Simplified Laws Guide to Taxation and Legal Concern The issue of linking Aadhar to PAN is still a matter of concern, particularly among NRI/OCIs. Some of you have approached me, stating that you are facing challenges in receiving tax refunds due to the non-linking of Aadhar. This brief note aims to give the background of this issue and guide you on resolving it if you’ve encountered such problems.
Background
The Indian Income Tax Department mandated the linking of Aadhar Card to PAN numbers for all Resident PAN Cardholders, with a deadline of 30th June 2023. However, this requirement does not apply to NRI/OCIs.
On 1st July 2023, following the expiration of the linking deadline, the tax department classified all PAN cards not linked to Aadhar as “INOPERATIVE.” Despite the exemption for NRI/OCI, their PAN numbers were also marked as inoperative.
Consequences of INOPERATIVE PAN Status
Primarily, two issues impact NRI/OCI:
(a) Tax Refund: They are not receiving tax refunds.
(b) Inability to Apply for a Lower Tax Certificate: This affects transactions such as property sales or rental income.
How to Check Your PAN Status
Some of you have reported that your PAN appears as “ACTIVE” when logged into the IT portal. However, “ACTIVE” differs from “INOPERATIVE” status.
To check, log in to the IT portal – go to Profile – then Personal Details.
Below this, you’ll find a paragraph stating, “- “The details as per your Profile and PAN may not be matching. You may ignore minor variations in address. In case you wish to update you may do so at your option. To view Click here”. Please ‘Click here’ to view your Profile page. Check for the Inoperative status.
If it shows as INOPERATIVE, then send a letter to the following mail id’s.
Sample Letter to the Tax Department
Here is the draft letter (you can modify it as suits you) which you can send
From: your registered email ID as per the income tax portal
Subject: Request to Activate PAN ALxxxxxx (mention your PAN)
To: adg1.systems@incometax.gov.in, jd.systems1.1@incometax.gov.in
Respected Sir,
My PAN No. ALXXXXXX status is “inoperative” on the Income Tax portal.
I am an NRI/OCI (modify based on your status) residing in [state and country]. I do not possess an Aadhar Card, as NRIs/OCIs are exempted from linking Aadhar to PAN numbers. Considering my residential status as NRI/OCI, I kindly request you to activate my PAN.
I have attached my PAN and US passport copy (modify as per country) for your reference.
Thanks and Regards,
Your Name
Address
Attachments:
- Colour copy of PAN card
- Colour copy of Passport
Hope this helps. In case you need any assistance on this issue, you can reach me at prasad@balakrishnaandco.com or WhatsApp to 9845721255
