How to Activate or Deactivate Your PAN Card: A Guide

A Permanent Account Number (PAN) is a distinct 10-character alphanumeric identifier issued by India's Income Tax Department to each taxpayer, crucial for financial dealings and tax-related matters. Each taxpayer, whether individual or entity, is permitted only one PAN card. Certain situations may necessitate the deactivation or reactivation of your PAN card, and the following guide outlines a systematic approach to handle this.

Reasons for Activating or Deactivating Your PAN Card

Deactivation Scenarios

• Multiple PAN Cards: Owning more than one PAN is illegal, and surplus cards must be deactivated to avoid penalties.
• Foreign Nationals: Non-residents with PAN cards not involved in financial activities in India should deactivate their PAN to prevent misuse.
• Deceased Individuals: Beneficiaries should deactivate the PAN of deceased individuals to prevent fraudulent use.
• Fake PAN Cards: PAN cards obtained with fraudulent documents are subject to deactivation by authorities.

Activation Scenarios

• Accidental Deactivation: Legitimate PAN cards may be inadvertently deactivated due to clerical errors or duplicates.
• Inactive PAN: Reactivation is essential for PANs becoming inactive due to inactivity.

Steps to Reactivate Your PAN Card

A deactivated PAN can obstruct financial activities like cash transactions over ₹50,000, filing Income Tax Returns (ITRs), and e-Filing platform access. Here's a method to reactivate it:

1. Write a Letter: Direct a letter to the Assessing Officer (AO) for reactivation.
2. Attach Documents: Include a self-attested copy of the deactivated PAN card.
3. Indemnity Bond: Complete an indemnity bond for the tax department, accepting liability for potential misuse.
4. Submit ITRs: Attach copies of the ITRs filed with the deactivated PAN over the past three years.
5. Visit the IT Department: Present the letter and associated documents at the local tax office.
6. Processing Time: Typically, reactivation takes approximately 15 days.

Steps to Deactivate Your PAN Card

An online process is available for deactivating a PAN card:

1. Visit NSDL Portal: Navigate to the NSDL website for PAN services.
2. Select Application Type: Opt for "Changes or Correction in existing PAN Data."
3. Submit Application: Complete the form and note the "Token Number" generated.
4. Complete Form: Continue without indicating changes.
5. E-Sign Form: E-sign using Aadhaar if applicable.
6. Retain a PAN: State which PAN will remain active.
7. List PANs to Surrender: Specify PANs for cancellation.
8. Make Payment: Pay the required fees online.
9. Submit Application: Retain a copy of your submission. Choose Aadhaar OTP for a paperless process or mail it to NSDL, labeled "Application for PAN Cancellation."

Why PAN Cards are Deactivated

Common motives for PAN card deactivation by the Income Tax Department include:

• Duplicate or Multiple PAN Cards: Accidental or deliberate possession of several PANs.
• Fake PAN Cards: Deactivation stemming from issuance based on false documents.
• Foreign Nationals: PAN cards annulled when foreign holders cease business activities in India.
• Deceased Persons: Deactivated upon receiving a death certificate and official request.

Checking PAN Card Status

To ascertain if your PAN remains active:

1. Visit e-Filing Website: Access the Income Tax Department's e-Filing portal.
2. Verify PAN: Choose "Verify your PAN."
3. Enter Details: Input PAN, name, date of birth, and mobile number, then continue.
4. View Status: Review your PAN's status as displayed.

If deactivated, proceed with the reactivation steps outlined above.

Preventing PAN Card Deactivation

To avert needless deactivation:

• File ITRs Regularly: Annually submit your Income Tax Returns.
• Link PAN with Aadhaar: This essential link ensures your PAN stays active.
• Regular Checks: Routinely check your PAN status on the e-Filing site.

Conclusion: Understanding how to manage your PAN card, whether activating or deactivating, guarantees seamless financial transactions and adherence to tax laws. Adhere to the provided steps for keeping your PAN active or deactivating it if superfluous. Regular status checks and precautionary actions will facilitate uninterrupted financial activities.