The Income Tax department issued a statement on Tuesday addressing the concerns of individuals with inoperative PAN Cards, ahead of the tax filing deadline on July 31. The department clarified that even with an inoperative PAN, individuals can still file their Income Tax return.
However, it was stated that there would be consequences for those who failed to link their PAN cards to their Aadhar by the end of previous month. People with inoperative PAN cards will not be eligible to receive the pending refunds and interests on those refunds. Additionally, they will have to pay a higher rate of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source).
For NRIs (Non-Residents of India) and OCIs (Overseas citizens of India) with inoperative PAN Cards, the IT department advises them to inform of their residential status to their respective JAO (Jurisdictional Assessing Officer). This should be accompanied by supporting documents to update their residential status in the PAN card database. It is to be noted that these individuals were earlier exempted from Aadhar-PAN linking.
The Income Tax Department had earlier stated that it would consider the cases where people provided consent and paid the fee but were unable to do their Aadhar-PAN linking. The deadline for linking the both with a late fine of Rs 1000, was June 30. Individuals who missed the deadline previously can still get the two documents connected by connecting with the concerned authorities and paying the required penalty.
Dear Taxpayers,
Concerns have been raised by certain NRIs/ OCIs regarding their PANs becoming inoperative, although they are exempted from linking their PAN with Aadhaar.
Further, PAN holders, whose PANs have been rendered inoperative due to non-linking of PAN with Aadhaar,…— Income Tax India (@IncomeTaxIndia) July 18, 2023