Is your PAN Card Blocked? Step by Step Process for NRI’s & OCI’s to Activate their PAN Card Without an Aadhaar?

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More than 10 Crore PAN Cards have been made inactive (as per Financial Express). After the expiry of deadline to link PAN with Aadhaar on June 30, 2023, it may happen that an NRI finds that his/her PAN is inoperative. If you find yourself in such a similar situation, then here is what you can do to make your PAN operative again. Do note that an NRI can still file ITR with inoperative PAN subject to certain conditions. In case the NRIs have an Aadhaar, the exemption does not apply, and they will have to link their PAN. If they miss the deadline, they can still link it by paying a penalty.

Introduction

As of June 30, 2023, the deadline to link PAN (Permanent Account Number) and Aadhaar in India has passed. This has left many Non-Resident Indians (NRIs) with inoperative PAN cards, especially those who did not update their residential status in the PAN Database or do not possess an Aadhaar card. Fortunately, the income tax department has clarified the process for NRIs to activate their inoperative PAN without the need to link it to Aadhaar. In this guide, we'll walk you through the step-by-step process to reactivate your PAN card as an NRI or OCI (Overseas Citizen of India).

Documents NRI’s & OCI’s need to submit to make your PAN operative

To make the PAN operative again, an NRI needs to submit certain documents along with the application such as:
 

• Copy of PAN Card (self-attested)
• Copy of Passport (self-attested)

             a. Copy of passport showing stay confirming NRI, or

b. Copy of Person of Indian Origin (PIO) card issued by Government of India, or

c. Copy of Overseas Citizen of India (OCI) card issued by Government    of India, or

d. Copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by “Apostille” (in respect of countries which are signatories to the Hague Convention of 1961) or by the Indian Embassy or High Commission or Consulate in the country where the applicant is located or authorized officials of overseas branches of Scheduled Banks registered in India.

e. Details of stay outside India

Steps to Activate PAN without Linking to Aadhaar

Step 1: Identify Your Jurisdictional Assessing Officer

Visit the website where you can find your assessing officer's email address.

Enter your PAN and mobile number (either Indian or overseas).

Verify your identity by entering the OTP received on your mobile number.

Once verified, note down the email address of your jurisdictional assessing officer, as you will need it for the next step.

Step 2: Compose an Email to Your Jurisdictional Assessing Officer

Send an email to your jurisdictional officer requesting the update of your residential status in the PAN database and the activation of your PAN.

IT department says, “Please write to us with your/ taxpayer’s details, along with colour-scanned copy of PAN and copy of documents in support of non-resident status (passport showing period of residence outside India) via email at adg1.systems@incometax.gov.in & jd.systems1.1@incometax.gov.in Our team will look into it.”

Is it Mandatory for NRIs to Link their PAN & Aadhaar?

While the Income Tax Act allows NRIs to link their PAN and Aadhaar, it is not compulsory for them to do so. However, it is essential for NRIs to update their residential status on the Income Tax portal to avoid PAN becoming inoperative. Failing to inform the Income Tax Department about their residential status and the non-linkage of PAN and Aadhaar may result in the PAN card becoming inoperative.

Why PAN Will Be Inoperative from July 1, 2023?

The Indian tax authority mandated the linking of PAN cards, which serve as identifiers for taxpayers, with Aadhaar cards, a proof of identity and residence. The deadline for this linkage was June 30, 2023. Failure to link both cards by this date rendered the PAN "inoperative," posing challenges for individuals in conducting financial transactions in India. However, NRIs who missed the deadline can still link their cards by paying a penalty.

How to Check PAN-Aadhaar Linking Status?

Visit the Income Tax e-Filing portal on the income tax website.

Navigate to the "Quick Links" section on the left side and click on "Link Aadhaar Status."

Enter your 10-digit PAN number and Aadhaar number.

Select "View Link Aadhaar Status."

If your Aadhaar number has already been linked, it will be displayed on the screen. If not, follow the provided steps to complete the linking process.

Consequences of Inoperative PAN

Having an inoperative PAN card can lead to various consequences, including:

• Limited Access to Financial Services
• Non-processing of Income Tax Refunds
• Increased TCS and TDS Rates
• Restricted Investment Options

An inoperative PAN is not an inactive PAN. One may file the Income Tax Return (ITR), irrespective of PAN becoming inoperative. Only following are the consequences of ‘inoperative’ PAN:

• Pending refunds and interest on such 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.

Kindly refer to the CBDT Notification No.15/2023 dated 28th March, 2023 for details:

https://incometaxindia.gov.in/communications/notification/notification-15-2023.pdf

 

Disclamer: The opinion above, are as per the understanding of the Tax Laws, Compliances, & Circulars /supported by various case Laws and years of experience of the Author. Please consult your Tax Advisor before taking any decision on this article, because, the facts of each matter will be different and laws ‘may’ apply differently. The Article is just for a general explanation, to quell the anxiety and rumours in the community. Any loss or penalty or expenses of any nature whatsoever, will not be the liability of the Author.

Tax Assist is an initiative of Alfred Jordan and specializes in International & NRI Taxation. Tax Assist has offices across the Country and services Indians located globally. Alfred Jordan group provides assistance to Clients across 40 Countries on Tax, Law, Valuation, Forex, Remittance, DTAA & other Cross Border compliances. For any queries or assistance you can mail at nri@TaxAssist.in. 

Tax Assist is an initiative of Alfred Jordan and specializes in International & NRI Taxation. Tax Assist has offices across the Country and services Indians located globally. Alfred Jordan group provides assistance to Clients across 40 Countries on Tax, Law, Valuation, Forex, Remittance, DTAA & other Cross Border compliances. For any queries or assistance you can mail at nri@TaxAssist.in. 

 

 

 

 

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