Should the PAN card be torn and thrown away after death? Wait, first know these rules:

News India Live, Digital Desk: The bitter truth of life is that whoever has come has to go one day or the other. When someone from our family passes away, we are in deep sorrow. At such times, I don’t even feel like thinking about worldly matters or paperwork. But friends, sentiment has its place and responsibility has its place.

It is often seen that people close their bank accounts after death or the nominees withdraw their money, but PAN Card Let it remain lying in the cupboard as it is. Do you know how heavy this carelessness can cost in the future?

Today we explain to you in very simple language what should be done with the PAN card of a deceased person so that you and your family are saved from any kind of legal trouble or fraud.

1. Why is it necessary to close it? (Why Surrender?)
PAN card is a very important financial document. If the PAN card of a deceased person remains active, it may be misused. Any fraudster can take a loan, do illegal transactions or open a fake company using that PAN number. Later the notice will come to your home. Therefore, it is wise to surrender it for safety.

2. When to surrender? (no hurries!)
There is a huge catch here. As soon as someone dies, do not immediately rush to surrender the PAN card.

• Bank Accounts and Returns: First check whether the bank accounts linked to that PAN card are still open? Is that financial year Income Tax Return (ITR) Still to fill?
• If any refund is pending or any FD is to mature, keep the PAN card active until all these accounts are completed. Only once all the financial settlements are done, submit the surrender application.

3. Process to surrender PAN card
This work is not done online, for this you will have to work a little hard.

• Write an application: You will have to write a letter to the Income Tax Assessing Officer (AO) of your area.
• Give reason: Write clearly in the letter that the PAN card holder has died, all the work has been completed, hence it should be cancelled.
• Insert documents: that person with this letter Death Certificate And attach the copy of PAN card.

Is it illegal to possess PAN?
There is no strict rule by law that you have to submit it. If you want, you can keep it for records, but then you have to ensure that it is not used anywhere else. But the Income Tax Department advises that it should be closed after the work is completed.