How to Cancel Pan Card Online After Death
What is PAN Card
PAN, Personal Identification Number, is a ten-digit alphanumeric number that identifies the taxpayers in the country and is issued to the Indian citizen 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 PAN card of a person is not considered valid after death, it is a vulnerable document that someone can misuse. As well as it is the duty of the legal heir of the deceased person to deactivate all such important documents. This article further informs about the procedure of surrendering a PAN card after the death of a PAN card holder.
How to cancel 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 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
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 following information about the deceased person:
- Complete name
- 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 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 needed for filing as legal heir
- 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.
- 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:
- Select the Permanent Account Number card of the deceased person.
- Select the ITR Form (You have to upload it).
- 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, if it is linked to their bank and Demat accounts, it may still hold value.
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.
It is important 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)
What Happens If Income Tax Authorities Are Not Informed about the Deceased?
If the authorities are not informed about the deceased or the legal heir does not file their ITR before the financial year ends, then as per Section 270A of the Income Tax Act, they may have to pay penalties equal to 50% of the tax incurred by the deceased taxpayer. Prosecution under Section 276CC may also be initiated for non-compliance.
What happens if ITR is pending after the death of the PAN cardholder?
As a legal heir, if you do not file the ITR of the departed person, the Income Tax Department can impose the penalty on you and the deceased person. However, this will lead to limited access to the assets you receive from the late individual’s inheritance.
Till when the PAN card of a deceased person should be retained?
A PAN card is a mandatory record for various purposes such as bank accounts, demat accounts, and filing of the deceased’s income tax returns (ITR). Thus, the PAN must be retained till all such accounts, where quoting the PAN is mandatory, are closed. In the case of filing ITRs, the PAN must be held till the tax return has been filed and processed by the I-T department.