How to cancel a PAN after death of the PAN holder
While it is important to have a PAN, it is also equally important to cancel one that is allotted under certain circumstances such as on the death of the PAN holder.
Who does it?
Legal heirs or relatives of the deceased can apply to the income tax authorities to cancel the PAN. However, before applying, if the deceased was a taxpayer, the legal heirs would have to first file income tax returns on behalf of the deceased and clear all dues.
To find out to which AO the return and the cancellation application must be submitted, one can visit the following link: https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/KnowYourJurisdictionLink.html?lang=eng
Filing of return
Tax return of the deceased should be filed from 1 April of the relevant financial year till date of death. Copies of legal heir certificate, death certificate, PAN of the deceased as well as the person filing the return should be attached along with the certificate. A notarized affidavit should also be attached. The return can be filed online or in person.
Application to cancel
Once the return is filed and all tax dues paid, one can make a written application to the relevant AO for cancellation of PAN. Details such as deceased’s PAN, date of birth and death must be provided. An acknowledgement is given on submission of application. The IT department will scrutinize the application. Once found in order, the PAN will be cancelled.
Points to note
1. The person can pay taxes of the deceased from the estate of the deceased person.
2. One can also visit Aaykar Sampark Kendra in order to make an application for cancellation.
(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)