You Can File Income Tax Returns Even If Your PAN Is Inoperative: Find Out How?

Indian government had directed its citizens to have their Pan card linked with Aadhar by June 2023, failing to comply with which would deem the PAN inoperative.

PAN Inactivity and its Effect on ITR Filing for FY 2023-24

However, those who do not have them linked and have the PAN inactive need not worry about the income tax return. As per previous clarifications by income tax department, inoperative PAN remains active.

As per the department, July 31, 2024 is the deadline for the individuals not requiring an audit for the Financial Year 2023-24 (Assessment Year 2024-25) to file their ITR.

Though the ITR can be filed, but for such cases the verification process won’t involve Aadhar OTP. Instead of this another alternate method like Electronic Verification Code (EVC) through net banking, ATM, or other approved means can be employed.

Vijay Bharech, Director, Deloitte Haskins & Sells LLP said that “One may pay the income taxes due and file the Income Tax Return (ITR) irrespective of PAN becoming inoperative”.

Abhishek Soni, CEO and Co-founder of Tax2win, said that “You can simply log in to your account on the income tax e-filing portal and follow the steps outlined for filing income tax returns. This typically involves navigating to the e-file section, selecting the option for income tax return filing, and proceeding with the necessary details and documentation”.

Consequences of Inactive PAN

On the flipside, though ITR can be filed but inactive PAN shall hamper claiming the refund or interest on any refunds. 

Vijay Bharech said that “The refund, if any is due, will not be issued to the taxpayer, and the interest on the refund shall be paid only from the date the PAN becomes operative”.

The deadline for the updated ITR is March 31.

Failing to submit the original income tax return (ITR), one still has the possibility to file an updated return before March 31, 2024. 

Taxpayers have the option to file updated returns for any of the assessment years 2021-22, 2022-23, and 2023-24.

Notably, any additional tax owed must be paid along with the updated return.