Filing ITR is a necessary financial responsibility that individuals should fulfill to stay compliant with the law, establish financial credibility, and avoid penalties and interest. (Representative image)
ITR Filing: The IT department said that an inoperative PAN is not an inactive PAN.
Inoperative PAN ITR Filing: The Income Tax department on Tuesday provided clarification in response to concerns raised by PAN (Permanent Account Number) holders, whose PANs have been rendered inoperative due to non-linking of PAN with Aadhaar. Also, it explained the issues of specific Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) regarding the inoperability of their PAN cards. The department also clarified on the inoperative PAN card and its impact on filing income tax return (ITR).
“Concerns have been raised by certain NRIs/ OCIs regarding their PANs becoming inoperative, although they are exempted from linking their PAN with Aadhaar. Further, PAN holders, whose PANs have been rendered inoperative due to non-linking of PAN with Aadhaar, have expressed concern over certain consequences of PAN becoming inoperative,” IT department said in a tweet.
Also Read: Missed PAN-Aadhaar Link Deadline? Don’t Panic! Here’s Your Next Move
The last date to link PAN with Aadhaar was June 30, 2023. If you have not linked your PAN with Aadhaar by this date, your PAN has become inoperative from July 1. This means that you will not be able to use your PAN for certain financial transactions.
Inoperative PAN And Filing ITR | Inoperative PAN Is Not Inactive PAN
The IT department said that it is clarified that an inoperative PAN is not an inactive PAN. One may file the income tax return, irrespective of PAN becoming inoperative. However, it added that the consequences of inoperative PAN would still apply;
- 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.
On the concerns raised by NRIs/OCIs, the department said, “concerns have been raised by certain NRIs/ OCIs regarding their PANs becoming inoperative, although they are exempted from linking their PAN with Aadhaar.”
Also Read: Aadhaar-PAN Linking Not Mandatory For These Individuals, Check Details Here
It added that the department has mapped the residential status of NRIs in case they have filed the ITR in any of the last 3 AYs or they have intimated their residential status to the Jurisdictional Assessing Officer (JAO). The PANs have been rendered inoperative, in case any one of the above-mentioned criteria is not met.
The NRIs whose PANs are inoperative 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.
Details of JAO can be found at – https://eportal.incometax.gov.in/iec/foservices/#/pre-login/knowYourAO
The department added that the PANs of OCIs/foreign citizens, who may have applied for PAN under resident status and have not corrected/updated their residential status to the Jurisdictional Assessing Officer (JAO) or have not filed ITR in any of the last 3 AYs, have been rendered inoperative.
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.
PAN is a 10-digit alphanumeric number that is issued by the Income Tax Department of India to individuals, firms, and companies.
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