How to Cancel PAN Card Online After Death of Holder?

What is PAN Card

PAN, a personal identification number, is a ten-digit alphanumeric number that identifies the taxpayers in the country and is issued to Indian citizens by the Income Tax Department. PAN works as an identity proof for an individual, which is issued in a laminated card consisting of the Name, father’s name, Date of birth, photo and signature of the cardholder.

A person’s PAN card is not considered valid after death; it is an important document that someone can misuse. As well as it is also the duty of the legal heir of the deceased person to deactivate all such vital documents. This article further informs about the procedure of surrendering a PAN card after the death of a PAN card holder.

How to Cancel or Surrender PAN card Online After Death?

There is no provision for cancellation of PAN cards online. A PAN card has to be surrendered through the legal heir of a deceased person by visiting the nearest income tax department. However, before surrendering the PAN card of the deceased person, the legal heir must file an Income Tax Return and pay taxes if they are due to the deceased taxpayer.

How to Surrender PAN Card on Behalf of the Deceased Person

The first significant step in filing the ITR of a deceased person as a legal heir is to register themselves as a legal heir.

Step 1: The legal heir of the deceased person needs to Visit the nearest income tax office/jurisdiction of the deceased to submit a letter to the Assessing Officer. The letter must consist of the following information about the deceased person:

• Complete name
• Birthdate
• Name of the deceased’s father
• Death certificate
• Reason of death
• Original PAN card

Step 2: Go to the AO (Assessing Officer) office to personally submit the PAN card surrender request. Make sure to have a photocopy of the letter.

Step 3 :After surrendering the PAN card of the deceased person, the Income Tax Department (ITD) would check the background of the surrendered PAN to check if there are any dues, refunds or pending cases against their PAN.

Step 4: After validating demands, dues, refunds or cases, the ITD will deactivate or delete the PAN card.

Note: The data and information about the PAN will still exist in the data of ITD. However, the status of the PAN card will show as deactivated or deleted.

How to Surrender a Duplicate PAN Card?

To surrender a duplicate PAN card, you can either visit the online portal of the Income Tax Department or do it from the TIN NSDL website.

Via Income Tax Department’s Portal

Step 1: Visit the e-filing portal of the IT Department and click on the ‘Surrender Duplicate PAN’ option.

Step 2: Provide necessary details, such as your duplicate permanent account number, date of birth, and other personal information, including contact details.

Step 3: Once you enter the necessary details, click ‘Submit’.

Via TIN NSDL Website

Step 1: Visit the NSDL online portal and click the ‘Changes or correction in existing PAN Data/Reprint of PAN Card’ option from the drop-down menu. 

Step 2: Fill out a form with all the relevant information. After completion, you will receive a token number via email.

Step 3: Click ‘Continue with PAN Application’, then choose ‘Submit scanned images through e-sign’.

Step 4: Submit the PAN you want to surrender. Additionally, provide the details of the other PAN card you wish to retain.  

Step 5: Submit scanned copies of relevant documents with the form and pay a mandatory fee for this process. 

Step 6: Make sure you collect the acknowledgement number.

Why Is It Necessary to Surrender the PAN Card of a Deceased Person?

Upon an individual’s death, their PAN card loses validity. Given its essential role in various financial transactions, it is advisable not to surrender the PAN card immediately after the cardholder’s demise. 

However, the legal heir must settle outstanding taxes before surrendering this document. When surrendering the PAN card, it is mandatory to provide the cardholder’s death certificate and the submission.

What Happens If You Don’t Surrender the PAN Card of a Deceased Person?

There is no legal obligation to surrender the PAN card of a deceased person, and no penalties are imposed for non-compliance with this requirement. Despite this, it is recommended that the PAN card be surrendered voluntarily to prevent potential misuse by unauthorised individuals. 

If the deceased person’s PAN card is not actively used and there are no outstanding Income Tax Returns (ITRs) in their name, it is advisable to submit the card to the Income Tax Department.

How to File the ITR of the Deceased Person

The first major step in filing the ITR of a deceased person as a legal heir is to register himself/herself as a legal heir. 

To get registered as a legal heir, one has to go through the following steps:

Step 1: Go to the official website of the Income tax department and log in to the e-filing portal.

Step 2: Choose the option of Authorized Partners and select the Register as a Representative Option

Step 3: Now, click ‘Let’s get started’ on the redirected page to create a new request.

Step 4: Now, on the redirected page, select the category of the assessee as ‘Deceased (legal heir)’.

Step 5: Fill in all the requirements as asked.

Step 6: Upload all the necessary documents. Size should not exceed 5KB.

Step 7: Submit the request, and a message of successful registration of legal heir will appear on the screen within a few seconds.

Documents Required for Filing as Legal Heir

The following is the list of documents required to file income tax returns as a legal heir on behalf of a deceased person:

• Copy of the PAN card of Deceased
• Copy of the PAN card of the legal heir
• Copy of Death Certificate
• Copy of Legal Heir Proof from the below list:
• Legal Heir Certificate issued by Court of Law /Local Revenue Authority.
• The surviving family member certificate issued by the Local Revenue Authority.
• Family Pension certificate issued by Central/State Government.
• Registered will.
• Letter issued by the banking or Financial Institution on their letterhead, with official seal and signature mentioning the particulars of the nominee or joint account holder to the deceased’s account at the time of demise.

• Copy of the order passed in the name of the deceased (Mandatory only if the reason for registration is ‘Filing of an appeal against an order passed in the name of deceased’).
• Copy of the order /notice (Mandatory only if the reason for registration is ‘Filing of return of income/form of the period in which deceased was alive through condonation request’ (or) ‘A notice/order received from Income Tax Department in the name of the applicant for compliance on behalf of a deceased’)

Filing ITR as Legal Heir

ITR can be completed online or by directly visiting the income tax office with the relevant documents.

Following are the steps to file ITR online:

Step 1: Download the ITR form relevant to the departed person and fill it in to generate the XML File.

Step 2: Visit the income tax official website and log in to the online portal.

Step 3: Visit the e-file option and upload the return of the deceased person.

Step 4: You have to do the following activities and choose the XML file:

1. Select the Permanent Account Number card of the deceased person.
2. Select the ITR Form (You have to upload it).
3. Choose the Assessment Year.

Step 5: Upload the XML file.

Step 6: Sign the ITR digitally as a legal heir using the Digital Signature Certificate.

Step 7: Hit the Submit option, and you have filed the ITR of the deceased. Now, wait for some time till the Assessee Officer validates the documents.

Points to Remember Before Cancelling or Deactivating the PAN Card

After the death of an individual, their PAN card becomes invalid. . However, it may still hold value if it is linked to their bank and Demat accounts.

To surrender the PAN card, ensure that:

• There are no pending IT returns, and all matters related to the closing of bank accounts are resolved. 
• If the deceased had a Demat account, shares need to be transferred to the nominee/legal heir’s account, which requires proper documents and the PAN card of the deceased. 
• Hold on to the PAN card until all ITRs have been processed.

Conclusion

It is essential to cancel PAN cards after the death of a person to avoid any misuse by any fraudster. However, it can only be cancelled by making a physical application with all the required documents of the deceased person and legal heir. But before applying for cancellation, the legal heir must file the return. As discussed above, the legal heir must ensure that all the necessary steps have been fulfilled.

Frequently Asked Questions(FAQs)