Mysore/Mysuru: While filing the Quarter 2 TDS/TCS statements of the FY 2023-24, all the deductors or collectors like Central  and State Government Offices, Local Authority, Companies, Financial Institutions, Insurance Com-panies, Educational Institutions, etc., shall deduct TDS at 20% or collect TCS at 20% on such Individual Inoperative PANs which have not been linked with Aadhaar.

Status of the PAN can be verified by visiting the Income-Tax Reporting Portal https://report.insight.gov.in/reporting-webapp/portal/homePage

Consequences of PAN becoming inoperative will be i) pending refunds will not be issued, ii) Interest on refund  shall not be payable from 1.7.2023, iii) TDS is deductible at higher rate, iv) TCS shall be collected at higher rate. FORM 15G or 15H will not be valid. In addition to this, PAN holder may face difficulty at various situations  like Banks and other financial Institutions, as PAN is one of the important KYC criteria for all kinds of financial  transactions.

Those who have not linked shall link the PAN-Aadhaar on payment of fee Rs.1,000. The fee payment for  PAN-Aadhaar Linkage need to be made through e-Pay Tax functionality available in Income Tax portal. The prescribed fee must be paid under Major Head 0021 and Minor Head 500 and Assessment Year (AY) should  be 2024-25 using Challan ITNS 280.

However, Aadhaar-PAN linking presently does not apply to any individual who is i) a non-resident as per the  Income Tax Act, 1961, ii) of the age of eighty years or more and iii) not a citizen of India, according to  N.D. Shreenivaas of Bhavani Associates.