A Permanent Account Number (PAN) is a unique 10-character alphanumeric code assigned by India's Income Tax Department to each taxpayer, serving as vital identification for financial transactions and tax-related activities. Each individual or entity is entitled to only one PAN card. Situations may arise requiring deactivation or reactivation of your PAN card, and this guide provides a step-by-step process to manage this.

Reasons for Activating or Deactivating Your PAN Card

Deactivation Scenarios

• Multiple PAN Cards: Holding more than one PAN card is illegal, and excess cards should be deactivated to avoid fines.
• Foreign Nationals: Foreigners with PAN cards not engaging in financial activities in India should deactivate their PAN to prevent misuse.
• Deceased Individuals: Heirs must deactivate the PAN of deceased persons to thwart fraudulent usage.
• Fake PAN Cards: PAN cards acquired with false documents will be deactivated by the authority.

Activation Scenarios

• Accidental Deactivation: Genuine PAN cards might be mistakenly deactivated due to clerical errors or duplicate PAN cards.
• Inactive PAN: Reactivation is necessary if a PAN becomes inactive due to non-use.

Steps to Reactivate Your PAN Card

A deactivated PAN can halt your financial operations like cash dealings over ₹50,000, filing Income Tax Returns (ITRs), and logging into the e-Filing website. Here's how to reactivate:

1. Write a Letter: Address a letter to the Assessing Officer (AO) requesting reactivation.
2. Attach Documents: Include a self-attested copy of the deactivated PAN card with the letter.
3. Indemnity Bond: Fill out an indemnity bond in favor of the tax department, assuming responsibility for any misuse.
4. Submit ITRs: Provide copies of the ITRs filed using the deactivated PAN from the last three years.
5. Visit the IT Department: Submit the letter and documents to the local tax office.
6. Processing Time: Typically, it takes about 15 days to process the reactivation.

Steps to Deactivate Your PAN Card

For deactivating a PAN card, an online procedure exists:

1. Visit NSDL Portal: Access the NSDL website for PAN services.
2. Select Application Type: Choose "Changes or Correction in existing PAN Data" from the options.
3. Submit Application: Complete the form and note the generated "Token Number."
4. Complete Form: Proceed without marking any change options.
5. E-Sign Form: E-sign with Aadhaar details if suitable.
6. Retain a PAN: Indicate which PAN remains valid.
7. List PANs to Surrender: Specify unwanted PAN cards.
8. Make Payment: Pay the necessary fees online.
9. Submit Application: Save a copy of your application. For a paperless option, e-sign via Aadhaar OTP; otherwise, post the application to NSDL, marking "Application for PAN Cancellation."

Why PAN Cards are Deactivated

Typical reasons for PAN card deactivation by the Income Tax Department include:

• Duplicate or Multiple PAN Cards: Accidental or intentional possession of multiple PANs.
• Fake PAN Cards: Deactivation due to fraudulent document-based issuance.
• Foreign Nationals: PAN cards are invalidated when foreign holders no longer do business in India.
• Deceased Persons: Deactivation upon receipt of a death certificate and formal request.

Checking PAN Card Status

To verify if your PAN is active:

1. Visit e-Filing Website: Access the Income Tax Department's e-Filing portal.
2. Verify PAN: Select "Verify your PAN."
3. Enter Details: Fill in PAN, name, birth date, and mobile number, then proceed.
4. View Status: Check the displayed result for your PAN's status.

If deactivated, follow the steps above to reactivate.

Preventing PAN Card Deactivation

To avoid unnecessary deactivation:

• File ITRs Regularly: Submit your Income Tax Returns yearly.
• Link PAN with Aadhaar: This mandatory link keeps your PAN active.
• Regular Checks: Periodically monitor your PAN's status on the e-Filing site.

Conclusion: Understanding how to manage your PAN card—activating or deactivating it—ensures seamless financial transactions and compliance with tax laws. By adhering to the outlined steps, you can keep your PAN valid or deactivate it if it's unnecessary. Frequent status checks and preventive measures will ensure uninterrupted financial activities.

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