Inoperative PAN is not inactive: IT dept on ITR filing; relief to NRIs, OCIs

NRIs/OCIs with inoperative PAN cards can still file ITR but must update their residential status with the Jurisdictional Assessing Officer.

Are you an NRI/OCI whose PAN card has become inoperative, despite being exempted from linking PAN with Aadhaar? The Income Tax department clarified this concern on Tuesday adding that those with inoperative PAN cards can still file ITR.

PAN cards were mandatory to be linked with Aadhar cards by June 30. (Mint)

Intimate your residential status to JAO

For Non-Resident India (NRIs), the IT department has mapped their residential status based on whether they have filed Income Tax Returns (ITR) in the last three Assessment Years (AYs) or if they have informed the Jurisdictional Assessing Officer (JAO) about their residential status. PAN cards have been rendered inoperative if these criteria are not met.

NRIs with inoperative PAN cards are requested to inform their respective JAO about their residential status, providing supporting documents and a request to update the PAN database. Details of the JAO can be found HERE.

For Overseas Citizenship of India (OCIs)/foreign citizens who applied for PAN under resident status and have not corrected/updated their residential status with the JAO or have not filed ITR in the last three AYs, their PAN cards have been rendered inoperative.

OCIs/foreign citizens are requested to inform their respective JAO about their residential status, providing supporting documents and a request to update the PAN database.

Inoperative PAN vs. Inactive PAN: Clarification

The department clarified that an inoperative PAN is not an inactive PAN. One may still file the Income Tax Return (ITR), irrespective of PAN becoming inoperative.

Consequences of having inoperative PAN

i. Pending refunds and the corresponding interest will not be issued to PAN cards that have been rendered inoperative.

ii. Tax Deducted at Source (TDS) will be deducted at a higher rate for inoperative PANs, in accordance with section 206AA.

iii. Tax Collected at Source (TCS) will be collected at a higher rate for inoperative PANs, in accordance with section 206CC.