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PAN is Deactivated by the Department

What to do if your PAN is Deactivated by the Income Tax Department?

Introduction

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application.

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A PAN facilitates the department to link all transactions of the “person” with the Department. These transactions include filing of income tax returns, tax payments, TDS/TCS, correspondence etc. It has been noticed that the Income Tax Department have been deactivating PAN of all income tax assesses holding more than one PAN during any time in the past.

De-activation of PAN card  may unfortunately cause certain hurdles. As in case the Income Tax Department de- activates the PAN which the assesse used for the purpose of filing his income tax returns, the assesse will not be able to file his returns now.

The PAN once de-activated  by the  Income Tax Department blocks the e- filing login and hence the assesse will not be able to do any income tax filing of returns or even electronically respond to online communications/ intimations/ Notices by the Income Tax Department.

Step wise process for What can you do if, your PAN is Deactivated by the Income Tax Department:

Communication to the AO

In case you PAN is de activated by the Department you are required to communicate with a letter to your AO  under whose  jurisdictional you belong in the Income Tax Department for activation of your PAN.

Submission of Relevant Documents to the AO

After the letter is communicated indicating the activation of your PAN you are further required to attach relevant documents for the PAN activation. Following are the Documents that are to be attached

      1. Copy of PAN card which the assesse uses to regularly to file the Income Tax Returns
      2. Copy of ITRV for the last 3 years filed with the Income Tax Department on the PAN so de- activated
      3. Indemnity Bond in favour of the Income Tax Department. An Indemnity Bond serves as a surety bond in order to ensure assurance that the agreement will be fulfilled.

Time Limit for Reactivating the PAN by the Department

The time limit taken by the Income Tax Department for re-activating the PAN after submission of letter to the Department is approximately 15 working days.

Response to online intimations/ correspondence by the Department if E- login has been blocked:

Where the e- login has been blocked and the assesse is required to reply to the online intimation / correspondence done by the Income Tax Department, the asssesse is required to approach the AO under whose jurisdiction the assesse belongs and thereby address his concerns and also needs to apply for reactivation of PAN Card.

Further, the assess can file a manual submission against the intimation/ correspondence by the Department until the reactivation of PAN is in process. It is to be noted that once the reactivation of PAN is done the assesse obligation to reply online and respond to the intimation by the Department still prevails and s to be fulfilled.

Penalty Imposition for holding more than one PAN

A person cannot hold more than one PAN card at a time. In case a person at any point of time holds more than one PAN card the additional  PAN has to be surrendered. Holding of more than one PAN card at a time is a legal offence and can be penalised as the Income Tax Department can impose legal penalties regarding the same.

In accordance to Section 272B of the Income Tax Act, 1961 a person may be asked to pay a penalty of Rs. 10000/-if found holding multiple PAN registered in the name of one person.

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