Aadhaar-PAN Link: PANs of 10 crore NRIs became inactive?”

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–News

1. PANs that are inoperative will not be deactivated. 

This means that NRIs can continue to use their PANs to file their Income Tax Returns (ITR). This is as per a statement issued by ITD

2.However, NRIs with inoperative PANs will face higher tax deduction at source.

This is because the Income Tax Department will assume that they are resident taxpayers and will deduct tax accordingly.

3.NRIs with inoperative PANs will also not be able to receive refunds.

This is because the Income Tax Department will need to verify their residential status before they can issue a refund.

4.NRIs with inoperative PAN will not be paid any interest on refund.

Interest will not be paid for the period the PAN remains inoperative.

5.Higher tax deduction at source

The Income Tax Department will deduct tax at a rate of 20% on all income payments made to NRIs with inoperative PANs. This is compared to the normal rate of 10% for resident taxpayers