In the Indian financial landscape, PAN (Permanent Account Number) cards serve as a crucial tool for taxpayers, including Non-Resident Indians (NRIs). One of the recent regulatory updates has linked the status of PAN cards to Aadhaar. The discontinuation of this linkage has led to PAN holders’ status changing from “Active” to “Inoperative”. Fortunately, even inoperative PANs can still be used to file Income Tax Returns (ITR). The “inoperative” status can also be rectified, and we will walk you through this process in this article.
Analysis
The amendment to the PAN card status has posed some challenges for NRIs. If an NRI’s PAN is still deemed inoperative, they are advised to communicate their NRI status to their respective jurisdictional Assessing Officer, supported by necessary documentation.
Here’s a brief outline of the documentation required for NRIs to make their PAN operative again:
1. A copy of the PAN Card
2. Any one of the following documents:
- A copy of the passport validating NRI status
- A copy of the Person of Indian Origin (PIO) card issued by the Government of India
- A copy of the Overseas Citizen of India (OCI) card issued by the Government of India
- A copy of any other national or citizenship Identification Number or Taxpayer Identification Number duly attested either by “Apostille” (for countries that are signatories to the Hague Convention of 1961) or by the Indian Embassy, High Commission, or Consulate in the resident country, or authorized officials of overseas branches of Scheduled Banks registered in India.
Conclusion
With this crucial income tax update, it’s essential for NRIs to familiarize themselves with the necessary actions to make their PAN cards operative again. Linking your PAN card with Aadhaar and having the right documents in order are the first steps to maintaining compliance and continuing to file your ITR efficiently. This helps streamline the financial and tax-related processes, and also ensures that you stay abreast of any updates in the regulations.
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