PAN Surrender

PAN refers to Permanent Account Number; it is a unique number which is being allotted to individuals / firms / companies / Trust Societies / HUF / Association of persons etc. This PAN helps them to file their income tax returns. On the other hand Income tax department can be able and trace the person through PAN allotted. Process of allotment of PAN is made through online filing of PAN application on the website of NSDL or UTITSL along-with requisite documents, instant PAN allotment is also a process wherein PAN is allotted though Income Tax Portal by mapping Aadhaar of the person. Another alternative for allotment of PAN is to file physical PAN application letter along-with requisite documents and file them at PAN allotment Centres managed by NSDL or UTITSL.

PAN once obtained can be surrender in following circumstances:

1. Winding of Companies: After closure of companies the PAN allotted to such company need to be surrendered
2. Winding of Firm / LLP: After closure of Firm / LLP, the PAN allotted to such firm or LLP need to be surrendered
3. Death of individual: After death of individual, its last income tax return can be filed by the legal heir mentioning the name and details of legal heir and the income tax department acknowledge the death of individual and process the income tax return filed by the legal heir.
4. Possessing of multiple PAN: Most of the persons by erroneously make multiple PAN card and are in possession of multiple PAN. In accordance with Income Tax Act 1961, section 139A of the Act clearly laid down that any person is authorized to possess one PAN only. Further in accordance with section 272B of the Income tax Act 1961, there is penalty imposed for an amount of INR 10,000 on possessing of multiple PAN.

For categories 1 to 3, PAN surrender application can be made to the jurisdictional Assessing officer and the jurisdictional AO shall surrender the PAN. PAN cannot be surrender in case any litigation is pending at either stage or upto the time of limitation of the appeal, even if company / firm etc is winded up or closed, still PAN will got surrendered by the Jurisdictional AO only after processing of all litigation / appeal considering time of limitation of appeal. PAN Surrender provide complete rid from multiple PAN and the person can save himself from penalty under section 272B of Income Tax Act.

For category 4, in case of possession of multiple PAN, it can be surrendered online by making application of changes / correction in PAN data and file it on NSDL or UTITSL portal. While filing correction form, at the end there is column for mentioning duplicate PAN, the applicant need to fill the PAN in duplicate PAN column which he wants to surrender. Another procedure for PAN Surrender is to write an application to Jurisdictional Assessing Officer for surrender of duplicate PAN.

With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your PAN Surrender and thereafter will provide you detailed analysis mentioning the law requirement and compliance need to fulfill in order to provide PAN Surrender related services economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your PAN surrender compliance need.