There maybe two reasons for the cancellation of a pan card - either you have more than one pan card or the pan card holder is a deceased. For the first reason, if you are holding more than one pan card than the solution is very easy
How to surrender PAN card online?
For surrender of a duplicate PAN card, you need to fill the details such as your surname, first name, middle name, date of birth, father name. Your contact details like your phone number, email address, the pan card number you want to retain in the respective fields.
How to physically surrender a PAN card of a dead person?
For surrender of a dead person's PAN Card, there is no online method. You need tovisit the income tax office after death of an individual. You can get the form for cancellation of the PAN card with similar fields mentioned above.
You need to submit a letter including details of the deceased such as name, date of birth, pan card along with a copy of the death certificate. This needs to be attached with the letter and handed over to the income tax assessing officer.
But, if the dead person is a tax payer then it is mandatory to file his Income Tax Returns (ITR) and then cancel the said PAN Card. There is a section in Income Tax that specifically mentions the rules under this situation.
The entire details are available under section 159 of the Income Tax Act, 1961 (Act). According to the section 159 of the Income Tax Act, 1961 (Act), if a person dies, then his legal representatives shall be liable to pay any sum which the deceased would have been liable to pay.
And the ITR must be filled from 1st of April to the death date of the card holder and that you can file online or offline as the method that we normally use to the file our returns . And the one who is filing the returns need not pay bear the tax burden. The income tax liability can be paid from the deasesed persons assets. However, it is important to to note that is the tax liability is in excess of the assets, then the onus to pay does not rest with the legal heir.
How to file the ITR on behalf of the deceased pan card holder?
The first step is to get the Legal Heir Certificate. According to a law below documents, are considered as valid:
- Legal Heir Certificate issued by a court or local revenue authorities
- Certificate issued by local revenue authorities as you are Surviving family member
- The registered WILL
- Pension certificate, issued by State/Central Govt.
- Calculate the income of the deceased like an individual calculation collect the below details as a proof.
- Collect the bank statements of a deceased pan card holder.
- Collect Form 16 and 16A.
- Get the notarized affidavit for filing IT return on behalf of a deceased.
So documents required for filing IT Return on behalf of the deceased are as below:
a) Copy of Death Certificate
b) PAN Card copy of deceased pan card holder
c) PAN Card of the legal heir (with self-attested)
d) Legal Heir Certificate
e) Notarized affidavit
Once you completed above steps then you have to file ITR. There are two types to file. Either you can submit all details with scan copies online or you can visit directly to the income tax office nearby.
What happens if ITR not filed?
If the legal heir misses filing the ITR of the dead or deceased person, the tax authorities could custom the same penalty as on the deceased. The responsibility of the legal successor would be limited to the assets of the dead which might come into his/her ownership. For example, if a man/woman receives Rs 10 lakh as his/her part of his parent's estate and his parent's tax liability was Rs 15 lakh, the above cannot be made responsible for paying more than Rs 10 lakh. It is advised to pay the ITR of the dead or deceased person as early as possible to avoid penalty.