Aadhaar is a unique identification number used as valid ID and address proof, while PAN is essential for filing taxes, making bank deposits, buying property, and more. These personal documents contain sensitive information, such as KYC details, date of birth, and tax-related information. Notably, these documents do not automatically become invalid upon a person’s demise. Therefore, it is essential to understand how to handle them and what actions to take if these are of a deceased family member.

What Is The Use Of These Documents?

Aadhaar: Aadhaar is increasingly used as a KYC document ranging from opening bank accounts, obtaining phone connections, applying for government subsidies on facilities like LPG, availing student IDs, applying for loans, and more.

Permanent Account Number (PAN): PAN is mandatory for filing tax returns, depositing more than Rs 50,000 in a bank account in a single day, opening a demat account, purchasing property, vehicles, precious jewellery, etc., and completing the e-KYC process for investments.

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Do Aadhaar And PAN Automatically Become Invalid After A Person's Death?

Aadhaar and PAN do not automatically become invalid upon a person’s death. These documents remain valid until explicitly deactivated or surrendered.

According to the Unique Identification Authority of India (UIDAI), Aadhaar is issued solely for identifying living individuals, and there is no provision to record a person’s death in its system. UIDAI’s FAQ states, “Currently, UIDAI does not have a provision for recording the death of a person.” Additionally, the Registrar of Births and Deaths currently lacks a mechanism to receive and deactivate Aadhaar before issuing a death certificate.

Similarly, PAN cards are issued without an expiry date and remain valid even after the cardholder’s death.

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Should Family Members Surrender These Documents?

Since PAN is essential for filing ITRs and conducting various financial transactions, it is advisable to retain it until all financial matters are resolved. This includes filing and processing the deceased’s last ITR and ensuring any refunds are credited. Notably, the Income Tax department can reopen the assessment for up to five years three months from the end of the assessment year when the return was filed. So, only when all settlements are complete, the PAN card can be surrendered to the Income Tax Department.

For Aadhaar, family members can lock the Aadhaar number of the deceased to prevent misuse. There are many passwords or OTPs which are sent to Aadhaar-linked mobile numbers so it is prudent to retain these documents to prevent misuse and facilitate financial settlements before surrendering them.

Areez Gazdar, Partner, Veritas Legal, a law firm, says, “Currently, there is no mechanism to receive the Aadhar details of deceased persons under the Registration of Births and Deaths Act, 1969 for the registration of births and deaths, to deactivate Aadhaar”. So, “It is advised that the biometrics linked to an Aadhar of the deceased should be locked at the earliest by the legal heirs should lock the biometrics through the UIDAI website, by submitting the death certificate and providing other supporting documents”.

For PAN surrender he says, “Even though surrendering a PAN card after death of a person is not mandatory, it may be surrendered by making an application to the Assessing Officer (AO) under whose jurisdiction the PAN card is registered”.

He suggests that the legal heirs should retain the original copies of these documents, since in practice, they may be useful in instances, such as, changing address in bank accounts of the deceased, transferring title of property owned by the deceased, etc.”

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Key Points to Remember: 

• There is no penalty for not surrendering these documents after a person’s death

• Retain the PAN and Aadhaar safely to avoid complications if ITR assessments, unclaimed shares, or unclaimed bank deposits arise later

• Keep the documents securely stored with the death certificate for future reference.