Income Tax Returns: Can I File ITR Even With Inoperative PAN Card?

The Income Tax (I-T) department has clarified that taxpayers can file their Income Tax Returns (ITRs) even if their PAN card has become inoperative. Notably, many individuals' PAN cards became inoperative as they failed to link them with Aadhaar by June 30, 2023.

The I-T department's website stated, "Income tax return can be filed even if Aadhaar is not linked with PAN or even when PAN is 'inoperative'. Please fill your income tax return early, and avoid last week's rush."

Interestingly, the Income Tax portal does not mention any requirement for individuals to link their PAN with Aadhaar at the time of filing ITR.

It is crucial to remember that the deadline for filing ITR is July 31, 2023.

Parliamentary Panel Advocates User-Friendly ITR Form

Addressing the challenges faced by individuals and non-business taxpayers during the I-T return filing process, a parliamentary panel urged the Union Finance Ministry to introduce a common ITR form, making it more user-friendly.

As per a November 2022 announcement by the Finance Ministry, they are committed to implementing a user-friendly common income tax return form for all taxpayers.

In response to the parliamentary panel's request, the Finance Ministry revealed plans to introduce a common ITR form by consolidating all the existing forms, except for ITR 7.

Simplifying Tax Filing for Various Income Sources

The Standing Committee on Finance, chaired by BJP MP Jayant Sinha, highlighted that individuals with diverse income sources often find it challenging to file ITR independently and need to seek assistance from chartered accountants.

New Personal Income Tax Regime Announced

In the Union Budget 2023-24 speech, Union Minister for Finance Nirmala Sitharaman unveiled a new personal income tax regime featuring revised tax rates and benefits:

Revised tax slabs under new tax regime

• Income of up to Rs 3 lakh: Nil tax.
• Income above Rs 6 lakh and up to Rs 9 lakh: Taxed at 10 percent under the new regime.
• Income more than Rs 12 lakh and up to Rs 15 lakh: Taxed at 20 percent.
• Income above Rs 15 lakh: Taxed at 30 percent.

With these updates, taxpayers are encouraged to file their ITRs promptly, even if their PAN cards have become inoperative. The proposed common ITR form aims to make the process more accessible and user-friendly for taxpayers, aligning with the government's efforts to streamline tax procedures.