NRIs and OCIs with Inoperative PAN Cards Can Still File ITR, Clarifies Income Tax Department

Inoperative PAN is Not Inactive: IT Department Provides Relief to NRIs and OCIs for ITR Filing

The Income Tax (IT) department has issued a clarification, providing relief to Non-Resident Indians (NRIs) and Overseas Citizenship of India (OCI) cardholders whose PAN cards have become inoperative. The department affirmed that despite the inoperability of their PAN cards, NRIs and OCIs can still file their Income Tax Returns (ITR). However, they must update their residential status with the Jurisdictional Assessing Officer to avoid potential consequences.

To determine the residential status of NRIs, the IT department will consider whether they have filed ITRs in the last three Assessment Years (AYs) or have informed the Jurisdictional Assessing Officer (JAO) about their residential status. Failure to meet these criteria has resulted in PAN cards being rendered inoperative. NRIs with inoperative PAN cards are advised to contact their respective JAO and submit supporting documents along with a request to update the PAN database. The contact details of the JAO can be found [provide a hyperlink to the relevant webpage].

For OCIs and foreign citizens who applied for PAN under resident status, the inoperability of their PAN cards arises if they have not corrected or updated their residential status with the JAO, or if they have not filed ITRs in the past three AYs. Similar to NRIs, OCIs and foreign citizens are urged to inform their respective JAOs about their residential status, providing necessary documentation and a request to update the PAN database.

It is important to note that having an inoperative PAN card does not mean it is inactive. Individuals can still proceed with filing their ITRs, regardless of the inoperative status of their PAN cards. However, there are certain consequences associated with having an inoperative PAN:

i. Pending refunds and the corresponding interest will not be issued for PAN cards that have been rendered inoperative. ii. Tax Deducted at Source (TDS) will be deducted at a higher rate for inoperative PANs, as per section 206AA. iii. Tax Collected at Source (TCS) will be collected at a higher rate for inoperative PANs, as per section 206CC.

To ensure a smooth tax filing process and avoid any potential complications, NRIs and OCIs are strongly advised to update their residential status with the JAO and rectify the inoperative status of their PAN cards promptly.

The IT department aims to streamline the taxation process for NRIs and OCIs and acknowledges the importance of updating PAN records accurately. By providing a clear pathway for filing ITRs, the department seeks to facilitate compliance and alleviate concerns for individuals facing PAN inoperability issues.

For further assistance or inquiries, individuals are encouraged to visit the Income Tax department’s official website or contact the department’s helpline.

About the Income Tax Department: The Income Tax department is responsible for administering and enforcing direct taxation laws and acts as the primary revenue collection agency of the Government of India. It endeavors to promote tax compliance, facilitate efficient tax administration, and provide taxpayer-friendly services to promote the growth and development of the nation.

Contact Information: [Provide relevant contact details]

Disclaimer: This article is for informational purposes only and should not be construed as legal or financial advice. Individuals are advised to consult with tax professionals or the Income Tax department for personalized guidance regarding their specific circumstances.

Sources By Agencies

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