ITR
NRI PAN shown inoperative though exempt
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Facts
NRIs are exempt from linking, but if your PAN records show you as resident, or you did not file returns showing NRI status, the system can mark the PAN inoperative.
Provisions and law
- Sec 262, Income-tax Act 2025 (old Sec 139AA)PAN and Aadhaar linking requirement continues under the new Act
- Sec 262, Income-tax Act 2025 (old Sec 139AA)PAN holders must intimate Aadhaar; an unlinked PAN becomes inoperative
Analysis
Proof of status usually means passport pages with travel dates, a foreign address or visa, and recent returns filed as non-resident. Example: an NRI in Dubai finds NRO interest taxed at a higher rate; writing to the officer with passport copies and the last ITR filed as non-resident can get the status updated. Alternatively, link Aadhaar voluntarily if you have one.
Conclusion
- Collect passport, visa and ITR showing NRI status
- Write to the jurisdictional AO to update status
- Or link Aadhaar after paying ₹1,000 if you hold Aadhaar
- Inform banks once the PAN is 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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