Inoperative PAN is not inactive PAN, says I-T Dept amid concerns over ITR filing
PTC Web Desk: The Income Tax Department has provided clarification stating that an inoperative PAN (Permanent Account Number) is not an inactive PAN. In a statement, the department mentioned that individuals can still file their Income Tax Returns regardless of their PAN status being inoperative.
Additionally, the Income Tax Department outlined three consequences of having an inoperative PAN. One of these consequences includes pending refunds, with the related interest not being issued to PANs that are marked as inactive.
Notably, on July 18, 2023, the Income Tax Department issued a notification requesting Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) to update their residential status in order to reactivate their PANs (Permanent Account Numbers).
The Income Tax Department recently addressed the concerns raised by certain Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) regarding the inoperative status of their Permanent Account Numbers (PANs), despite being exempted from linking PANs with Aadhaar. The department also addressed the concerns of PAN holders whose cards became inoperative due to non-linking with Aadhaar. In addition, the department provided clarity on the process of reactivating PAN cards for NRIs and OCIs.
How To Reactivate Inoperative PAN
According to the Income Tax Department, the process of making PAN operative again can be completed within 30 days from July 1. To reactivate the PAN, individuals need to inform the prescribed authority about their Aadhaar number and pay a fee of Rs. 1,000.
To reactivate inoperative PAN by linking it with Aadhaar, individuals can use the e-Pay Tax feature available on the Income Tax e-filing portal. Click on "Link Aadhar" in the Profile Section of the Dashboard on the income tax e-filing portal. Enter your PAN and Aadhaar Number and select 'Continue to pay through e-Pay Tax.' Select AY 2024-25 and choose Payment Type "Other Receipts (500)" before proceeding. Complete the payment process, and once the fee is paid, link Aadhaar number to PAN using the e-Filing Portal.
- With inputs from agencies
