Pan Surrender

Reasons to Surrender a PAN:

1. Multiple PANs: If you possess more than one PAN, you need to surrender the additional PAN(s) as having multiple PANs is illegal and can attract penalties.

2. Non-Requirement: If you no longer need a PAN, such as in the case of individuals who are no longer earning taxable income.

3. Death of PAN Holder: If the PAN holder has passed away, the legal heir should surrender the PAN to avoid any misuse.

Documents Required for Surrendering PAN:

1. PAN Card: The original PAN card(s) that you wish to surrender.

2. Letter of Surrender: A formal letter addressed to the Income Tax Officer detailing the reason for surrender and listing the PAN(s) to be surrendered.

3. Proof of Identity: A copy of a valid ID proof (e.g., Aadhaar card, Voter ID, Passport) of the PAN holder or legal heir.

4. Death Certificate: In the case of the death of the PAN holder, a copy of the death certificate.

Steps to Surrender PAN:

For Individuals with Multiple PANs:

1. Prepare the Letter:

   • Write a formal letter to the Income Tax Officer of your jurisdiction.
   • Mention the details of the PAN you want to retain and the PAN(s) you wish to surrender.
   • Provide a reason for surrendering the additional PAN(s).

2. Submit the Request:

   • Attach the original PAN card(s) to be surrendered.
   • Attach a copy of the PAN card you wish to retain.
   • Include a copy of your identity proof.
   • Submit these documents to the local NSDL TIN Facilitation Center or UTIITSL office.

3. Acknowledgment:

   • Upon submission, you will receive an acknowledgment receipt. Keep this for your records.

For Deceased PAN Holder:

1. Prepare the Letter:

   • The legal heir should write a formal letter to the Income Tax Officer.
   • Mention the PAN of the deceased and the reason for surrendering it.

2. Submit the Request:

   • Attach the original PAN card of the deceased.
   • Attach a copy of the death certificate.
   • Include a copy of the legal heir’s identity proof.
   • Submit these documents to the local NSDL TIN Facilitation Center or UTIITSL office.

3. Acknowledgment:

   • The legal heir will receive an acknowledgment receipt upon submission.

Online Process (for Multiple PANs):

1. Visit the NSDL Website:

   • Go to the NSDL website: https://www.tin-nsdl.com.

2. Fill the Form:

   • Navigate to the section for PAN correction or changes.
   • Fill in the details and mention the PANs you wish to surrender.

3. Submit and Upload Documents:

   • Upload the necessary documents as required.
   • Submit the form and print the acknowledgment.

4. Send Physical Documents:

   • Send the acknowledgment receipt along with the required documents to the NSDL office.

Important Points:

• Legal Heir: In the case of death, only the legal heir can request the surrender of the PAN.
• Penalty for Multiple PANs: Holding more than one PAN can attract a penalty of ₹10,000 under Section 272B of the Income Tax Act.
• Record Keeping: Always keep copies of the documents submitted and the acknowledgment receipt for your records.

By following these steps and providing the required documents, you can effectively surrender the PAN that is no longer needed or in case of the PAN holder's death.

• If you have been inadvertently issued multiple PANs, it is mandatory to surrender the additional PAN(s) to avoid penalties and legal issues.
• Legal heirs or representatives can surrender the PAN of a deceased individual to ensure that no further financial transactions are conducted using that PAN.
• NRIs or foreign nationals who had obtained a PAN during their stay in India but no longer require it for financial or tax purposes can surrender their PAN.
• Individuals who are no longer required to file income tax returns or conduct financial transactions that necessitate a PAN can opt to surrender their PAN.
• Legal Compliance: Holding more than one PAN is illegal and can result in penalties. Simplification: Simplifies financial and tax records by ensuring only one PAN is active. Updating Records: Helps in maintaining accurate records with the Income Tax Department. Closure of Tax Obligations: For deceased individuals or those who have relocated and no longer need a PAN.

For Individuals with Multiple PANs:

1. Original PAN Cards:

   • The original PAN card(s) that you wish to surrender.

2. Retained PAN Card:

   • A copy of the PAN card you wish to retain.

3. Proof of Identity:

   • A copy of a valid ID proof of the PAN holder (e.g., Aadhaar card, Voter ID, Passport).

4. Letter of Surrender:

   • A formal letter addressed to the Income Tax Officer of your jurisdiction stating the reason for surrender and listing the PAN(s) to be surrendered.

For Deceased PAN Holder:

1. Original PAN Card of the Deceased:

   • The original PAN card of the deceased.

2. Death Certificate:

   • A copy of the death certificate of the PAN holder.

3. Proof of Identity of the Legal Heir:

   • A copy of a valid ID proof of the legal heir (e.g., Aadhaar card, Voter ID, Passport).

4. Proof of Relationship:

   • A document establishing the relationship of the legal heir with the deceased (e.g., family tree, birth certificate, will, or court order).

5. Letter of Surrender by Legal Heir:

   • A formal letter addressed to the Income Tax Officer mentioning the PAN of the deceased and the reason for surrendering it, signed by the legal heir.