PAN Card Surrender For NRIs and Indian Residents

A Permanent Account Number (PAN) card is a mandatory 10-digit alphanumeric ID required for all taxpayers in India. However, having more than one PAN card is strictly prohibited by law, and any extra PAN card must be surrendered immediately, following the PAN card surrender process.

In this PAN Card surrender guide for NRIs, we will discuss the process of surrendering a PAN card for NRIs and Indian residents, as well as the consequences of holding more than one PAN card.

What are the Reasons to Surrender a PAN Card?

There can be multiple reasons as to why an individual or an entity needs to surrender their PAN card. Such reasons include.

1. Having More Than One PAN Card: According to the Government of India, possessing more than one PAN card is illegal. Suppose you have applied for a PAN card more than once, either due to an administrative error or for any other reason, and you end up receiving duplicate PAN cards. In a duplicate PAN issued case, you must immediately surrender the duplicate PAN card. Upon doing so, you avoid penalties and legal consequences associated with having more than one PAN.

2. Death of a PAN Card Holder: If a person holding a PAN card passes away, their PAN card must be surrendered to the authorities. Anyone from the deceased person's family or legal heir can surrender it. Lastly, it must be ensured that the PA number is canceled to prevent any misuse in the future.

3. Firm, Company, or Partnership Closing Down: In the event of closure or dissolution, if a business, firm, entity, or partnership is closed, its PAN card must be surrendered to the Indian Income Tax Department. Upon surrender, it ensures that the tax records are updated and there are no further tax implications for the dissolved entity.

4. Invalidity or Cancellation: There are instances where a card is issued in error for a company that no longer exists or an individual who is not eligible. In such cases, a PAN card must be cancelled or surrendered.

5. Relocation Outside India: If you are relocating abroad and will no longer be liable to Indian taxpayers in the future, you can surrender your PAN card.

6. PAN Card Errors: If any error in the details of PAN card is found, such as spelling errors in names, incorrect DOB, and other information, then in such cases, the PAN card must be surrendered or canceled.

Why You Should Not Hold More Than One PAN Card?

According to the Income Tax Act, 1961, Section 139A, having more than one PAN card is prohibited and constitutes a punishable offense. There are many consequences related to it, including.

1. Penalty: According to Section 272B of the Income Tax Act, if an individual or an entity has more than one PAN card, the Income Tax Department will impose a penalty of Multiple PAN cards of up to Rs 10,000.

2. Linking PAN with Aadhar: Linking PAN with the Aadhar card is an essential step for tax compliance in India. Individuals can link only one PAN card with the Aadhaar card. Whether NRIs or Indian residents, both must link their PAN card with an Aadhaar card. So, if someone is using multiple PAN cards, remember that only only PAN card can be linked to the Aadhar card, and the rest must be surrendered to the Income Tax Department of India.

3. Issues During Financial Transaction: You only need one PAN card for carrying out multiple financial transactions across the country. Be it opening a bank account, filing and income tax return, investing in the market, receiving or making payments that are above the Rs 50,000 limit.

Having more than one PAN card can lead to incorrect taxation and inaccurate financial record-keeping. In a nutshell, multiple PANs can lead to discrepancies in tax filing, and this also presents a hurdle for the government, as it may mistakenly believe that the taxpayer is evading taxes.

How to Surrender Your PAN Card

We will now talk about how individuals can surrender their PAN card, whether they are NRIs or Indian residents. There are two ways: either it can be done online or offline. The process is relatively simple but requires a keen attention to detail.

Surrender PAN Card Online For Non-Residents and Indian Residents

If you have a duplicate PAN card, you can surrender it online through the Income Tax Department of India's website.

Step 1: Go to the official Income Tax Department website and select the Surrender Duplicate PAN option.

Step 2: Enter the details you want to retain, including your personal information such as birth date, contact details, address, name, and more.

Step 3: Use the form provided on the website, following the instructions, to complete the process.

NSDL PAN Surrender Online Process For NRI and Indian Residents

Step 1: Visit the official NSDL portal and navigate to the PAN Change Requests Online Form Page.

Step 2: Now, choose the application type form from the options available: Change or Correction in Existing PAN Data or Reprint of PAN Card.

Step 3: Now, after selecting the form type, complete the form until all he necessary details are filled in, and once done, click on submit.

Step 4: After clicking the submit option, a token number will be sent to the email address you provided. Save it for your future references to continue with the PAN application form.

Step 5: Next, select the submission method, which can be Aadhaar-based e-KYC/e-Sign, physical submission, or a digital signature certificate.

Step 6: Now, fill in all the fields. Indicate the PAN you wish to surrender, select the appropriate checkbox, and then click Next.

Step 7: Upload the documents along with your signature, photographs, and other related documents. Please ensure that all the signatures are authorised.

Step 8: Once everything is uploaded and completed, recheck the PAN surrender application form one more time to ensure there are no errors, and then proceed to make the payment. There are different payment gateways given. Choose the one that suits you, and make the payment.

Step 9: Once the payment is successfully made, you will get an acknowledgment number. For those who have opted for official submission, please print and sign the acknowledgment form, attach your recent passport photo, place it in an envelope, label it, and send it to the NSDL e-Gov. Please make sure that all documents and the firm are submitted within 15 days.

The address to send postal mail is: NSDL e-Gov, Income Tax PAN Services Unit, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune 411016.

Surrender PAN Card Offline Process

To surrender your PAN card offline, you can do so by submitting the form and a PAN card surrender letter to the Assessing Officer.

Step 1: Fill the form. Complete the "Request for new PAN card, changes, or correction in PAN Data form.

Step 2: Take the form along with all the required documents to your nearest NSDL collection center.

Step 3: Once you submit the form and all the documents, you will get an acknowledgment slip.

Step 4: You must submit the acknowledgment slips to the NSDL within 15 days of the transaction.

Step 5: Write a letter, listing the case of a duplicate PAN card and request for its cancellation. You can also provide an affidavit that you had only one PAN.

Step 6: Submit the letter to the local Income Tax assessing officer and request the cancellation of the duplicate PAN card.

Please note that you must retain the acknowledgment number for reference.

PAN Surrender Process For a Deceased Person

When a person passes away and has ever held a PAN card, their family members or legal heirs can either cancel or surrender the deceased's PAN card by following the steps mentioned below:

Write a letter: You need to write a letter addressed to the Income Tax Officer of the jurisdiction where the deceased's PAN card was registered, explaining the reason for the cancellation or surrender of the PAN card.

Give all the Details: The letter must include all details about the PAN cardholder, including name, date of birth, and PAN number. Additionally, the letter must consist of the death certificate of the deceased.

The process of surrendering a deceased PAN card for non-resident Indians, foreign nationals, and Indian residents is the same, regardless of their nationality.

PAN Card Surrender Online Process for Company or Firm

Step 1: Visit the official NSDL website and select the correct application form from the available options: "Changes or correction of existing PAN data/Reprint of PAN card".

Step 2: Upon choosing the right form, you will now enter all the details required, and in the section labelled as "Mention other Permanent account number (PANs), enter the number for that. Inadvertently, a PAN card was allotted to you. Ensure that you enter the PAN number of the PAN card you want to cancel.

Step 3: Review the form carefully to ensure there are no errors, and then proceed to make the payment by minting using the provided payment entry gateways.

Step 4: Once the payment is successful, print the acknowledgment receipt that has been generated.

Step 5: Along with the acknowledgement number receipt, send all required documents, including a copy of the PAN card that must be surrendered, the dissolution deed (if applicable), and a letter stating your reasons for surrendering extra PAN card to the NSDL e-Gov Income Tax PAN Services Unit address.

Step 6: Now, wait for the confirmation notification.

PAN Card Surrender Offline Procedure for Firm or Company

Step 1: Write a letter to the income tax officer in the area where the company used to file the taxes. The letter must state that the company or the firm is dissolved, as the ANC card issued to that firm or company needs to be surrendered.

Step 2: Attach all he required documents with the letter. The document includes the dissolution deed, the last file return acknowledgement, and the discontinuation of the company or the firm.

Step 3: Submit all relevant documents and the letter to the Income Tax officer, and obtain the acknowledgment receipt provided by the officer as proof of submission.

How To Surrender The PAN Card In Use

For NRIs and Indian residents or anyone holding a PAN card, it is generally aid that one must not surrender it because it acts as a valid identification proof in India and in case someone leaves India or is no longer liable to ay taxes in India, in such case the PAN card must be surrendered when not in use. To do so:

Step 1: Write a letter to the income tax officer in your jurisdiction. The letter must clearly state the explanation behind the PAN card. Surrender.

Step 2: Provide the personal details in the letter, which include your name, nationality, address, PAN number, and other relevant information.

Step 3: Now, submit the physical PAN card after it has been cancelled to the tax office.

How to Check the Status of the Surrender PAN Card

Once you have submitted the PAN card form, you can check the status by following the steps.

Step 1: Go to the Income Tax e-filing website and select the "Verify PAN status under the Quick link section, and click on it.

Step 2: Enter the requested information, which includes your PAN number, date of birth, name, mobile number, and more, and then click Continue.

Step 3: You will then get an OTP on your mobile number. Enter the one-time password (OTP) and click 'Validate'.

Step 4: Lastly, once validated, you can view the status of your surrender PAN card application form on your screen.

Things to Consider Before Surrendering Your PAN Card

• Clear Reason: The reason must be valid and clearly stated about why you want to surrender your PAN card.
• Documents: Individuals and firms/companies must ensure that all necessary documents are present and submitted during the process. The officials can reject the entire process if the documents are not complete.
• Offline or Online: You must decide whether you want to surrender the PAN card through the online process or the offline process and then follow it completely.
• Acknowledgment Receipt: Ensure you collect your acknowledgment receipt, especially when surrendering the PAN card offline.
• Notification: Once you have surrendered your PAN card, please inform the relevant entities, such as financial institutions or banks, about the cancellation of your PAN.

Surrender Your PAN Card With Savetaxs

Surrendering your PAN card is a necessary process that ensures your tax records are up to date and your identity is protected. The process for NRIs and Indian citizens surrendering their PAN card is, however, similar; however, it requires a certain level of attention when dealing with an NRI surrender PAN card case. Because one wrong input or missed document, and the entire process comes down to zero. Hence, to save you from any legal penalties and delays, your best mate, Savetaxs, is here to help.

As a leading firm, we have been assisting NRIs for over a decade, and our satisfied clientele base is a testament to the quality of our services. Our team of experts brings over 30 years of combined experience and has extensive knowledge in NRI-specific regulations, as well as foreign and Indian tax laws. These experts will ensure that your PAN surrender process proceeds smoothly and efficiently. From document gathering and surrendering PAN card application process to confirmation that your PAN card has been canceled or surrendered successfully, we won't leave you behind.

Non-resident Indians (NRIs) can surrender their PAN card in one click with Savetaxs. Connect with us now!