Arthgyaan

Supporting everyone's personal finance journey

What should NRIs do if your PAN has become inoperative?

This article shows the solution in case NRIs suddenly find their PAN number has become inoperative after 30th June 2023.

What should NRIs do if your PAN has become inoperative?


Posted on 21 Jul 2023
Author: Sayan Sircar
Tags: Tags NRI ;  Tax
5 mins read
šŸ“¢Join 2300+ readers on WhatsApp and get new post notifications!

This article shows the solution in case NRIs suddenly find their PAN number has become inoperative after 30th June 2023.

What should NRIs do if your PAN has become inoperative?

This article is a part of our detailed article series on the issues tax-payers are facing due to not having PAN-Aadhaar linkage. Ensure you have read the other parts here:

šŸ“š Topics covered:

What is the news?

After pushing back the deadline multiple times, the central government has started marking inoperative PAN numbers that are not linked to Aadhaar. This action was taken after the latest PAN-Aadhaar linkage deadline expired on 30th June 2023. As a result, many NRIs found out the hard way, while filing income tax return, that their PAN cards are now inoperative.

NRIs are not expected to be affected by the PAN-Aadhaar linkage deadline and, subsequently, PAN becoming inoperative since they are not expected to have Aadhaar numbers.

The NRIs PAN cards have become inoperative, i.e. cannot be used temporarily and not deactivated which could be permanent.

What are the problems that will happen if PAN becomes inoperative?

Once PAN becomes inoperative, the following issues will be seen:

  • Income tax filing (ITR) cannot be done
  • Pending refunds and interest on such refunds will not be issued to inoperative PANs
  • TDS will be required to be deducted at higher rates, like 20%, for inoperative PANs under section 206AA for cases like property sales, rental income, capital gains on mutual funds and NRO deposits
  • TCS must be collected at a higher rate (double of regular rate or 5%, whichever is higher) for inoperative PANs under section 206CC for deals like property purchase

Source: link

Did you know that we have a private Facebook group which you can join for free and ask your own questions? Please click the button below to join.

Why are NRIs affected since Aadhaar is not mandatory for them?

NRIs are affected due to non-linkage of PAN and Aadhaar since they have not told the income tax authorities that they are now NRIs and, therefore

  • not required to have Aadhaar
  • not required to PAN with Aadhaar

NRIs who have been impacted here have either

  • not filed an ITR in the last 3 years
  • not informed their Jurisdictional Assessing Officer (JAO) that they are now NRIs
  • or belong to the OCIs/foreign citizen category who have applied for a PAN number under the resident tax-payer category

Consultation with Arthgyaan

What should NRIs do now to make their PAN numbers operational?

PAN Aadhaar - locate Jurisdictional Assessing Officer

We will cover this process step-by-step:

  • Locate your Jurisdictional Assessing Officer (JAO): Visit the Know Your Jurisdictional Assessing Officer page to locate the contact details i.e .email address of your Jurisdictional Assessing Officer
  • Place and application: Along with proper documentation like passport, address proof, OCI card and related items, you should apply for your resident status to be changed to Non-Resident
  • Once the application is processed, the PAN will be reactivated

Alternatively, on the next trip to India, NRIs can take an online Aadhaar application, physically submit their biometrics in India and then link their new Aadhaar number with PAN to make it operational again.

What is the escalation path if your JAO is not responding to your application?

As per this tweet, taxpayers can

share their details via email at adg1.systems@incometax.gov.in & jd.systems1.1@incometax.gov.in along with a copy of the correspondence sent to JAO

Which are the other places where NRIs must update their residential status?

The standard list comprises bank accounts (NRE/NRO), demat, mutual funds etc. The complete list is here: How should an NRI handle investments and accounts in India before shifting?.

What's next? You can join the Arthgyaan WhatsApp community

You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.

To understand how this article can help you:

If you have a comment or question about this article

The following button will open a form with the link of this page populated for context:

If you liked this article, please leave us a rating

The following button will take you to Trustpilot:

Discover an article from the archives

Worked out case studies for goal-based investing

Previous and next articles:

<p>This article shows you how to buy Sovereign Gold Bonds (SGB) from the stock market using your demat account.</p>
Gold
How to buy SGB from the stock market?

This article shows you how to buy Sovereign Gold Bonds (SGB) from the stock market using your demat account.

Published: 19 July 2023

8 MIN READ

<p>This article shows you how to know the status of your income tax refund from Income Tax India website.</p>
Tax Step by step
How to check your income tax refund status?

This article shows you how to know the status of your income tax refund from Income Tax India website.

Published: 23 July 2023

3 MIN READ

Latest articles:

<p>This article shows how quickly you can pay off your home loan, and even save a lot of interest, by increasing your EMI steadily year-on-year.</p>
House Purchase Loans
How much time and interest do you save if you pay off your home loan using a step-up EMI?

This article shows how quickly you can pay off your home loan, and even save a lot of interest, by increasing your EMI steadily year-on-year.

Published: 1 May 2024

4 MIN READ

<p>This article explores the probabilities of gold price movement, both up and down, from current price levels.</p>
Gold Market Movements
Gold touched ā‚¹75,000 per 10 gm. Should you buy gold or sell gold at this point?

This article explores the probabilities of gold price movement, both up and down, from current price levels.

Published: 28 April 2024

3 MIN READ

Topics you will like:

Asset Allocation (21) Basics (8) Behaviour (12) Budgeting (12) Calculator (25) Case Study (6) Children (17) Choosing Investments (40) FAQ (12) FIRE (13) Gold (22) Health Insurance (5) House Purchase (30) Insurance (16) International Investing (12) Life Stages (2) Loans (18) Market Data (7) Market Movements (17) Mutual Funds (46) NPS (7) NRI (19) News (18) Pension (8) Portfolio Construction (53) Portfolio Review (27) Reader Questions (8) Real Estate (7) Research (5) Retirement (38) Review (15) Risk (6) Safe Withdrawal Rate (5) Set Goals (28) Step by step (15) Tax (59)

Next steps:

1. Email me with any questions.

2. Use our goal-based investing template to prepare a financial plan for yourself.

Don't forget to share this article on WhatsApp or Twitter or post this to Facebook.

Discuss this post with us via Facebook or get regular bite-sized updates on Twitter.

More posts...

Disclaimer: Content on this site is for educational purpose only and is not financial advice. Nothing on this site should be construed as an offer or recommendation to buy/sell any financial product or service. Please consult a registered investment advisor before making any investments.

This post titled What should NRIs do if your PAN has become inoperative? first appeared on 21 Jul 2023 at https://arthgyaan.com


We are currently at 396 posts and growing fast. Search this site:
Copyright Ā© 2021-2024 Arthgyaan.com. All rights reserved.