Pan Card: Deactivating documents issued in a person’s name after his death is a mandatory process, and this includes PAN cards as well. Even though it is not legally mandatory to cancel the PAN card of the deceased, not doing so can lead to serious problems like tax fraud, illegal transactions, or identity misuse in the future.
There is even a risk of legal action. Therefore, it becomes an important responsibility for the family. In this article, we will know in detail why it is necessary to cancel the PAN card of the deceased, what documents are required for this, and what things should be kept in mind so that any kind of trouble can be avoided in the future.
Why is it necessary to cancel a PAN card after death
Deactivating a PAN card after death is extremely important for several reasons:
Protection of the financial identity of the deceased
A PAN card is the main basis of a person’s financial identity. If it is not deactivated, fraudsters can use it to open fake bank accounts, take loans, or commit other financial crimes.
Closing bank and demat accounts
It is necessary to clarify the status of the PAN card to close the bank accounts and demat accounts of the deceased or to transfer them to the name of the legal heir. If the PAN remains active, there may be complications in closing these accounts.
Transfer of financial legacy
The status of the PAN card is important in the process of transferring the financial legacy of the deceased to the rightful heir. A deactivated PAN card ensures that there is no unauthorized activity in property transfer.
Preventing misuse of PAN card
The PAN card can be misused in many ways, including creating fake companies, making anonymous transactions, or making illegal investments. Cancellation can eliminate these possibilities.
Avoiding notice from the Income Tax Department
If any unauthorized transaction takes place from the PAN card of the deceased, the family may receive a notice from the Income Tax Department in the future, which may lead to unnecessary hassle and legal action.
Prevention of fraud
Cancelling the PAN card is necessary to prevent fraudulent activities like opening fake bank accounts or taking loans. Criminals often use the PAN cards of deceased persons as they are active and do not get noticed immediately.
Points to keep in mind
While cancelling the PAN card, the legal heir must keep in mind that the last Income Tax Return of the deceased must also be filed. This ensures that all tax liabilities in the name of the deceased are completed. Apply for PAN cancellation only after completing this task. This is an important step so that there are no tax-related problems in the future.
These documents will be required while cancelling a PAN card
The process of cancelling the deceased’s PAN card requires some important documents, which you should keep ready:
Original PAN card of the deceased
Copy of death certificate
Application for cancellation of PAN card
Copy of PAN card of the applicant (legal heir)
Proof proving relationship with the deceased
Process of cancelling PAN card
Although there is no direct online process given on the Income Tax Department website for cancelling a PAN card after death, it is usually an offline process that may include the following steps:
Write a letter addressed to the Income Tax Department on plain paper, clearly mentioning the name of the deceased, PAN number, date of death, and request to cancel the PAN card.
Attach copies of all the required documents mentioned above (death certificate, original PAN of the deceased, PAN of legal heir, relationship proof) with the letter.
Submit this application and attached documents to the Income Tax Department office of your jurisdiction. You can also send it by registered post.
After submitting the documents, do not forget to take an acknowledgment, it is important for future reference.
After submitting, monitor your PAN card status online for some time.