When someone in the family dies, handling their finances and legal documents becomes a big responsibility. Among those, cancelling the PAN card of the deceased person is very important. If not done, it can lead to misuse or fraud in the name of the person who has passed away.
The PAN (Permanent Account Number) is a key identity document used for tax purposes in India. If it remains active after a person’s death, it may be wrongly used for illegal financial activities. That is why the Income Tax Department has given a straightforward process for PAN card cancellation in such cases.
Let’s understand in simple steps how the legal heir can cancel the PAN card of the deceased and what documents are needed.
Why It’s Important to Cancel a PAN Card After Death
A PAN card is linked to many financial activities like:
- Bank accounts
- Income tax returns
- Mutual funds and stock trading
- Property purchases
If the card stays active even after death, anyone can misuse it for:
- Taking loans in the deceased’s name
- Opening fake bank accounts
- Doing fraud in tax matters
So, cancelling the PAN ensures no one misuses the deceased’s identity. It also clears the name from tax records and avoids future notices from the Income Tax Department.
Who Can Apply to Cancel the PAN Card?
Only the legal heir or close family member (like spouse, son, daughter, brother or sister) can apply for cancellation. But before that, they must:
- File the final ITR (Income Tax Return) of the deceased
- Pay any due tax on behalf of the person
If these steps are missed, the PAN will remain active and cause problems in future.
How to File ITR for the Deceased Person
The heir must register as a legal representative on the Income Tax e-filing website to file the income tax return after someone’s death.
Documents needed for registration:
- Death certificate
- PAN of the deceased
- PAN of the legal heir
- Legal heir certificate (issued by a court or local authority)
- Affidavit notarized (if their certificate is not available)
After submitting these documents:
- Login to the e-filing portal using your PAN.
- Go to “Authorized Partners” > “Register as Representative”.
- Fill details and upload documents.
- After approval, you can file the ITR for the deceased from April 1 of the same financial year.
How to Apply for PAN Cancellation
Once the ITR is filed and all dues are paid, you can cancel the PAN. There is no online form yet, so the application must be submitted offline.
Here’s how to do it:
- Write a letter to the deceased person’s Assessing Officer (AO).
- Mention these details in the letter:
- Name of the deceased
- PAN number
- Date of birth and death
- Your relationship with the person
- Reason for cancellation (death)
- Attach these documents:
- Death certificate copy
- Copy of PAN card of deceased
- Your PAN card copy
- Legal heir certificate or affidavit
- Submit the application to the Assessing Officer in your region.
Once submitted, the officer will verify the details. If everything is in order, the Income Tax Department will officially cancel the PAN card and give a receipt.
How to Find the Jurisdictional Assessing Officer
To know where to apply, you must find out under which Assessing Officer (AO) the PAN was registered.
Follow these steps:
- Visit: https://incometaxindia.gov.in/pages/jurisdiction.aspx
- Enter the deceased’s PAN number
- You will see details like:
- Officer’s name
- Office address
- Phone number
You can visit or send the application to that address.
Things to Keep in Mind Before and After Cancellation
- File ITR before starting cancellation
- Use correct AO details for smooth processing
- Keep copies of all documents
- Check with CA or legal advisor in case of confusion
Once PAN is cancelled:
- The person’s PAN cannot be used again
- Financial identity is removed from active records
- Legal heirs can manage inheritance or property transfers more easily
When Is PAN Card Cancellation Not Required?
If the deceased person:
- Did not have a PAN
- Had no taxable income
- Never filed any ITR
Then, no tax return or cancellation may be needed. Still, if any financial document includes PAN, you should check with a tax consultant or bank.
Sources: Moneycontrol Hindi, Income Tax Department India
Disclaimer: This article is meant for informational use only. Readers should consult with a certified tax consultant or legal advisor before taking action based on this information.
