Indian government had directed its citizens to have their Pan card linked with Aadhar by June 2023, failing to comply with which would deem the PAN inoperative.
The Impact of PAN Inactivity on FY 2023–2024 ITR Filing
The income tax return is not a concern for individuals who do not have them linked and whose PAN is inactive. The income tax authority has already clarified that an inoperative PAN is still functioning.
The department states that the deadline for filing ITRs by those who do not need an audit for the Financial Year 2023–24 (Assessment Year 2024–25) is July 31, 2024.
Even if the ITR can be filed, in certain circumstances the Aadhar OTP will not be required for the verification process. An alternative approach such as the Electronic Verification Code (EVC) via ATMs, net banking, or other authorized methods can be used in place of this one.
“One may pay the income taxes due and file the Income Tax Return (ITR) irrespective of PAN becoming inoperative,” stated Vijay Bharech, Director, Deloitte Haskins & Sells LLP.
“You can simply log in to your account on the income tax e-filing portal and follow the steps outlined for filing income tax returns,” stated Abhishek Soni, CEO and co-founder of Tax2win. Usually, to achieve this, one must go to the e-file section, choose the income tax return filing option, and then follow with the required information and paperwork.
The Effects of an Inactive PAN
Conversely, inactive PANs will prevent you from obtaining a refund or interest on any refunds, even if you submit an ITR.
According to Vijay Bharech, “the taxpayer will not receive any refund that is due, and interest on the refund will only be paid from the date the PAN becomes operative.”
The revised ITR must be submitted by March 31st.
In the event that the initial income tax return (ITR) is not filed, an amended return may still be filed by March 31, 2024.
Updated returns for any of the assessment years 2021–22, 2022–23, and 2023–24 may be filed by taxpayers.
Notably, the amended return must be filed and any additional taxes paid with it.
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