NRI Inoperative PAN Card: Reasons & Solutions

An inoperative PAN Card is one of the most common issues NRIs face. However, the issue might be common, but the complexities related to it are not. With an NRI inoperative PAN card, you may be restricted from opening bank accounts in India, filing ITRs, making investments, or even claiming the tax refunds you deserve. 

This entire situation might be confusing, but with the proper steps and an understanding of why an inoperative PAN card situation occurs, you can avoid it.

In this blog, we will discuss all the reasons why the NRI PAN card is marked inoperative and how you can resolve this issue. 

Why PAN Becomes Inoperative For NRIs/OCIs

The following are the reasons why the NRI PAN card is marked inactive or inoperative. 

Incorrect residential status in the PAN Database: Once you become an NRI and your PAN is still marked as a resident in the system, the system will automatically expect you to link your PAN and Aadhaar card, resulting in it being marked as inoperative. 

Mismatch in KYC and the personal details: When there are errors in your name, passport details, or the DOB during the PAN application process or KYC update, it can trigger the PAN card's inoperative status. 

Unable to Do PAN Revalidation: When you move from India to abroad, and your essential documents change, you must revalidate the PAN with supporting documents such as a visa, passport, or an overseas address, because if not, it can become inoperative. 

Inactive or Outdated PAN records: Understanding the importance of Aadhaar and PAN card is essential for someone making financial transactions in India. And when you have these documents inactive or out of date, it hampers the compliance. Specifically, PAN card inactivation usually occurs when your PAN Card has no current financial activity or KYC has not been updated. The system will mark your NRI PAN as inactive, and you will need to revalidate it.

What Are The Consequences Of Having An NRI Inoperative PAN Card?

When the PAN card becomes inoperative, it hampers the financial operations of NRIs in India, and hence it is important to get your NRI PAN Card correction done. An inoperative PAN card can lead to the following consequences. 

No KYC-compliant Transactions: With an inoperative PAN card, NRIs and OCIs cannot use it or participate in transactions that require KYC compliance, such as opening a bank account, investing in mutual funds, systematized investment Plans (SIPs), or purchasing a property. 

Higher TDS & TCS: NRIs in India are already subject to higher TDS or TCS than Indian residents. Now an inoperative PAnc ardfutehr trgegrse higher tax collected at source and higher tax deducted at source. 

No Tax Refunds: Pending tax refunds, along with their interests on those returns, are blocked or withheld until your PAN card status becomes reactivated again. 

Array of Administrative Hassles: NRIs cannot come to India to resolve such issues in person, so they have to rely on online systems and email communication with the Judicial Assessing Officer, which adds another layer of complexity, especially when responses are delayed. 

To add to this list, there are a few more issues:

• Life insurance premiums will not be processed. 
• An NRI or OCI cardholder with an inoperative PAN card cannot invest in shares or bonds.
• Mutual fund redemption will also be rejected.

Hence, NRIs and OCIs are advised to obtain their PAN cards at the earliest opportunity. 

How To Check If an NRI PAN Card Is Inoperative?

Checking the operational status of your PAN card is simple. All you need to do is log in to the Income Tax Department's filing website and look for a disclaimer that shows your PAN card is inoperative. Now, if you don't see any such disclaimer note, go to the "My Profile" section to verify the status of your PAN card. 

That's how easily you can run an NRI PAN status check.

How To Make PAN Card Operative Again For NRIs and OCIs?

The only answer to the question "how to reactivate inoperative PAN" is to follow the steps mentioned below.

Identity You PAN jurisdiction.

The first step is to finalize your PAN jurisdiction. This information is found on the My Profile section of the Income Tax Department website after you have logged in using your credentials. 

Find the Contact Information for the Jurisdictional officer. 

Once the jurisdiction is identified, you must find the contact information, including the jurisdictional officer's email address.

Send An Email Request

Draft a clear, concise email to the officer requesting that the PAN card be made operational again. However, be sure to attach the following documents to the mail. 

• A clear scanned copy of your PAN card.
• The proof of your NRI status (for example, the copy of your passport or visa). 
• The details about how many days you have stayed in India in the current year and in the last four years. 
• And send the email. 

Once the email is sent, it will typically take 7 to 10 days for your PAN card to be reactivated. However, it is always advisable to seek professional assistance to ensure the email and application are drafted accurately, avoiding delays in the process. 

The Bottom Line

Understandably, an inoperative PAN card can be a frustrating issue for NRIs, but resolving it is simple if you know exactly what to do. If needed, NRIs and OCIs, please seek professional assistance to complete this process seamlessly and in compliance. 

And when it comes to NRI tax and compliance assistance, who to trust more than Savetaxs? We have been helping NRIs from 90+ countries with their government-related administrative tasks in India, and, based on our satisfied clientele, we assure you that your job will be done. 

Our experts bring more than 30 years of combined experience, so your PAN card, taxation, and other compliances are in trusted hands. 

Connect with us as we serve our clent s24/7 across all time zones. 

NRIs stay updated and ensure that your PAN card status is operative so you can enjoy all the financial transactions and benefits in India.