In today’s digital age, the Permanent Account Number (PAN) card holds immense significance in various financial transactions.
Many senior citizens wonder whether having a PAN card is a prerequisite for filing their Income Tax Returns (ITR).
This article aims to provide clarity on whether senior citizens can file their ITR without a PAN card and outlines the necessary steps.
Importance of PAN for Senior Citizens
Senior citizens often find themselves in a scenario where they have deposited their savings in Fixed Deposits (FDs) across different banks.
To avoid tax deductions, they submit Form 15G. However, if they lack a PAN card, banks may deduct taxes at a rate of 20 percent.
Under Section 206AA of the Income Tax Act, banks are obligated to deduct tax at the rate of 20 percent even if a senior citizen submits Form 15G, provided they do not possess a PAN card.
This situation necessitates the submission of Form 15H by senior citizens.
Can Senior Citizens File ITR Without a PAN Card?
It’s crucial to note that filing ITR without a PAN card is not possible. To claim a refund for tax deductions made by the bank, filing ITR is mandatory.
In the absence of a PAN card, individuals must first apply for one. However, for those who have an Aadhaar number, there is an alternative.
Senior citizens can use their Aadhaar number in place of a PAN card for ITR purposes.
They can submit a request to the bank to update their Tax Deducted at Source (TDS) return by adding their PAN or Aadhaar number alongside their name.