Income Tax Return: I-T Department Clarifies Inoperative PAN Issue For NRIs/OCIs

The IT department issues clarifications after concerns were raised by certain NRIs/ OCIs regarding their PANs becoming inoperative

The Income Tax department has cleared all concerns of NRIs (Non-Residential Indians), OCIs (Overseas Citizens of India), and foreign citizens regarding inoperative PAN as they have not linked it with their Aadhaar card.   

On Tuesday, the Income Tax department shared a tweet acknowledging the concerns of the PAN holders whose PAN are inoperative due to non-linking with Aadhaar.   

The department stated that their officials have mapped the residential status of NRIs if they have filled ITR in the last three AYs or have intimated their residential status to the JAO (Jurisdictional Assessing Officer).  

In case any of these actions were not performed, then the PAN is rendered inoperative.   

The department requests NRIs in such situations to intimate their residential status to their respective JAO with all essential documents and update their residential status in the PAN database. JAO details are available here--https://eportal.incometax.gov.in/iec/foservices  

“The OCIs/foreign citizens are requested to intimate their residential status to their respective JAO along with supporting documents with a request to update their residential status in the PAN database,” said the IT department.   

Can income tax return be filed without PAN?

As per the information shared, the department clarifies that an inoperative PAN does not indicate an inactive PAN and mentioned that one may file the ITR regardless of their PAN being inoperative.  

What are the consequences of an inoperative PAN?

The following are the causes of an inoperative PAN:  

  • Pending refunds and interest on such refunds will not be issued to inoperative PANs.

  • TDS will be required to be deducted at a higher rate for inoperative PANs in accordance with section 206AA.

  • TCS will be required to be collected at a higher rate for inoperative PANs in accordance with section 206CC.  

The IT department had announced June 30 as the last date to link PAN with Aadhaar for all Indians and the last date to file Income Tax Returns is July 31.  

Also Read: ITR Filing 2023: 5 Questions To Ask Before Filing Your Income Tax Return

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Aditi Shah
Aditi Shah is a Mass Media graduate specialized in Advertising. She is a pr... more
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