How to Activate a Deactivated PAN Card?

The PAN card is widely used across different sectors, from dealing with financial transactions to adhering to tax compliances. Considering its diverse usage for financial purposes, this important document was deactivated for many users.

Owing to various reasons, possession of more than one PAN Card has been made illegal in the country, and the Government of India has deactivated many PAN cards.

Keep reading to know how to activate inactive PAN Card, reasons for deactivation, prevention method, and much more.

Team Digit

Check PAN Card Active or Inactive Status
What to Do if PAN Card is Deactivated?
Reasons Why PAN Card Gets Deactivated
Indemnity Bond for PAN Reactivation Format
Format for Writing a Letter to the AO
Income Tax Department Deactivating PAN Cards
How to Prevent?
Frequently Asked Questions

How to Check PAN Card Active or Inactive Status?

With the help of your PAN card number and a valid mobile number, you can check the status of your PAN card online, at the convenience of your home, by following the steps given below:

Step 1: Visit the official website for Income Tax e-filing and tap on the “Verify PAN Status” option under the “Quick Links” section on the portal's homepage.

Step 2: Enter your PAN card number and other relevant details, such as name, date of birth, valid mobile number, etc., and press the “Continue” button.

Step 3: An OTP (One Time Password) will be sent to your mobile number which you must enter and choose the “Validate” option.

Step 4: Your current PAN card's active or inactive status will be displayed on your screen.

What to Do if PAN Card is Deactivated?

In case, upon checking the status of your PAN Card, you find out that your PAN card has been deactivated, you must write a letter addressed to the jurisdiction AO (Assessing Officer) in the Income Tax Department stating your request for reactivation of your PAN Card.

Along with the letter, you must not forget to attach the required documents stating that your PAN card was actively used for filing tax returns. The IT department may take 10-15 working days to accept and process your reactivation request.

For a hassle-free reactivation of your PAN Card, you must attach a photocopy of your PAN Card, indemnity bond, and copy of the last 3 Income Tax returns filed along with your letter to the AO.

Reasons Why PAN Card Gets Deactivated

There are different reasons for the deactivation of PAN cards by the Income tax department, some of which include the following:

Noncompliance with the regulations, such as holding duplicate or multiple PAN cards under the same individual.

An inactive PAN card that has not been used for a long period of time in financial transactions may be deactivated.

To avoid misuse of the PAN card obtained illegally, the IT department may deactivate a fraudulently obtained PAN card.

A PAN card holder's death also leads to the PAN card's deactivation.

Foreigners who intend to discontinue their financial transactions give up their PAN card to avoid misuse.

What is the Indemnity Bond for PAN Reactivation Format?

INDEMNITY BOND

I, …………., R/o ……….., do hereby solemnly affirm and declare as under:

My PAN is:

I am regularly assessed in your ward/ jurisdiction with PAN:

I have only one PAN, i.e - has been used for the last many years for filing my income tax returns.

I do not have any other PAN with me, if any is allotted in your records, kindly deactivate the same.

I undertake to indemnify the Income Tax Department for any loss that may be caused in the future.

Kindly activate my PAN:

The above statements are true to the best of my knowledge and belief.

(Deponent)

VERIFICATION

Verified at New Delhi on this ………..(date) Day of ………. (month), ….(year), that the contents of the above affidavit are true and correct to the best of my knowledge and belief. No part of it is false and nothing material has been concealed therefrom.

(Deponent)

Format for Writing a Letter to the AO in the Income Tax Department

LETTER TO THE AO

The Assessing Officer of Income Tax, Dated: ………..

Ward No: ……..

Civic Centre

New Delhi - 110002

Sub: Request for Activation of PAN Card No: ……. In the name of Mr. ……………

Respected Sir/ Madam,

Through this application, I bring to your notice that PAN Card No: ……… was deactivated, and the current status on your Income Tax Department website is also deactivated, as the message “Your PAN card is deactivated by the department” is displayed while logging in. Due to this, I cannot file the Income Tax Return for the Assessment Year 20XX-XX.

In this regard, I request you please look into the matter as soon as possible and activate my PAN card status to enable me to file my income tax return for the assessment year 20XX-XX. The activation will also help me in migration to GST.

For activation of my PAN card, I am enclosing the following documents:

Photocopy of PAN card
Indemnity bond
Copies of the last 3 ITR files

Please do what is necessary as soon as possible and help me comply with the IT department's norms.

Details concerning the PAN card are mentioned in the Subject.

Name on PAN Card: ………

Father’s Name: ……..

Date of Birth: ……….

Residential Address: …………..

Yours faithfully,

……………….

Why is the Income Tax Department Deactivating PAN Cards?

Recently, the Income Tax Department of India effectively drove to deactivate people's PAN cards with duplicate or multiple PAN cards, as many people have multiple PAN cards, which is illegal in India.

A deactivated PAN card also blocks access to the e-filing login, which can create a hassle when filing income tax returns. Users with a deactivated PAN card cannot access the e-filing portal and cannot avail of various services like filing IT returns, viewing intimations, and e-response to ITD communication.

How to Prevent Your PAN from Deactivation?

Deactivation of PAN cards by the Income Tax Department is always due to an underlying reason; sometimes, it may happen by mistake. To keep your PAN card from getting deactivated, you must ensure to:

File your IT returns annually without any delay
Link your PAN with your Aadhaar card at the earliest
Check your PAN card status at the e-filing portal regularly

PAN card deactivation can lead to delays in financial transactions and other related work. Thus, it is necessary that you check the status of your PAN card on the e-filing portal from time to time.

If your card has been deactivated, you must follow the mentioned procedures without any delay and ensure that you do not hold multiple PAN cards.

FAQs about Activating the Deactivated PAN Card

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How long does it take to activate a PAN card that is not in use?

Activating a PAN card to use for investments, financial transactions, fixed deposit placements, opening DeMat accounts, etc., takes around a month.

What happens if a PAN card is not in active use?

Limitations on transactions and hikes in TDS rates result from a non-active PAN card. Also, linking non-active PAN cards with aadhaar cards attracts penalties that may be paid online.

What is the fee charged for the PAN card reactivation process?

As per the notification of CBDT, a payment of ₹1000 is required via the e-filing portal to link PAN to aadhaar and make it operative within 30 days.

How to know if my PAN card is active in status?

To check PAN card activate or deactivate status, you must visit the official portals of NSDL or UTI and under the PAN verification section, enter the required details to get the status of your PAN card displayed on the screen.

Is it possible to deactivate the PAN card?

To deactivate or cancel the current PAN card, one must submit a letter to the jurisdiction AO seeking the cancellation of their PAN.

Is it allowed to have two or more PAN cards?

It is illegal to have more than one PAN card in India. The Income Tax Department deactivates the PAN card of an individual with duplicate or multiple PAN cards and also imposes a penalty.

What is the status of a dormant or inoperative PAN card?

If the PAN card is not linked to the Aadhaar card, its status is inoperative or dormant. For this, you must pay the fine on the e-filing portal and submit a request for the linking of the same.

How can I know if my PAN Card is linked with Aadhar or not?

You can know if your PAN and Aadhar are linked by visiting the Income Tax e-filing website, going to ‘Link Aadhar Status’, and entering the details.