PAN Inoperation of NRIs: CBDT directs to Intimate Jurisdictional Officer with Supporting Documents

The Income Tax Department has instructed Non-Residents of India (NRIs) to inform the Jurisdictional Assessing Officer along with relevant documents to activate their PAN (Permanent Account Number). The department has emphasized that failing to link PAN with Aadhaar before June 30th, 2023, will result in the PAN card becoming inactive.

If any Non-Resident Indian (NRI) finds that their PAN is still inactive, they are requested to notify the respective jurisdictional Assessing Officer about their NRI status, along with providing the necessary supporting documents. The list of supporting documents required to activate PAN for NRIs is as follows:

1. Copy of PAN Card; and
2. Any of the following documents:
3.  Copy of passport showing stay confirming NRI, or
4. Copy of Person of Indian Origin (PIO) card issued by Government of India, or
5. Copy of Overseas Citizen of India (OCI) card issued by Government of India, or
6. 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.

Further for information regarding Jurisdictional Assessing Officer (JAO), please visit e-filing home page and go to tab “know your AO” to find out your JAO.

According to the department Certain NRIs and OCIs have expressed concerns regarding their PANs becoming inoperative, even though they are exempt from linking their PAN with Aadhaar. Additionally, individuals who hold PANs that have become inoperative due to non-linking with Aadhaar have raised concerns about the potential consequences of this inoperability.

Consequences of Inoperative PAN

1. Pending refunds and interest on such refunds will not be issued to inoperative PANs.
2. TDS will be required to be deducted at a higher rate for inoperative PANs in accordance with section 206AA.
3. TCS will be required to be collected at a higher rate for inoperative PANs in accordance with section 206CC.

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