NRI’s & OCI’s Immediate ACTION for Tax Compliance in India (Last Date: 31 March 2022)

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The Government has issued a Circular, to immediately link the PAN to your Aadhar card. If the PAN is not linked to the Aadhar, then the PAN Card may be frozen.

• Is this Circular applicable to NRI’s and OCI’s?
• I donot have an Aadhar. How to make an Aadhar?
• How to Link PAN and Aadhar?
• What will happen if I donot take any action on this?

Here are few FAQ’s which may be of a little assistance and provide clarity to you.

 

1. Which Government Circular has given a deadline of linking PAN and Aadhar?

Appended is the Government Circular advising all PAN Card Holders to link the PAN with the Aadhaar.

Link: https://incometaxindia.gov.in/Lists/Press%20Releases/Attachments/974/Press-Release-Government-extends-certain-timelines-to-ease-compliances-dated-17-09-2021.pdf

 

2. What is the last date to link PAN and Aadhaar?

As per the latest Circular, the last date to link the PAN with Aadhar is 31 March 2022. The Government has extended the deadline to link the PAN with Aadhar multiple times in the past. However, it seems as per the process, this time the PAN Card which are not validated and linked with the Aadhar, may be frozen.

 

3. What is the process to Link PAN and Aadhar?

The  easiest process to link the PAN with the Aadhar is:

Send a SMS to 567678 or 56161 from your registered mobile number in the following format:

UIDPAN[SPACE][12-digit Aadhaar][SPACE][10-digit PAN]. 

Example: UIDPAN 123456789012 ABCDE1234F

 

Alternative option is to do the linking  through:

1. https://incometaxindiaefiling.gov.in/
2.  https://www.egov-nsdl.co.in/

Will be advisable to connect with your Tax Advisor or Legal Advisor to assist you with this.

 

4. Why is the Government doing this?

There are many unscrupulous people, who have taken the Tax Department and the Government for a royal ride. There are people who have multiple PAN Cards and also Benami PAN Cards, where large transactions are done in these PAN Cards and Taxes are evaded. As the Aadhar is bio-metric based, the chances of a duplicate Aadhaar is minimal, hence once the PAN is linked and validated by the Aadhaar, all multiple PAN Cards and Benami PAN Cards will automatically be seeded out of the system.

 

5. What will the Government do if the PAN is not linked to the Aadhar within the deadline?

If any PAN is not validated by linking with the Aadhaar, then as per the Government and ITD, it is logically evident that either it is a duplicate PAN, or a Benami PAN or a deceased PAN. Hence the Government and ITD, plan to freeze and deactivate these non-validated PAN Cards.  

 

 

6. What are the challenges you may face of your PAN Card is frozen and de-activated?

Once the PAN Card is frozen and deactivated, you will not be able to use the PAN Card and PAN Number for any of your transactions in India. Hence, all your Investments and Property Transactions in India, where a PAN is necessary, will not go through. The TDS will not get credited to you as the PAN is frozen. You will not be able to file your Tax Returns and claim a Tax Refund in India, there may be higher TDS and Taxes on your investments, rental income, interest income and many such challenges.

Once the PAN Card is frozen and de-activated, it will be quite a bit of a challenge to get it reactivated as per the current process.

 

7. Do NRI’s and OCI’s need to Link PAN & Aadhaar or give NRI Declaration?

Either you need to update the Aadhar or you need to give the NRI Declaration, else your PAN may get frozen and de-activated. Hence, this action is required by everyone holding a PAN in India, either a Resident, NRI, PIO or OCI.

This requirement to link is applicable for anyone holding a PAN Card, whether it be a Resident, NRI or an OCI/PIO. The Government and ITD do not have any specific data set, in the PAN database, to determine and differentiate, whether you are an OCI/PIO/NRI or a Resident. Hence, it is very important to complete this Aadhar linking and validation, to keep your PAN Card active and alive. As per the ITD in India, there are practically 2 sets of PAN Holders, either Residents (ROR) or Non-Residents (NR) and there is no separate classification for OCI/PIO’s. Hence as mentioned, this requirement to validate is applicable for all PAN holders.

 

8. What do NRI’s and OCI’s need to do, if they donot have an Aadhaar?

Many NRI/OCI/PIO’s donot have an Aadhar Card. The Government and ITD has recently given an option for an NRI Declaration to be made for the PAN Card, confirming the Non-Resident Status of the PAN Card Holder. Hence, either the PAN card needs to be linked to Aadhar, or there needs to be an NRI Declaration to avoid the PAN from being frozen and de-activated.

 

       9. I am an NRI/OCI and don't have an Aadhar, what are the documents required to declare my NRI/OCI status to the ITD so that my PAN does not become frozen or de-activated?

If you are an NRI or an OCI and want to do the NRI Declaration, and donot have an Aadhar, the  following documents and details are required:

1. PAN Card copy
2. Passport copy
3. OCI copy (if applicable)
4. Email ID
5. Mobile No (India or Overseas)
6. Indian Address
7. Overseas Address

 

         10. How can Tax Assist – Alfred Jordan help do the linking or the NRI Status declaration?

If you want any assistance from our Team, please do send in the following details/documents and our Team will assist you for the same (nri@TaxAssist.in | info@AlfredJordan.com):

• Name
• eMail
• Mobile
• PAN 
• Aadhaar 
• Passport 
• OCI 
• Indian Address
• Overseas Address

CONTACT US

 

NB: NO FEES: As we largely deal with International & NRI Clients, and this is very important and urgent compliance, you don't need to pay us any fee for this service. However, our Team will off-course be putting in effort and time. Hence, we are open to receiving any amount of Fee suitable to your good self. The details of the Bank Account are mentioned below:

 

Other Aadhar related queries:

 

1. Can an NRI or OCI have an Aadhaar Card?

Yes. An NRI can apply for an Aadhar card. This is a question that had not had a straightforward answer. There has been a lot of confusion in the NRI and OCI Indians. However, with the latest amendment of the Aadhaar laws, an NRI CAN apply for an Aadhar Card. However, you will need an Indian Mobile Number for applying for an Aadhaar. It is very important to keep an active Indian Number as many compliances for ITD and others are being done using Aadhaar OTP which will be sent to this Indian Mobile Number. It is advisable to use a mobile number which belongs to you only.

Link: https://uidai.gov.in/contact-support/have-any-question/291-faqs/your-aadhaar/nri-aadhaar.html#:~:text=YES.,Aadhaar%20from%20any%20Aadhaar%20Kendra.&text=If%20your%20passport%20has%20the,Proof%20of%20Address%20for%20them.&text=If%20spouse%20is%20NRI%20%2D%20valid,Proof%20of%20Identity%20(PoI)

2. What are the documents required for an NRI to apply for an Aadhaar and can an Aadhar card be made from Overseas?

The Aadhar Card is a Bio-Metric Card, where your thumb impression and iris scanning is done. This facility is only available in India as of now. Hence, you can apply for an Aadhaar only when you are physically present in India.

The process to apply for an Aadhar for an NRI and the documents required are as follows:

1. Visit any Aadhaar Kendra of your convenience.
2. Carry a valid Indian Passport with you
3. Fill details in the enrolment form
4. Giving Email ID is mandatory for NRI
5. The declaration for NRI enrolment is slightly different. Read and sign the same in your enrolment form
6. Ask the operator to enroll you as NRI
7. Give your Passport as Proof of Identity
8. You may choose to use your Passport itself as Proof of Address and Date of Birth proof or give some other valid document/s for this
1. Complete the biometric capture process
10. Check all details on screen (in English and local language) before you allow the operator to submit
11. Collect the acknowledgment slip/ enrolment slip that has your 14 digit Enrolment ID and Date & Time Stamp.

The exhaustive list of approved documents is available at:

https://uidai.gov.in/images/commdoc/valid_documents_list.pdf

 

You can also check the status of your Aadhaar at: 

https://resident.uidai.gov.in/check-aadhaar

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