Find
Under CBDT Circular 03/2023, no refund is paid and no interest on refund is allowed while the PAN is inoperative. Once the PAN becomes operative after linking, the refund can be issued.
ITR
Refund stopped because PAN is inoperative
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Provisions
Sec 139AA, Income-tax Act 1961 (now Sec 262, Income-tax Act 2025); CBDT Circular No. 03 of 2023; Sec 244A, Income-tax Act 1961 (now Sec 437, Income-tax Act 2025)
Analysis
Interest on refund is not paid for the period the PAN stays inoperative. Example: an AY 2025-26 refund of ₹22,000 was held because the PAN was not linked; after paying ₹1,000 and linking, the refund is processed, but interest for the inoperative months is lost. Raise a refund reissue request if the status says failed.
Close
- Link PAN and Aadhaar after paying the fee
- Wait for the PAN to show operative
- Check refund status on the portal
- Raise a refund reissue request if needed
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