NRIs With Inoperative PANs To Update Residential Status, Clarifies Income Tax Dept.
Mariya Paliwala
25 July 2023 10:48 AM IST
According to the Income Tax Department, NRIs whose PANs are inoperative are asked to inform their respective Jurisdictional Assessing Officer (JAO) of their residential status and provide any necessary documentation in order to have their residential status updated in the PAN database.It is clarified that an inoperative PAN is not an inactive PAN. One may file the Income Tax Return...
According to the Income Tax Department, NRIs whose PANs are inoperative are asked to inform their respective Jurisdictional Assessing Officer (JAO) of their residential status and provide any necessary documentation in order to have their residential status updated in the PAN database.
It is clarified that an inoperative PAN is not an inactive PAN. One may file the Income Tax Return (ITR), irrespective of PAN becoming inoperative.
The NRIs have raised concerns regarding their PANs becoming inoperative, although they are exempted from linking their PAN with Aadhaar.
The PAN holders, whose PANs have been rendered inoperative due to non-linking of PAN with Aadhaar, have expressed concern over certain consequences of PAN becoming inoperative.
Consequences of Inoperative PAN
The pending refunds and interest on refunds will not be issued to inoperative PANs.
TDS will be required to be deducted at a higher rate for inoperative PANs in accordance with section 206AA.
TCS will be required to be collected at a higher rate for inoperative PANs in accordance with section 206CC.
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