As of March 31, 2024, over 74.69 crore Indians have been issued PAN cards — a key identification document not just for income tax returns, but also for banking, investments, and major financial transactions. However, what often goes unnoticed is the procedure that should follow when a PAN cardholder passes away. Ignoring this important step can open the door to financial fraud, identity misuse, and legal complications.
Experts stress that cancelling the PAN card of a deceased individual is crucial for the following reasons:
To prevent financial fraud and identity theft
To enable closure of bank and demat accounts
To avoid income tax notices or legal obligations in the deceased’s name
To legally transfer assets to rightful heirs by terminating the deceased’s financial identity
To cancel a PAN card, the legal heir must submit the following documents:
Original PAN card of the deceased
Official death certificate
PAN card of the legal heir
Proof of relationship with the deceased (e.g., Aadhaar card, heir certificate)
Written application requesting cancellation of PAN