IT Department Clarifies What NRIs With Inoperative PAN Cards Can Do

The Income Tax Department has responded to the concerns raised by non-resident Indians (NRIs) and overseas citizens of India (OCIs) regarding the inoperability of their PAN cards after the deadline for PAN-Aadhaar linking. Although NRIs and OCIs were not required to link their Aadhaar with their PAN cards, many expressed worries about their PAN cards becoming inoperative after June 30.

If NRIs have filed Income Tax returns in any of the past three years or have informed their residential status a Jurisdictional Assessing Officer, the Income Tax Department has assessed their residential status. 

However, if any of the mentioned criteria are not fulfilled, their PAN cards have been rendered inoperative. In a tweet, the department stated that NRIs whose PAN cards are inoperative should inform their respective JAO about their residential status, provide supporting documents, and request an update to their residential status in the PAN database. Information regarding the jurisdictional assessing officer can be found on the Income Tax portal.

When foreign citizens and OCIs (Overseas Citizens of India) apply for PAN cards under resident status but fail to correct or update their status with the Jurisdictional Assessing Officer or haven't filed an Income Tax Return (ITR) in any of the previous three assessment years, their PAN cards become inoperative. 

To resolve this, these OCIs or foreign citizens need to update their residential status with their respective JAO, providing supporting documents. The Income Tax Department clarified that an inoperative PAN does not mean an inactive PAN. They stated that individuals can still file their Income Tax Returns regardless of the PAN card being inoperative. 

However, individuals with inoperative PAN cards will not receive pending refunds or interest on such refunds. Additionally, a higher rate of tax deductible at source and tax collected at source will apply to transactions involving inoperative PANs.

 

Also Read: ITR filing 2023: These senior citizens do not have to file income tax returns. Details here