What Will Happen If Your PAN Card Is Deactivated?
A PAN card (Permanent Account Number) plays a crucial role in managing financial and tax-related activities in India. It is mandatory for filing income tax returns and conducting high-value transactions. If a PAN card is deactivated, individuals may face serious financial and legal difficulties.
When a PAN card is deactivated, the individual will no longer be able to file Income Tax Returns (ITR). Additionally, higher Tax Deducted at Source (TDS) may be applied to income, leading to increased tax deductions. Banking activities can also be affected, as opening new bank accounts or carrying out major financial transactions may become difficult or impossible.
Deactivation of a PAN card can also impact investments and property transactions. Activities such as purchasing or selling property, investing in mutual funds, shares, or bonds, and applying for loans or credit cards may be restricted. In some cases, penalties may be imposed if an inactive PAN is used for financial transactions.
There are several reasons why a PAN card may be deactivated. Common causes include holding more than one PAN card, failure to link PAN with Aadhaar, submission of incorrect or duplicate details, or prolonged inactivity. To avoid these issues, it is important to keep PAN details updated and compliant with government regulations.
However, there is no need to worry if your PAN card is active. An active PAN ensures smooth financial transactions and uninterrupted tax compliance. To prevent future deactivation, ensure that your PAN is linked with Aadhaar and that all personal details are accurate and up to date.
