The deadline for linking Aadhaar and PAN cards is over. A PAN card that has become inoperative is not the same as an inactive PAN. On July 18, the Income Tax (IT) Department responded to taxpayers’ misunderstanding about filing Income Tax Returns (ITR).
PAN cardholders must pay a fee for reactivating their cards. Non-resident Indians (NRIs) can still use their PAN card to complete the ITR form, according to the IT department.
The Department confirmed this on Twitter, saying, “Concerns have been raised by certain NRIs/ OCIs regarding their PANs becoming inoperative, despite the fact that they are exempt from linking their PAN with Aadhaar.” Furthermore, PAN holders whose PANs have become inoperative due to the non-linking of PAN with Aadhaar have expressed worry about the consequences of PAN being inoperative.”
NRIs and Overseas Citizens of India (OCIs) who fall into the categories specified in the tweet are asked to contact their local Jurisdictional Assessing Officers (JAOs) and provide the necessary documentation to update their residence status in the database. The IT department has also provided a link to the JAO directory to assist individuals in identifying officers.
The Income Tax Department added that an inoperative PAN card has no impact on filing income tax returns. Taxpayers can still submit ITRs with an inactive PAN card, but there may be certain consequences, such as an increased tax deduction rate and a delay in refund processing.
NRIs and OCIs whose residential status has not been changed have had their cards deactivated. PAN cards of OCIs or foreign nationals who have not completed their ITR forms in the previous three assessment years have been eliminated. The Income Tax Department noted that NRIs and OCIs can keep their tax filings running smoothly if they update their PAN card database.
Aadhaar and PAN linkage is not required for people of Assam, Jammu and Kashmir, and Meghalaya, non-residents under the Income Tax Act of 1961, those above the age of eighty, and those who are not citizens of India.