It may happen that an NRI finds that his/her PAN is inoperative, after the expiry of the deadline to link PAN with Aadhaar on June 30, 2023. If you find yourself in such a similar situation, then here is what you can do to make your PAN operative again. Do note that an NRI can still file ITR with an inoperative PAN subject to certain conditions.

Non-resident Indians (NRIs) according to the Income-Tax Act, 1961, are exempt from linking PAN with Aadhaar if they do not have Aadhaar.

NRIs whose PAN has become inoperative can file an application with their Jurisdictional Assessing Officer stating that linking of PAN and Aadhaar is not required for them, and also submit copies of their PAN and passport showing details of stay outside India. Based on their request, and after due diligence by the Assessing Officer, the PAN will be made operative.

The Jurisdictional Assessing Officer details can be found out about an assessee by visiting the following link:-

https://eportal.incometax.gov.in/iec/foservices/#/pre-login/knowYourAO

Details Required:

• Copy of PAN Card (Self-attested)
• Copy of Passport (Self-attested)
• Details of Stay outside India.

How long does it take for the change of residential status?

Once the jurisdictional assessing officer is satisfied with the information provided by the taxpayer, they will initiate the process of updating the status from resident to NRI. The process may take 30 days from the receipt of all information that the officer finds satisfactory. However, the time period may vary from case to case.

Can an NRI file ITR with an inoperative PAN?

The Income Tax Department has clarified that an NRI can still file income tax return even if the PAN becomes inoperative. However, the consequences of an “inoperative” PAN are:

• 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

Under Income Tax laws, residents are required to link their PANs with Aadhaar using biometric authentication. However, non-residents are exempt from this requirement and are not obligated to obtain an Aadhaar card.

The deadline for linking PAN with Aadhaar was June 30, 2023. Starting from July 1, 2023, PAN has been deemed inoperative for individuals who failed to link it with Aadhaar. Individuals who have not linked their PAN with Aadhaar can still do so after paying a penalty.

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