NRIs with Inoperative PAN are Requested to Intimate Residential Status to AO | CBDT

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  • Last Updated on 19 July, 2023

NRIs with Inoperative PAN

News, dated 18-07-2023

Non-resident Indians (NRIs) and Overseas Citizenship of India (OCIs) have raised concerns regarding their PANs becoming inoperative, despite being exempted from linking PAN with Aadhaar. Additionally, PAN holders whose PANs have become inoperative due to non-linking with Aadhaar have expressed concerns about the consequences.
In light of this, the following clarifications are provided by the Income-tax Dept. on its Twitter handle:

  1. The Income Tax Department has mapped the residential status of NRIs based on their filed income tax returns (ITR) in the last three assessment years or if they have informed their Jurisdictional Assessing Officer (JAO) about their residential status. PANs have been rendered inoperative if any of these criteria are not met. NRIs with inoperative PANs are requested to inform their respective JAOs about their residential status along with supporting documents, requesting an update in the PAN database.
  2. Individuals can still file their Income Tax Returns (ITR). Only following are the consequences of ‘inoperative’ PAN:
    • Pending refunds and interest on such refunds will not be issued to inoperative PANs; and
    • Tax will be required to be deducted/collected at a higher rate for inoperative PANs in accordance with section 206AA/206CC.
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