How to Activate Your PAN If It Has Been Deactivated

As we are aware that, CBDT has notifies Income Tax Rule 114AAA prescribing  that permanent account number (PAN) will become inoperative if  a person, who has been allotted PAN as on the 1st day of July, 2017 and is required to intimate his Aadhaar number under section 139AA(2), has failed to intimate the same on or before the 31st day of March, 2020. In this article we are covering procedure to reactivate PAN along with format of letter and indemnity bond, etc.

Procedure to Reactivate Your PAN

1. Once, PAN is de-activated by department, income tax e-filing login of assessee also gets blocked

2. To Activate your PAN again do following:

3. Write an Application to your AO (in duplicate) for activation of your PAN. Following documents need to be attached to application:

1. Indemnity Bond in favour of the Income Tax Department.

2. Copy of PAN on which the PAN holder is regularly filing the Income Tax Return.

3. Copy of last 3 years Income Tax Returns filed on the PAN de-activated.

4. Reactivation of PAN is 10-15 days process for Income Tax Department

5. If you have received any notice/intimation from ITD for which an online response needs to be filed but your e-filing login is blocked then you should file that physically to your AO and as your PAN gets activated file that in online mode too.

6. There can be a scenario where you haven’t filed earlier returns then in that case add another declaration in the Indemnity bond explaining the scanerio.

Format of Letter To AO

The Accessing Officer of Income Tax,                Dated:********

Ward No. ****

Civic Centre

New Delhi-110002

Sub: Request for Activating 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 the Income Tax Department website is also Deactivated as message “Your PAN card is deactivated by department” is being displayed while login. Due to this I am unable to file the Income Tax Return for the Assessment Year 2020-2021.

In this regard I request to you to please look into matter and activate my PAN card so as to enable me for Income Tax Return filling for the AY 2020-2021. The activation will also help me in migration to GST.

For the Purpose of activation of PAN Card, I am enclosing the following documents

1. Photo copy of my PAN CARD

2. Indemnity Bond and

3. Copies of last 3 years ITR filed as enclosure to this application are not available since my Income for last 3 Assessment Year was below taxable limit. In lieu of these documents I have added another declaration in the Indemnity Bond enclosed in this letter vide point A.

Kindly do the needful at the earliest and help me in being compliant with other laws also.

Details in respect of the PAN mentioned in Subject

1. Name in PAN Card: ***************

2. Father’s Name : *************

3. Date of Birth: *************

4. Residential Address : **********************

Yours faithfully,

***************

Format of Indemnity Bond

(Include these 7 Points if You do not have last 3 year ITR Copies)

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

1. My PAN is: **********

2. I am regularly assessedin your ward/jurisdiction with PAN: **********.

3. I have only one PAN i.e********** which isused for last many years for the purpose of Income Tax Procedures and Proceedings, if any.

4. I do not have any other PAN with me neither I applied for any other PAN, if any other PAN is allotted in your records, kindly deactivate the same and activate the PAN for which I have submitted the Application.

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

6. Kindly activate my PAN: ****************.

7. I also declare that my income for earlier years for which I didn’t filed my return was below taxable limit. Therefore, I do not have copies of Income Tax Return for last 3 years as aksed by the Income Tax Department.

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

(Deponent)

VERIFICATION

Verified at New Delhi on this 08th day of February, 2020, that above contents 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)

PAN Provisions

Who Shall Get PAN

• Person if his total income > maximum amount which is not chargeable to income-tax
• Person, if total income of any other person in respect of which he is assessable > maximum amount which is not chargeable to income-tax
• Person carrying on any business or profession whose sales/turnover/gross receipts are or is likely to exceed Rs. 5 lakh
• Person who is required to furnish a return u/s 139(4A)
• Class of person that CG notifies by whom tax is payable under this Act or any other law e.g. GST Law
• Other persons notified by CG
• Person applying voluntarily

Facts of PAN

• Persons to whom PAN under new series has already been allotted shall not apply for such number again. No person who has already been allotted a PAN under the new series shall apply, obtain or possess another PAN.
• Person Possessing a duplicate PAN card is offence in the eyes of law and invites invokes a penalty of Rs 10,000.
• Government recently deleted approx. 11.56 lacs duplicate PANs
• Major Problems are duplicate PAN (person having more than one PAN) and Fake Pan (Person do not exist for such PAN)

Why Duplicate PAN

1. People who lost their PAN cards simply apply for fresh ones without going for filing FIR and Reprint of existing PAN

2. Person who did not received original PAN due to courier agency failure , impatiently applied a fresh one.

3. Personal Vendetta

Why Fake Pan

Though having least chances of having it but still tax evasion is the main reason for same

Government Remedial Actions

Extract of Section 139AA.

Quoting of Aadhaar number.

“139AA. (1) Every person who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number—

(i)  in the application form for allotment of permanent account number;

(ii)  in the return of income:

Provided that where the person does not possess the Aadhaar Number, the Enrolment ID of Aadhaar application form issued to him at the time of enrolment shall be quoted in the application for permanent account number or, as the case may be, in the return of income furnished by him.

(2) Every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to such authority in such form and manner as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette:

Provided that in case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be 32[made inoperative after the date so notified in such manner as may be prescribed].

(3) The provisions of this section shall not apply to such person or class or classes of persons or any State or part of any State, as may be notified by the Central Government in this behalf, in the Official Gazette.

Explanation.—For the purposes of this section, the expressions—

(i)  “Aadhaar number”, “Enrolment” and “resident” shall have the same meanings respectively assigned to them in clauses (a), (m) and (v) of section 2 of the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016 (18 of 2016);

(ii)  “Enrolment ID” means a 28 digit Enrolment Identification Number issued to a resident at the time of enrolment.”

What 139AA will do

1. Weed out Duplicate and Fake PAN in circulation.

Cancellation or Deactivation of Duplicate PAN

1. As per recent media reports, Government recently deactivated approx. 11.56 lacs duplicate PANs.

2. You can use above procedure to activate your PAN Again

Replaced with Amendments