Easily File Your Income Tax Return: You don’t have to worry if your PAN is inactive if you miss linking it with your Aadhaar by June 2023. The income tax department had previously clarified that an inoperative PAN remains active. Individuals who do not require an audit for the Financial Year 2023-24 (Assessment Year 2024-25) must file their Income Tax Returns by July 31, 2024.
Tax2win co-founder and CEO Abhishek Soni explains that you can still file your income tax return if you fail to link your PAN with your UID by June 2023.
In contrast, Soni clarifies that the verification process will not involve Aadhaar OTP. Instead, you can generate an Electronic Verification Code (EVC) through net banking, ATMs, or other approved methods.
What is an inoperative PAN?
If the PAN is not linked to the taxpayer’s Aadhaar number, it is considered inoperative.
Easily File Your Income Tax Return: How to file an ITR if your PAN is inoperative?
The Income Tax Return (ITR) can be filed even if the PAN becomes inoperative, said Vijay Bharech, Director, Deloitte Haskins & Sells LLP.
The process of filing income tax returns remains the same even if your PAN is inactive.
“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. This typically involves navigating to the e-file section, selecting the option for income tax return filing, and proceeding with the necessary details and documentation,” explained Abhishek Soni.
The inactive PAN, however, will result in repercussions. If you file an Income Tax Return (ITR) with an inactive PAN, you won’t be allowed to claim a refund or interest on refunds. Aadhaar linking is mandatory for refund claims.
Vijay Bharech stated that refunds, if any, will not be given to taxpayers, and interest will only be paid once the PAN is activated.
Income tax returns must be updated by March 31
In the event that you did not file your original income tax return (ITR), you still have the option to file an updated return by March 31, 2024. Taxpayers can file updated returns for the assessment years 2021-22, 2022-23, and 2023-24.
The updated return must, however, be accompanied by any additional tax due.
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