When a relative or loved one dies, handling his/her financial records is one of the key responsibilities. One of such records is the PAN card, or Permanent Account Number, and it is attached to several financial operations like tax payments, bank accounts, and investments. Though there is no legislation that says a PAN has to be cancelled as soon as the person dies, it can help avert misuse and other legal issues.
A PAN card is valid even after death, provided it is not formally cancelled. If the card is valid, it can be utilised by fraudsters to open bank accounts, avail loans, or even get tax refunds. This would result in identity theft/misuse, or even tax notices in the name of the deceased individual. To avoid this, PAN cancellation ensures that the financial identity of the individual is formally removed from the system.
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Take Care Of Tax Problems First
Prior to filing for cancellation of PAN whichever tax issues the deceased person had are to be resolved. These are filing his/her last return of income tax and verifying if they had any outstanding dues or refund. For this, the legal heir needs to himself/herself register himself/herself as representative assessee on the income tax portal.
Documents You Will Need
To initiate the cancellation process, you will be required to have some important documents. These are:
Copy of the deceased individual's PAN card (if available)
Copy of the death certificate
Cover letter making a request for cancellation
Copy of your PAN card
Document of relation with the deceased individual, for example, legal heir certificate, Aadhaar card, or will
These documents help the income tax department verify your identity and your right to make the request.
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How To Cancel Through The Assessing Officer
The second step is to write a formal letter to the jurisdictional assessing officer of the income tax department. The officer is assigned depending on the last known address or income class of the deceased individual.
It should contain the PAN and complete name of the deceased, date of death, and a request for cancellation. It should be signed by you as the legal representative or heir and should contain your own PAN details and relation to the deceased.
Once your letter is ready, attach the necessary documents to it and send them to the appropriate assessing officer. Either call in at the office or send by registered post.
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How To Find The Right Assessing Officer
If you do not have information regarding the assessing officer, you can use the "Know Your AO" facility on the income tax department's website. You can input the PAN of the deceased and ascertain the appropriate officer to contact.
Alternative Method Through Form 49A
If it is not possible on your part to appear before the assessing officer, you may opt to apply for cancellation in Form 49A. Form 49A is normally used for PAN corrections or modifications and may be downloaded from the NSDL website.
In the application, mark the box stating the PAN is to be cancelled and provide details of the deceased person. Send all the documents requested, such as the death certificate and evidence of your identity and relationship. Stamp on the envelope "Application for cancellation of PAN—Deceased" and submit the application to your nearest NSDL or UTIITSL PAN service centre.
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What Happens After You Make The Request
Once the application is received, the documents will be authenticated. If all goes well, the PAN will be closed. Sometimes, you may not get a formal acknowledgement, so it would be advisable to verify with the assessing officer or the service centre. If you have applied through NSDL, you can get a tracking number for application status.
Key Points To Remember
PAN cancellation is not done online on the e-filing website
You need to call the assessing officer or the form-based offline procedure
In case the dead person had a tax and refund liability, sign up on the tax website as his representative before cancellation
Avoid using a deceased person's PAN for a transaction since it's illegal and can attract legal action
Canceling a PAN can look like an easy process, but it is part of ensuring that the identity of the deceased remains safe and his or her finances are closed down cleanly. By using some papers and an easy process, families can steer clear of future complications.
