The Income Tax Department announced on July 18 that Non-Resident Indians and foreign citizens whose permanent account numbers had become inoperative due to non-linking with Aadhaar, had to provide proof of their residential status to the jurisdictional assessing office
It is important for Non-Resident Indians (NRIs) and foreign citizens, whose PANs have become inoperative due to non-linking with Aadhaar, to make it operative again. It can be done by following a simple procedure.
The Income Tax Department announced on July 18 that Non-Resident Indians and foreign citizens whose permanent account numbers had become inoperative due to non-linking with Aadhaar, had to provide proof of their residential status to the jurisdictional assessing officer.
The step is necessary for the reactivation of their PAN (Permanent Account Number).
The department said concerns had been raised by certain NRIs/Overseas Citizens of India (OCI) regarding their PANs (Permanent Account Numbers) becoming inoperative. In a tweet, the department said it had mapped the residential status of NRIs in case they had filed ITR in any of the last three Assessment Years (AYs) or had intimated their residential status to the Jurisdictional Assessing Officer (JAO). The PANs, according to the department, had become inoperative in cases where NRIs had not updated their residential status or had not filed returns in the last three AYs.
“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,” it tweeted.
Under Income Tax laws, residents are required to link their PANs with the biometric Aadhaar. However, non-residents are not required to obtain Aadhaar
The PANs of OCIs/foreign citizens, who may have applied for PANs under resident status and had not corrected/updated their residential status to the JAO or had not filed ITR in any of the last three 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,” the department said.
An inoperative PAN is not an inactive PAN. One may file the Income Tax Return (ITR) irrespective of the PAN becoming inoperative, the department said. In case the PAN becomes inoperative, pending refunds and interest on tax refunds will not be issued, and TDS and TCS would be deducted at higher rates.
Under Income Tax laws, residents are required to link their PANs with the biometric Aadhaar. However, non-residents are not required to obtain Aadhaar.
The last day for linking the PAN with Aadhaar was June 30, 2023. From July 1, 2023, PAN has become inoperative for individuals who have failed to link it with Aadhaar. Individuals who have failed to link the PAN with Aadhaar can do so after paying penalty.
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