What is the process for updating the resident status of PAN for an NRI & PIO account?

PANs not linked to Aadhaar were deactivated by the Income Tax Department (ITD) starting from July 1, 2023. Initially exempted, PANs of Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO) have also been deactivated due to non-updation of their status as NRI. According to the circular, a higher TDS is applicable when the residential status is not updated with the ITD.

To activate the PAN, clients must initially verify that their residential status is designated as Non-resident on the ITD website. To update the status to Non-resident, follow these steps:

Step 1: Login to ITD e-portal. 

Step 2: Click on “My Profile”

Step 3: Click on “Edit”

Step 4: Click on “Non-resident” and click “Save”. 

Clients need to update their NRI status by submitting the necessary documents to their respective Jurisdictional Assessing Officer (JAO). To obtain information about JAOs, follow these steps:

Step 1: Visit ITD Website.

Step 2: Select Profile.

Step 3: Choose Know Your AO.

Step 4: Provide the PAN and mobile number.

Step 5: Click Continue.

Step 6: Enter the OTP and click Validate.

Step 7: Navigate to Jurisdiction Details.

The ITD records are updated with the status within 30 days, and clients are flagged as exempt from linking PAN and Aadhaar.

Alternatively, clients have the option to submit a grievance along with supporting documents to change their residential status from Resident to Non-resident. This can be done by accessing the ITD portal and choosing the department as AO, with the sub-category specified as others.

The submission of the following supporting documents is necessary:

  • Copy of the PAN Card

Along with any one of the following documents:

  • Copy of the passport indicating NRI status
  • Copy of the PIO card issued by the Government of India.
  • Copy of the Overseas Citizen of India (OCI) card issued by the government of India.
  • Copy of another national or citizenship identification number or taxpayer identification.

The attestation of Citizenship Identification Number or Taxpayer Identification is required either by the Indian Embassy, High Commission, or Consulate in the client’s residing country or by authorized officials of overseas branches of scheduled banks registered in India.

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