As we know the due date to link Aadhar and PAN ended on 30.06.2023 and those who have not linked Aadhar and PAN till 30.06.2023, their PAN would become inoperative from 01.07.2023.
To know more about Linking PAN and Aadhar CLICK HERE: Last date for linking of PAN-Aadhaar extended till 30.06.2023 – Taxontips
Various people were exempt from Linking of PAN and Aadhar and list of which is as under:
(ii) Not a citizen of India
(iii) age > 80 years as on date
(iv) state of residence is ASSAM, MEGHALAYA or JAMMU & KASHMIR
The first category of persons who were exempt from Linking PAN and aadhar were non-residents as they cannot get Aadhar in India being a non-resident. Accordingly the Non-resident Indian were expecting that they are not required to link PAN and Aadhar.
However, in July when the non-residents were filing their return of income they got an update on e-filing portal that their PAN number is inoperative and all the non-residents were shocked as to why their PAN has become inoperative.
What does PAN becoming inoperative mean:
If the PAN of an individual becomes inoperative it means that
1. His PAN number does not exist.
2. He would be restricted from making further investments.
3. In case of TDS deduction it would show that his PAN is invalid and higher rate of TDS would be suggested.
However, luckily due to some relaxation in the portal they are being allowed to file income tax return however that could stop anytime soon.
The probable reasons for making the PAN inoperative for non-linking of Aadhar could be as under:
One of the most prominent reason for PAN of non-resident becoming inoperative is that PAN of such non-resident is still lying with local jurisdiction of AO and not with international tax ward. Such non-resident had also selected their residential status on e-filing portal as non-resident still their PAN were made inoperative.
The probable solution for above problem is:
1. Change the jurisdiction of PAN from Local AO to International tax ward.
2. Raise a grievance with E-filing portal stating that the assessee is a non-resident and his PAN should not be made inoperative as he is falling within the exemption list. E-filing portal might also ask to write to AO but they will resolve the issue themselves after few days.
Many non-resident PAN have again been made operative, so if your PAN is still inoperative you can try the above steps.
Guidance on above article for Indian Income Tax by:
Naman Maloo (C.A., B.Com)
He is currently working as Partner – Direct Tax with a renowned firm in Jaipur having experience in dealing Assessments before Income Tax authority, Tax Audit, International Taxation, Tax planning for NRI, Business planning and consultation.
E-mail: firstname.lastname@example.org | LinkedIn: Naman Maloo
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