When one of the members of your family passes away, managing their financial records is part of the death procedures. Among them is the Permanent Account Number (PAN) card. While there is no law requiring its cancellation immediately, voluntarily returning the PAN of the deceased is highly recommended to avoid future hassles such as identity misuse or tax notifications.
A PAN card remains valid even after death unless it is lawfully cancelled. If not cancelled, then it can be fraudulently utilised for money transactions like opening bank accounts, obtaining loans, or receiving unauthorised refunds. Also, to settle any outstanding income tax problems or to submit the last tax return on behalf of the deceased, the PAN must be formally linked with a legal heir prior to its deactivation. Deactivating it also ensures that the financial identity of the individual is retired in a respectful and proper way.
Documentation required
To cancel the PAN of a deceased person, you will need the original PAN card (if held), a death certificate copy obtained from the hospital or municipal authority, and a covering letter of request for cancellation. Along with this, you must provide a duplicate of your PAN card and proof of association with the deceased person, such as a legal heir certificate, Aadhaar card, or will. These reports help the tax department to confirm your identity and right to seek cancellation.
Drafting and sending the cancellation request
The first action towards cancellation is to write a formal letter to the jurisdictional Assessing Officer (AO) of the Income Tax Department. The letter should include the deceased's full name and PAN, date of death, and a request for cancellation of the PAN. It should be signed by you, being the representative or legal heir, and should state your own details as well as your relationship with the deceased. After preparing the letter, you must annex all the documents and present them personally or send through registered post to the relevant AO.
Finding the right Assessing Officer
Each PAN card is assigned an Assessing Officer based on the PAN cardholder's geographical location or income category. To ascertain which officer has jurisdiction over the PAN of the deceased, you can access the "Know Your AO" facility on the website of the Income Tax Department. Once you know the correct AO, you can address your letter and documents to their office for action.
Alternate process using Form 49A
Another method to cancel a PAN card is to fill out a physical PAN correction form, that is, Form 49A. This can be downloaded from the NSDL website. Fill in the form by putting a check mark at the place that says the PAN is to be cancelled and then give the PAN details of the deceased. Attach all the documents for which the claim is being made, including the death certificate and the identity document, and affix on the envelope: "Application for cancellation of PAN –
Deceased." File the completed application at the nearest NSDL PAN service centre. This method comes in handy where you cannot access the Assessing Officer personally.
What happens after submission
After submitting the request, the Assessing Officer will verify the documents and cancel it. Even though you might not receive a formal approval every time, you can call the AO's office or check the status by calling or visiting the office. If you have made the request through NSDL, you may receive a tracking number for the application.
Important considerations
There is no facility on the e-filing portal to cancel a PAN and therefore the process has to be executed either through the AO or by the physical application method of NSDL. If the deceased person had some tax liability or was due for a refund, it is recommended that the legal heir become a representative assessee in the income tax portal. This will allow you to shut down all accounts and file the last return in the right way. Don't forget, it is illegal to keep using the PAN of a deceased individual for any legal or financial transaction and may lead to legal consequences.
Cancellation of the PAN card of a deceased relative is a responsible and obligatory step towards closure of their financial identity in a dignified manner. It avoids misuse, shuts tax liability, and aids in maintaining the tax system integrity intact. Follow-up of the above process guarantees respectful, legal, and hassle-free cancellation.
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