ITR
Filing ITR with an inoperative PAN
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Facts
Returns can usually still be filed, but consequences follow: no refund, no interest on refund, and higher TDS and TCS while the PAN is inoperative. Linking before filing avoids these problems.
Provisions and law
- Sec 139AA, Income-tax Act 1961 (now Sec 262, Income-tax Act 2025)PAN holders must intimate Aadhaar; an unlinked PAN becomes inoperative
- CBDT Circular No. 03 of 2023From 1 July 2023 an inoperative PAN gets no refund, no interest on refund, and higher TDS and TCS
Analysis
The user manual calls linking recommended, but practitioners report issues in processing for inoperative PANs. Example: an AY 2026-27 return with a ₹15,000 refund filed with an inoperative PAN is processed, but the refund is held until linking. Link first, then file, if time allows.
Conclusion
- Check PAN status before filing
- Link Aadhaar if needed
- File the return
- Track refund after PAN becomes operative
A Savvy can do this for you
PAN-Aadhaar linking with late fee, Sec 262 and 430 (old 139AA and 234H)
₹499
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