NRIs and OCIs have raised doubts about their PAN cards which have been addressed by the Income Tax Department of India through their Twitter page.
Apparently, their PANs have become inactive.
Read on to find out all the details!
NRIs/ OCIs Concerned About Inactive PANs
Certain NRIs/OCIs have expressed concerns about their PANs becoming inactive despite being exempt from linking their PANs with Aadhaar. Additionally, individuals whose PANs have become inactive due to non-linking with Aadhaar are worried about the potential consequences.
Income Tax Department’s Response
To address these concerns, the following clarifications have been provided on the Twitter page of Income Tax India:
The Income Tax Department (ITD) has identified the residential status of NRIs based on their previous three years’ Income Tax Returns (ITR) or information provided to the Jurisdictional Assessing Officer (JAO). PANs have been rendered inactive if these criteria are not met. NRIs with inactive PANs should contact their respective JAOs and submit supporting documents to update their residential status in the PAN database.
Information about JAOs can be found at https://eportal.incometax.gov.in/iec/foservices/#/pre-login/knowYourAO
PANs of OCIs/foreign citizens, who might have applied for PAN under resident status but haven’t corrected/updated their residential status with the JAO or haven’t filed ITR in the last three assessment years, have also been rendered inactive. OCIs/foreign citizens with inactive PANs should inform their respective JAOs and provide supporting documents to update their residential status in the PAN database.
Details of JAO can be found at – https://eportal.incometax.gov.in/iec/foservices/#/pre-login/knowYourAO
It is essential to understand that an inactive PAN is different from an inactive PAN. One can still file an Income Tax Return (ITR) even with an inactive PAN. However, there are specific consequences associated with having an inactive PAN:
i. Pending refunds and the interest on such refunds will not be issued for inactive PANs.
ii. TDS (Tax Deducted at Source) will be deducted at a higher rate for inactive PANs as per section 206AA.
iii. TCS (Tax Collected at Source) will be collected at a higher rate for inactive PANs as per section 206CC.
Further, the tweet also states, “Kindly refer to the CBDT Notification No.15/2023 dated 28th March, 2023 for details:
