons for Cancellation of PAN Number
1. Multiple PAN numbers issued by the IT Department:
The IT department owing to some human error issues multiple PAN numbers to an individual tax payer.
The assessee at times ends up applying for a PAN number multiple times which leads to allocation of different PAN numbers to the same individual by the IT Department.
2. Errors in the Details Printed on the PAN Card:
Many times the PAN Card so issued to an individual may contain erroneous details in it. For example, the name of the assessee may be printed wrongly or the date of birth is incorrect. The individual in this case is required to apply for cancellation of the PAN card and apply for a new one.