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Pandya, who sustained a blow on his right shoulder during team's training session in the ongoing third Test here, was picked for the first time in Tests.
But he didn't play in any of the three Tests so far against England.
Rahul played the second match at Visakhapatnam in which he got injured. India won the second match to lead the five-match series 1-0.
"BCCI medical team confirms that India all-rounder Hardik Pandya sustained a blow on his right shoulder during a training session in Mohali. He has been released from the Indian Test team and will consult a specialist to decide the future course of action," the BCCI said in a statement.
"Batsman KL Rahul is also released from the squad to recover from his left forearm injury. He is expected to regain his fitness for the fourth Test match of the Paytm Test series against England to be held in Mumbai from December 8," the board statement added.
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