Marianne Martinez
The Permanent Account Number (PAN) card is a crucial document for anyone engaging in financial activities in India. It is a 10-digit alphanumeric code that contains all taxable financial history of the cardholder. The Income Tax Department has the authority to deactivate PAN cards for various reasons, including duplicate/multiple PAN cards, fake PAN cards, and non-residency status of foreigners who no longer need to conduct financial transactions in India. When a PAN card is deactivated, the cardholder may face difficulties in making large cash transactions and filing income tax returns. It is important for cardholders to check the status of their PAN card and take the necessary steps to reactivate it if it has been deactivated. The process of reactivating a deactivated PAN card typically involves submitting a request letter along with the required documents to the Income Tax Department, and it may take around 10 to 15 days for reactivation.
| Characteristics | Values |
|---|---|
| Reasons for deactivation | Multiple PAN cards, fraudulent activities, death of the cardholder, non-residency status of foreigners who no longer need to carry out financial transactions in India, failure to link PAN with Aadhaar Card |
| Impact of deactivation | Inability to access funds, file tax returns, check intimations or notifications, or reply to communications made by the Income Tax Department |
| Reactivation process | Submit a request letter to the Assessing Officer of your jurisdiction with necessary documents, including an Indemnity Bond in favour of the Income Tax Department, a copy of the PAN, and the last 3 years of Income Tax Returns filed on the PAN |
| Reactivation time | 10-15 days |
| Prevention of deactivation | Ensure possession of only one PAN card, regularly update information with the Income Tax Department, ensure all financial transactions are correctly linked to the PAN card, and comply with tax regulations |
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What You'll Learn
The Income Tax Department may notify you of deactivation
The Income Tax Department will notify you if your PAN card has been deactivated due to suspected fraudulent activity or misuse. This could be due to a number of reasons, such as the cardholder's death, or the card being obtained or used fraudulently. In such cases, the department will notify you of the deactivation and you will need to take steps to reactivate your card.
The department may also deactivate your PAN card if you are a foreigner who has surrendered it to prevent misuse, or if you have multiple PAN cards. In these cases, the department may notify you, but it is also possible to proactively notify the department of your intention to surrender a card.
Additionally, the Income Tax Department may notify you of deactivation if your card has not been linked to your Aadhaar card. This is a requirement as per Section 139AA(2) read with Rule 114AAA. If you do not link your PAN to your Aadhaar by the specified date, your PAN will become inoperative.
It is important to note that deactivation of your PAN card will result in significant limitations on your financial activities. You will be unable to file income tax returns, make large cash transactions, or access certain e-filing platforms. Therefore, if you receive a notification of deactivation from the Income Tax Department, it is crucial to take prompt action to rectify the issue and reactivate your PAN card.
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You can't file tax returns if it's deactivated
If your PAN card is deactivated, you cannot file tax returns. The Income Tax Department of India has recently been running a drive to deactivate multiple or fake PAN cards, which has impacted many people who have more than one PAN card. When a PAN card is deactivated, the taxpayer's income tax e-filing login is blocked, preventing them from filing IT returns on the e-filing platform of the Income Tax Department.
To reactivate a deactivated PAN card, you must write a letter to your jurisdictional Assessing Officer (AO) in the Income Tax Department requesting reactivation. Along with the letter, you must provide certain mandatory documents, including:
- A copy of the PAN card that has been self-attested.
- An Indemnity Bond in favour of the Income Tax Department.
- A copy of the Income Tax Returns filed in the previous three years from the deactivated PAN number.
Once the AO receives your request letter and is satisfied with its authenticity, the department will reactivate your PAN card within 10 to 15 business days. In some cases, the reactivation process may take up to 30 days.
It is important to note that holding more than one PAN card is prohibited under Section 139A of the Income Tax Act. Therefore, if you have multiple PAN cards, you should surrender the additional cards immediately to avoid any issues with tax filing.
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You can reactivate it in 10-15 days
The Income Tax Department deactivates PAN cards for several reasons, including duplicate or multiple PAN cards, fake PAN cards, and non-residency status of foreigners who no longer need to carry out financial transactions in India. In some cases, a genuine PAN card may be deactivated by mistake.
If your PAN card has been deactivated, you can apply for reactivation by submitting a request letter to the Assessing Officer (AO) of your jurisdiction. This letter should explain the need for reactivation and state the reason for deactivation. Along with the request letter, you must attach the following mandatory documents:
- Indemnity Bond in favour of the Income Tax Department
- Copy of PAN on which the PAN holder is regularly filing the Income Tax Returns
- Copy of the last 3 years of Income Tax Returns filed on the deactivated PAN
Once your request letter and supporting documents are received by the Income Tax Department, it typically takes a minimum of 10 to 15 days to reactivate your PAN. During this time, your request will be processed, and the documents submitted by you will be verified.
It is important to note that while your PAN is deactivated, you may face difficulties in making large cash transactions above ₹50,000. You will also be unable to log in to e-filing websites or file ITRs. Therefore, it is advisable to take the necessary steps for reactivation as soon as possible.
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Reasons for deactivation: fraud, multiple cards, non-resident
A Permanent Account Number (PAN) card is crucial for anyone engaging in financial activities in India. The PAN links all transactions made by an individual or entity, ensuring that tax evasion is minimised. It is mandatory for filing income tax returns, making large cash deposits, buying or selling property, and many other financial transactions.
Reasons for Deactivation: Fraud
The Income Tax Department regularly deactivates PAN cards found to be fake or involved in fraudulent activities. For example, someone could use another person's PAN to take out loans, leaving the original holder responsible for the repayments. Criminals can also open bank accounts with a stolen PAN and use them for fraud. PAN cardholders should therefore keep their PAN details safe and secure to protect themselves from fraud.
Reasons for Deactivation: Multiple Cards
It is illegal for an individual or company to have more than one PAN number. The penalty for having more than one PAN is Rs 10,000. The Income Tax Department may deactivate any additional PAN cards found. This usually occurs when a person loses their existing card and applies for a new one, instead of requesting a reprint.
Reasons for Deactivation: Non-Resident
Foreign nationals who no longer need to carry out financial transactions in India might have their PAN cards deactivated to avoid misuse.
If a PAN cardholder needs to resume their financial operations in India, they must reactivate their PAN card. This involves writing a request letter to the Assessing Officer of their jurisdiction, explaining the need for reactivation and stating the reason for deactivation.
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You can check the status of your PAN card online
It is important to keep your Permanent Account Number (PAN) card active if you want to continue your financial operations in India. The Income Tax Department deactivates PAN cards due to various reasons, including duplicate/multiple PAN cards, fake PAN cards, and non-residency status of foreigners who no longer need to carry out financial transactions in India.
- Visit the Income Tax e-filing website.
- Click on the 'Verify your PAN' or 'Verify PAN Status' option. This should be under the 'Quick Links' heading on the homepage.
- Enter the required details, including your PAN number, full name, date of birth, and mobile number.
- Click the 'Continue' button.
- Enter the OTP sent to your mobile number and click the 'Validate' or Continue' button.
- The status of your PAN card will be displayed on the screen.
If your PAN card is inactive or inoperative, you may need to pay a penalty and submit a request for reactivation. The reactivation process can take around 10 to 15 days.
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Frequently asked questions
When your PAN card is deactivated, your e-filing login credentials will be blocked, and you will be unable to file IT returns, check intimations or notifications, or reply to communications made by the Income Tax Department through the website. You will also be unable to make large cash transactions.
There are several reasons why your PAN card may have been deactivated. The Income Tax Department deactivates PAN cards due to duplicate/multiple PAN cards, fake PAN cards, or non-residency status of foreigners who no longer need to carry out financial transactions in India. Additionally, if your Aadhaar card is not linked to your PAN card, it will become inoperative.
To reactivate your deactivated PAN card, you will need to submit a request letter to the Assessing Officer (AO) of your jurisdiction, along with the necessary documents. These documents typically include an Indemnity Bond in favour of the Income Tax Department, a copy of your PAN, and the last three years of Income Tax Returns filed on the deactivated PAN. It usually takes around 10 to 15 days for the Income Tax Department to reactivate your PAN.
