As the July 31, 2024, deadline approaches for individuals exempt from audit for FY 2023-24, the perplexity around filing Income Tax Returns (ITR) with an inoperative PAN has intensified. The Income Tax Department, however, clarifies that taxpayers can still proceed with filing their returns, ensuring compliance and peace of mind.
Understanding Inoperative PAN and ITR Filing
An inoperative PAN, a result of not linking it with Aadhaar by June 2023, seemingly complicates the ITR process. Despite this, the income tax department reassures that filing is possible and straightforward.
Here’s How to Navigate Filing with an Inoperative PAN:
- Filing Process Remains Unchanged: Even with an inoperative PAN, the filing process on the e-filing portal is unchanged. Log in, navigate to the e-file section, and proceed with your income tax return filing, as guided by experts from the field, including Vijay Bharech from Deloitte Haskins & Sells LLP and Abhishek Soni, CEO of Tax2win.
- Implications on Tax Refunds: It’s critical to understand the repercussions of filing with an inoperative PAN. Without linking your Aadhaar, claiming refunds or interest on those refunds becomes impossible, emphasizing the importance of making your PAN operative for these processes.
Opportunity for Updated ITR Submission
Missed the original deadline? The window for filing an updated ITR remains open until March 31, 2024. This option is available for the assessment years 2021-22, 2022-23, and 2023-24, providing a lifeline for rectifying your tax records. Remember, any additional tax liability must accompany the updated return submission.
Ensuring Compliance and Maximizing Returns
In light of these guidelines, taxpayers should prioritize linking their PAN with Aadhaar to reactivate their PAN. This not only facilitates smoother filing and refund processes but also ensures compliance with tax laws.
For detailed guidance and assistance with your ITR filing, including navigating issues with an inoperative PAN, visit efiletax.in. Our resources and expert advice aim to streamline your tax filing process, ensuring you meet your obligations effortlessly.