Frequently Asked Questions on PAN & Aadhaar linking for NRIs
If you are eligible to obtain an Aadhaar card, it is mandatory to link it with your PAN card under Section 139AA (2). As an NRI, you are not obligated to obtain an Aadhaar number. However, the Income Tax department has mandated that you update the income tax portal with your residential status. This requirement applies even if you have been filing taxes as a Non-Resident Indian for the past few years and are registered as an NRI with the National Securities Depository Limited (NSDL).
NRI customers can either link PAN with Aadhaar or update correct residential status (i.e Non-Resident) in the income tax portal online. Further, if the customers do not have Aadhaar and the status of their PAN is “inoperative” on Income tax portal, then they will have to intimate their NRI status along with supporting documents to respective Jurisdictional Assessing Officer (JAO) to make the PAN operative.
Frequently Asked Questions
NRIs who do not have Aadhaar are exempted from the guideline of linking of PAN-Aadhaar provided they update their residential status as Non-Resident in the income tax portal. However if an NRI holds an Aadhaar, the exemption does not apply, and they will have to link their PAN with Aadhaar.
As per Income tax Act, 1961 if a PAN is not linked with Aadhaar on or before June 30, 2023 then the status of the PAN will be considered as inoperative.
To link PAN with Aadhaar, either click on the below provided link or paste the URL of the income-tax site in your browser https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar
Click on the below link
https://eportal.incometax.gov.in/iec/foservices/#/pre-login/link-aadhaar-status
Enter your correct PAN and Aadhaar number and click submit, it will display the status of your Aadhaar and PAN linking.
Yes, as per Rule 114AAA, such PAN will become operative from the date of linking with Aadhaar.
Failure to link your PAN with Aadhaar will render your PAN inoperative, resulting in TDS deductions on income at the actual rate or 20%, whichever is higher. Consequently, both long-term and short-term capital gain taxes will be deducted at a rate of 20% upon the sale of securities. This will be applicable for transactions done through Portfolio Investment Scheme (PIS) accounts.
NRIs can update their status as Non-Resident by following these steps:
- Login to https://eportal.incometax.gov.in/iec/foservices/#/login
- Click on My profile
- Click on Edit
- Click on Non – Resident and Save
For activating PAN, clients have to ensure that their residential status appears as Non-resident on the income tax portal.
Clients then have to update their NRI status by submitting relevant documents to their respective Jurisdictional Assessing Officer (JAO). To get information of JAOs, follow these steps:
- Visit incometax.gov.in/iec/foportal
- Click on profile
- Click on Know Your AO
- Enter the PAN and mobile number
- Click on continue
- Enter the OTP and click on Validate
- Click on Jurisdiction details
The status is updated in the ITD records within 30 days, and clients are marked exempted from PAN and Aadhaar linking.
Alternatively, clients can raise a grievance with supporting documents to update the residential status from Resident to Non-resident by logging into the ITD portal and selecting the department as AO and sub-category as others.
Dashboard >>Grievances>Submit Grievance> Select department as AO >Category (others)>Sub-category (others)
Below are the supporting documents required to be submitted:
- Copy of PAN card
- Any one of the following:
Copy of passport showing stay-confirming NRI or
Copy of the PIO card issued by the Government of India or
Copy of Overseas Citizen of India (OCI) card issued by Government of India or
Copy of other national or citizenship identification number, or taxpayer identification.
Please note Citizenship Identification Number or Taxpayer Identification must be attested by the Indian Embassy, high commission or consulate in the country where the client is located or attested by authorised officials of overseas branches of scheduled banks registered in India.
