NRIs and OCIs: Aadhaar-PAN linkage clarification and consequences explained.
The deadline for linking Aadhaar and PAN cards has passed, and now the Income Tax (IT) Department has clarified some key points for taxpayers regarding the filing of Income Tax Returns (ITR). It's essential to differentiate between an inoperative PAN card and an inactive one.
If your PAN card has become inoperative, you can make it active again by paying a fine. The IT department clarified that Non-Resident Indians (NRIs) can still use their PAN cards to fill out the ITR form, even if they are exempted from linking it with Aadhaar.
The IT Department issued this clarification on its official Twitter handle, addressing concerns raised by certain NRIs and Overseas Citizens of India (OCIs) about their PAN cards becoming inoperative due to non-linking with Aadhaar. Those falling under the mentioned category are advised to contact their Jurisdictional Assessing Officers (JAOs) with the necessary documents to update their residential status in the database. The department shared the link to the JAO directory to help individuals locate the respective officers.
The IT Department emphasized that an inoperative PAN card does not impact the process of filing income tax returns. Taxpayers can still file ITR with an inactive PAN card. However, they may experience some consequences, such as a higher rate of tax deduction and potential delays in refund processing.
For NRIs and OCIs who haven't updated their residential status, their PAN cards have become inactive. Also, PAN cards of OCIs or foreign nationals who haven't filed their ITR forms for the last three assessment years have been deactivated. To ensure a smooth tax filing process, NRIs and OCIs need to update their PAN card information in the database.
It's important to note that Aadhaar and PAN linkage is not mandatory for residents in the states of Assam, Jammu and Kashmir, and Meghalaya, non-residents as per the Income Tax Act 1961, individuals who are eighty years or older, and those who are not citizens of India.
Read more: Income Tax Return: Filing ITR for the first time? Know key points to remember to avoid Rs 5,000 penalty
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 "PAN card, Aadhaar linkage, Income Tax Returns, Inoperative PAN, Non-resident Indians, Overseas Citizens of India, Tax deductions")
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