PAN-Aadhaar Link: Income Tax Dept refuses issue Refund to NRI due to Inoperation of PAN

PAN-Aadhaar Link - PAN-Aadhaar - PAN - Aadhaar - Income Tax Department - Income Tax - Refund to NRI - Refund - NRI - Inoperation of PAN - Inoperation - taxscan

The deadline for linking the Permanent Account Number (PAN) and Aadhaar card was June 30, 2023. As previously announced by the Income Tax Department, the consequence of not linking the two is the inactivation of the PAN.

Consequently, a Non-Resident Indian (NRI) is unable to access their refund status and the refund amount due to the inactivation of the PAN resulting from the non-linking of PAN and Aadhaar.

The NRI taxpayer expressed his grievance to the income tax department via social media. Following the filing of their Income Tax Returns (ITR) for the Assessment Year 2023-24, he attempted to check the status of their refund. However, he encountered a message stating that their PAN was inoperative, thereby preventing the issuance of the refund. The message further advised them to link their PAN with Aadhaar after paying the necessary fees under section 234H.

The message exactly states that “Refund cannot be issued as PAN is inoperative, Kindly link your PAN with Aadhaar after paying requisite fees u/s 234H”.

Also another message reads as follows, “Your PAN is made inoperative as it is not linked with your Aadhaar. Some of the accesses may be limited. You can link and make your PAN operative after payment of requisite fee u/s 234H”.

Below the tweet, the Income Tax Department replied that “From 1st, July, 2023, the unlinked PAN becomes inoperative with certain consequences. The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs. 1,000. Kindly refer to the Press Release for further details regarding this: pib.gov.in/PressRelease

The press release announces the extension of the deadline for linking PAN with Aadhaar until June 30, 2023, and provides information about the associated consequences. The Income Tax department clarifies that non-residents who have informed the Department of their NRI status are exempted from the requirement of linking PAN with Aadhaar.

According to the press release “From 1st July, 2023, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative and the consequences during the period that PAN remains inoperative will be as follows:

  1. no refund shall be made against such PANs;
  2. interest shall not be payable on such refund for the period during which PAN remains inoperative;  and
  3. TDS and TCS shall be deducted /collected at a higher rate, as provided in the Act.”

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