- Date : 07/08/2023
- Read: 3 mins
We take a look at the situation that can make your PAN inoperative, how to check your PAN’s inoperative status, and how to change its status back to active. The article also discusses the importance of PAN-Aadhaar linking.
Almost everyone has a PAN card but hardly anyone thinks that it might become inoperative. However, if someone fails to link their PAN with Aadhaar, their PAN cards would become inoperative now.
The Income Tax Department had notified that if PAN and Aadhaar were not linked by 30 June 2023, the unlinked PAN would become inoperative from 1 July 2023. So, if you or someone you know has failed to follow the latest directive on linking PAN with Aadhaar, the issue of an inoperative PAN card would need to be addressed.
PAN Aadhaar non-linking has led to the invalidity of PAN
You can check if your PAN has become inoperative due to non-linking
There are several drawbacks to not having an active PAN
Rs 1,000 and a simple process can re-activate your PAN
Is Your PAN Inoperative?
To check if your PAN is still valid or not, you can visit the e-filing homepage
Then click on the Verify your PAN option
On the page appearing subsequently, enter your PAN, complete name, birth date, and mobile phone number
Verify your mobile number with the OTP received and click on Validate
What Happens When the PAN Becomes Inoperative?
Not having a PAN or having an invalid one has multiple disadvantages you will face if you don’t have a valid PAN –
You will not receive your income tax refunds
Even if your PAN were to become operative subsequently, you will not receive any interest on the refund amount for the period during which your PAN was inoperative
In the absence of a valid PAN, TDS, and TCS will be deducted/collected from you at a higher rate
Activating an Inoperative PAN
If your PAN has become inoperative, you must pay Rs 1,000 on the e-filing portal. This one-time fee is being charged to link PAN and Aadhaar. A Press Information Bureau released on 28 March 2023 said that once the deposit of Rs 1,000 is made and the Aadhaar intimation is made, the PAN will become operative. A PAN card activation time of 30 days has been cited.
Many taxpayers, including non-residents, are concerned about the status of their PAN. NRIs must intimate their non-resident status with the Income Tax department to ensure their PAN doesn’t become or remain inoperative.
Resident taxpayers, on the other hand, can follow the simple process and get their PAN reactivated again.
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