Many NRIs face the issue of their PAN card becoming inoperative, which can create obstacles when trying to open bank accounts, make investments, or even claim refunds in India. The situation may seem confusing at first, but resolving it is quite straightforward if you understand the reason behind the inoperativeness and the steps to reactivate it. Here’s everything you need to know about why your PAN may become inoperative and how to make it operative again.
How to Check if Your PAN is Inoperative
Checking the status of your PAN is simple. You can log into the Income Tax Department’s filing website and look for a disclaimer that indicates your PAN is inoperative. If you don't see any such notice, you can go to the "My Profile" section to verify your PAN status.
In some cases, even if your PAN appears to be active, it might show as inoperative when you download your 26AS statement. It can be listed as both active and inoperative, which can be puzzling.
Why Does PAN Become Inoperative?
The most common reason for a PAN becoming inoperative is the non-linking of the PAN with Aadhaar. For Indian residents, linking Aadhaar with PAN is mandatory. However, for NRIs, linking Aadhaar with PAN is also required if the NRI has an Aadhaar number. If Aadhaar isn’t linked, the PAN becomes inoperative.
In certain cases, if your NRI status isn't updated with the Income Tax Department, your PAN may be flagged as inoperative.
What Happens If You Don’t Have Aadhaar?
If you are an NRI who does not have an Aadhaar card, there's no need to worry. Aadhaar is not mandatory for NRIs, and your PAN should remain operative if your status has been updated correctly with the Income Tax Department. However, if your NRI status has not been updated, your PAN could be flagged as inoperative.
How to Reactivate Your PAN?
Reactivating your PAN is a relatively simple process, and it can be done by following these steps:
- Identify Your PAN Jurisdiction:
The first step is to find out your PAN jurisdiction. This information can be found in the "My Profile" section on the Income Tax Department’s website. - Find the Contact Information of the Jurisdictional Officer:
After identifying the jurisdiction, you need to locate the email address of the jurisdictional officer. - Send an Email Request:
Draft a polite and clear email to the officer requesting them to make your PAN operative again. Be sure to attach the following documents: - A copy of your PAN card
- Proof of your NRI status (for example, a copy of your passport or visa)
- Details about the number of days you stayed in India during the current year and the preceding four years.
Typically, it takes 7 to 10 days for your PAN to be reactivated. It is advisable to seek professional assistance to ensure the email and application are drafted appropriately to avoid any delays.
The Importance of Keeping Your PAN Active
Having an operative PAN card is essential for several reasons. For NRIs, an operative PAN allows you to file tax returns on time, claim refunds, and invest in India. Without an operative PAN, these essential activities may become problematic, leading to unnecessary delays and financial complications.
Conclusion
Inoperative PAN cards can be a source of frustration for NRIs, but resolving the issue is simple once you understand the process. By ensuring that your PAN is linked with Aadhaar and your NRI status is updated with the Income Tax Department, you can keep your PAN active and avoid future problems. If needed, seek professional assistance to navigate the process smoothly and efficiently.
Stay updated with your PAN status and ensure it remains operative so you can enjoy the benefits of smooth financial transactions and investments in India.
Disclaimer: Aim of this article is to give basic knowledge about the topic to people who are not in touch with Indian tax norms. When anybody is dealing with these kinds of cases practically, he shall consider all relevant provisions of all applicable Laws like FEMA/Income Tax/RBI /Companies Act etc.
If you have any further questions or need assistance, feel free to reach out to us at admin@ushmaassociates.com or info@nricaservices.com, or contact us via call/WhatsApp at +91 9910075924.
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