PAN Card after Death

Surrendering a PAN card following the death of the cardholder is a crucial step to prevent misuse or fraudulent activities. It is important for the legal heirs to follow the appropriate procedures, either online or offline, to ensure the PAN card is properly surrendered.

How to surrender PAN card online?

Step-by-step process to surrender PAN card online after holders’ death:

1. Visit the ‘PAN Change Request Online Form’ page on the NSDL website.
2. From the “Application Type” drop-down, select the “Changes or Correction in existing PAN Data/Reprint of PAN Card (No changes in existing PAN Data)” option.
3. Complete the form with the required details such as citizenship, category, title, etc., and click on the ‘Submit’ button. After submission, a token number will be generated and sent to the provided email address.
4. Note down your token number for future reference and proceed by clicking the “Continue with PAN Application Form” button.
5. Choose the method for submitting your PAN application documents: digitally through Aadhaar-based e-KYC/e-Sign (paperless), Digital Signature Certificate (DSC) (submit scanned images through e-Sign), or by sending application documents physically.
6. Fill in all other mandatory fields, mention additional PANs to be surrendered, select the appropriate checkbox, and click ‘Next’.
7. On the next screen, select the proof of identity, residence, and date of birth you will submit.
8. Upload the scanned images of your photograph, signature, and required documents. If an individual is requesting the surrender of a PAN, they must sign the declaration, or it should be signed by the authorised signatories, such as a Director for a company or a partner for a partnership firm/LLP.
9. After submitting your details, a preview of your application form will be displayed. Verify your details and make any necessary edits before proceeding to payment.
10. Make the required payment via demand draft, credit card, debit card, or internet banking.
11. Once the payment is successful, a downloadable acknowledgement will be displayed. Save and print the acknowledgement for future reference and as proof of payment.
12. If sending the application form and documents physically, affix two photographs on the printed acknowledgement copy, sign it, and send it to NSDL e-Gov. Label the envelope with ‘Application for PAN Cancellation’ and the acknowledgement number.
13. Ensure that the acknowledgement, demand draft (if applicable), and document proof reach NSDL e-Gov within 15 days from the date of the online application. These guidelines do not apply if you use DSC or Aadhaar-based e-Sign for the online PAN application.

Send the signed acknowledgement along with the demand draft (if required) and the required documents (proof of existing PAN, proof of identity, address, and date of birth) to the following address: NSDL e-Gov at ‘Income Tax PAN Services Unit, NSDL e-Governance Infrastructure Limited, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411 016.

How to surrender PAN card offline?

To surrender your PAN card offline, follow these steps:

1. Fill out the “Request For New PAN Card Or/And Changes Or Correction in PAN Data” form.
2. Submit the PAN form at the nearest NSDL collection centre with copies of the necessary documents.
3. Once you submit the form, you will receive an acknowledgement slip, which must be sent to the NSDL office within 15 days of filing the request.
4. Additionally, file a letter with the Assessing Officer listing the duplicate PAN details and requesting cancellation. The Assessing Officer may also require an affidavit stating that no other PAN card exists except the one in use.
5. Alternatively, visit the nearest Income Tax Assessing Officer of your jurisdiction and submit a letter stating the duplicate PAN details and requesting cancellation. Post or hand over the letter to the nearest tax office and save the acknowledgment number.
   

How to file the ITR on behalf of the deceased PAN card holder?

On the death of a PAN cardholder, their relatives must write a letter to the Income Tax Officer of the respective jurisdiction, stating the reason for surrender (i.e., death of the holder) and attaching the death certificate. The letter should include details such as the name, PAN card number, and date of birth. This process is the same for Indian residents, NRIs, and foreign nationals.

Legally, a legal heir represents the deceased's assets. Acceptable documents as legal heir certificates include:

• The certificate of legal heirship issued by a court of law.
• The certificate of legal heirship issued by the local revenue authority.
  
• The certificate issued by local revenue officials to the remaining family members.
• The deceased person's registered Will.
• The State/Central government's family pension certificate.
• The certificate of surviving family members issued by local revenue authorities (Municipality, Nagarpalika). This certificate is often issued in a regional language, so the legal heir must translate it into English/Hindi and have it notarised.
  

Considerations before surrendering the PAN card of a deceased individual

Upon the demise of an individual, their Permanent Account Number (PAN) becomes inactive. However, it may retain relevance if it is linked to bank or Demat accounts. Legal heirs might also be required to file the deceased's income tax returns.

Before surrendering the PAN card, the following factors should be considered:

• Outstanding tax returns: Ensure that all pending income tax returns of the deceased have been processed by the Income Tax Department.
• Demat account transfers: If the deceased had a Demat account, shares must be transferred to the nominee or legal heir's Demat account. This process requires appropriate documentation, including the deceased's PAN card.
• Bank account closure: Address all matters related to closing the deceased's bank accounts prior to surrendering the PAN card.

Consequences of not surrendering the PAN card of a deceased individual

While there is no legal penalty for not surrendering a deceased person's PAN card, it is recommended to do so to prevent potential misuse. If the PAN card is no longer in use and there are no outstanding income tax returns, it should be surrendered to the Income Tax Department.