How to Reactivate NRI PAN Card

An NRI's PAN card may get deactivated due to several reasons. The most common reasons are that PAN-Aadhaar is not linked or carrying more than one PAN card. Although NRIs are exempt from the mandatory PAN-Aadhar linking, you must correctly update their residential status in the PAN database. If your residential status is not updated, you may be considered a resident. In such a case, your PAN will become inoperative due to a non-linked PAN-Aadhaar.

Additionally, if the system identifies that you hold more than one PAN, the additional one will be deactivated. You can check whether your PAN is active or inactive through the income tax portal. The process to reactivate a PAN card depends on why it is deactivated. Keep reading further to know how to reactivate a PAN card based on the reason behind its deactivation.

What is a PAN Card, and Why Can it be deactivated?

A PAN card is a unique 10-character alphanumeric identifier issued by the Income Tax Department. There are various reasons why most NRIs' PANs may get deactivated. Here are the key reasons behind a PAN being inoperative:

PAN-Aadhaar Not Linked

Linking PAN with Aadhaar is a mandatory requirement under the Indian tax rules. However, NRIs are exempt from mandatory PAN-Aadhaar linking. This exemption is valid only if the PAN database reflects your residential status as 'NRI'.

If your status is not updated, you may be treated as a resident. This will lead to your PAN being inoperative due to not fulfilling the PAN-Aadhaar linking requirement.

Duplicate or Multiple PANs

If the system identifies that two PANs are issued to the same person, the additional PAN card may be deactivated. This affects older PAN cards or cases when NRIs apply for a new PAN after moving abroad.

These were the most common reasons behind a PAN being inoperative for NRIs. There are other reasons as well, such as discrepancies in data, a PAN created using fake data, or inactive or outdated PAN records. Let's now understand how to check whether your PAN is operative or inoperative.

How to Check if Your PAN is Inoperative?

You can check the PAN status on the Income Tax Portal by following the steps below:

Step 1: Visit the Website and Find the 'Verify your PAN' option: Navigate to the official income tax portaL. Under quick links, click on the 'Verify your PAN' option.

Step 2: Enter the Required Details: On the next page, fill in the basic details. It includes PAN number, full name, date of birth, and mobile number. Ensure to fill in the correct details as per your PAN card.

Step 3: Complete OTP Verification: An OTP will be sent to your registered mobile number. Enter the OTP and click on " Validate " to proceed further.

*Note: In case you used an Indian mobile number for a PAN card, but you are abroad now. Make sure that the Indian number is still active to receive the OTP. Alternatively, you can even seek help from someone in India to complete this check. Now, in case your PAN status shows 'inoperative,' consider the steps below based on the reason for its deactivation.

What is the Process to Reactivate PAN Card for NRIs?

The process to reactivate a PAN card depends on the reason behind its deactivation.

Case A: PAN was Deactivated Due to PAN-Aadhaar Not Linking (Most Common for NRIs)

NRIs are not required to link their Aadhaar with their PAN. However, the only reason why PAN-Aadhar linking may be required is your residential status being marked incorrectly as 'Resident'. Here are the steps to follow if your PAN is inoperative due to non-linking of PAN-Aadhaar:

Step 1: Update Your Residential Status with the Income Tax Department

Inform the Income Tax Department that you are an NRI by submitting a request to your Jurisdictional Assessing Officer (AO). Your request must include the following details:

• A copy of your deactivated PAN card.
• A signed letter reflecting that you are an NRI requesting PAN reactivation.
• Proof of NRI status (OCI/PIO card, passport showing immigration stamps, overseas address proof, foreign resident visa/work permit).
• Foreign bank statement and any document showing overseas stay/residency. (If required by the AO).

You can find the AO details in the PAN Services AO directory on the Income Tax Portal. Follow the steps below to find the details of your jurisdictional assessing officer:

• Visit the official income tax portal and find the 'Quick Links' option.
• Under quick links, look for 'Know Your JAO'.
• Fill in the required details, such as PAN and mobile number.
• Click on 'Continue' and you will receive an OTP on the mobile number you entered.
• Enter the OTP and click on 'Validate'.
• The screen will display the details of your jurisdictional assessing officer.

Step 2: AO Updates Your Status to NRI

Once the AO receives all the details, they will update your status in the PAN database. After that, your PAN will no longer require Aadhaar linking.

Step 3: PAN Becomes Active Again

Once your residential status is updated, your PAN becomes active automatically. It will typically take 7-15 working days.

Case B: PAN Becomes Inoperative Due to Duplicate PAN

In case the IT department identifies that you hold more than one PAN, you must complete a small compliance process. Here are the steps you need to follow:

Step 1: Draft a Reactivation Letter

Write a reactivation letter to your AO. Ensure to include your correct PAN and reasons for reactivation in the letter. Also, include a declaration stating that you will surrender the duplicate PAN (if any).

Step 2: Attach the Required Documents

You usually need:

• Copy of the deactivated PAN
• Copies of the ITR filed in the last 3 years(if applicable)
• Indemnity Bond confirming that you don't hold multiple PANs

Step 3: AO Reactivates the Correct PAN

Once your documents are successfully reviewed, the AO will reactivate the valid PAN. This will usually take 10-20 days. Additionally, the AO will also instruct you to surrender any duplicate PAN numbers.

The Bottom Line

An inoperative PAN can cause many issues for NRIs, whether it's due to PAN-Aadhaar not linking or duplicate PANs. However, checking the PAN status and knowing exactly what to do can make the PAN reactivation process easier. As an NRI, seeking professional assistance can help you reactivate the PAN card easily.

Talking about experts, Savetaxs is the best choice. We have a team of experts who have years of knowledge and expertise with NRI-related issues. Our team can help you identify the reason behind your PAN deactivation. They will also help with the process of reactivating your PAN card easily without any issues. Connect with us right away and avoid any issues or penalties that may arise due to an inoperative PAN card.