NRIs asked to approach tax officers with residential status proof for PAN

The Income Tax Department on Tuesday said Non-Resident Indians (NRIs) and foreign citizens whose permanent account numbers have become inoperative due to non-linking with Aadhaar should submit proof of their residential status to the jurisdictional assessing officer for operationalising the PAN.

The department said concerns have been raised by certain NRIs/Overseas Citizens of India (OCIs) regarding their PANs (Permanent Account Numbers) becoming inoperative.

In a tweet, the department said it has mapped the residential status of NRIs in case they have filed ITR in any of the last three Assessment Years (AYs) or have intimated their residential status to the Jurisdictional Assessing Officer (JAO).

The PANs, according to the department, have become inoperative in cases where NRIs have not updated their residential status or have not filed returns in the last three AYs.

"The NRIs whose PANs are inoperative are requested to intimate their residential status to their respective JAO along with supporting documents with a request to update their residential status in the PAN database," it tweeted.

The PANs of OCIs/foreign citizens, who may have applied for PANs under resident status and have not corrected/updated their residential status to the JAO or have not filed ITR in any of the last three AYs, have been rendered inoperative.

"The OCIs/foreign citizens are requested to intimate their residential status to their respective JAO along with supporting documents with a request to update their residential status in the PAN database," the department said.

An inoperative PAN is not an inactive PAN. One may file the Income Tax Return (ITR) irrespective of the PAN becoming inoperative, the department said.

In case the PAN becomes 'inoperative', pending refunds and interest on tax refunds will not be issued, and TDS and TCS would be deducted at higher rates.

Under Income Tax laws, residents are required to link their PANs with the biometric Aadhaar. However, non-residents are not required to obtain Aadhaar.

The last day for linking the PAN with Aadhaar was June 30, 2023. From July 1, 2023, PAN has become inoperative for individuals who have failed to link it with Aadhaar.

Individuals who have failed to link the PAN with Aadhaar can do so after paying penalty.