Linking Pan And Aadhaar: A Guide For Nris

Linking your Aadhaar with your PAN card is mandatory for all Indian citizens. However, Non-Resident Indians (NRIs) are not obligated to obtain an Aadhaar number. The requirement to link the two only applies to NRIs who wish to file income tax returns in India, open bank accounts, or conduct certain financial transactions. In this case, there are two methods for NRIs to link their PAN with Aadhaar: online linking and through a Jurisdictional Assessing Officer (JAO). It is important to note that NRIs might face challenges due to their physical absence from India, as Aadhaar enrolment typically requires physical verification.

Income Tax Returns (ITRs) and refunds

As an NRI, you are exempt from obtaining an Aadhaar number. However, if you are eligible for an Aadhaar card, you must link it with your PAN card under Section 139AA(2). The Income Tax Department of India has made it compulsory to link PAN with Aadhaar; failure to do so will render your PAN card inoperative. This will cause difficulties in filing income tax returns and claiming pending tax refunds.

If you do not possess an Aadhaar card, you can update your residential status as a Non-Resident on the income tax portal to reactivate your PAN card. Here is a step-by-step guide:

• Log in to the income tax portal: https://eportal.incometax.gov.in/iec/foservices/#/login
• Click on "Non-Resident" and save.
• Submit relevant documents, such as a copy of your passport, to your respective Jurisdictional Assessing Officer (JAO) to update your NRI status.
• To find the contact information of your JAO, visit the ITD portal:

> incometax.gov.in/iec/foportal

• Click on "Know Your AO."
• Enter your PAN and mobile number.
• Enter the OTP and click "Validate."
• Click on "Jurisdiction details."

Your status will be updated in the ITD records within 30 days, and you will be marked as exempt from PAN and Aadhaar linking. Alternatively, you can raise a grievance with supporting documents to update your residential status by logging into the ITD portal.

If you possess an Aadhaar card, you must link it with your PAN to reactivate it. Here is how you can do it:

• Visit the Income Tax e-Filing Portal.
• Click on the "Link Aadhaar" option under the "Quick Links" heading on the homepage.
• Enter your PAN and Aadhaar Number and click "Validate."
• A pop-up message will appear when the details are verified. Click "Continue."
• Enter the required details and click "Link Aadhaar."
• Enter the OTP received on your mobile number.
• Your request to link the PAN-Aadhaar will be successfully submitted.

Your PAN card will become operative within 7-30 days of applying for PAN-Aadhaar linking. Once your PAN is reactivated, you can use it for various transactions, including filing your ITR and claiming TDS refunds.

Tax Deducted at Source (TDS) certificates

As an NRI, you may be facing challenges due to the inoperative status of your PAN card, which has been caused by the PAN-Aadhaar linking requirement. This issue has impacted your financial transactions and investment prospects in India, particularly concerning Tax Deducted at Source (TDS) certificates. Here is a detailed guide to help you understand TDS certificates and their relevance to NRIs:

Understanding TDS Certificates

TDS certificates are official documents that provide a record of the tax deducted at the source of income. In India, TDS is applicable to various types of payments, including rent, commission, professional fees, salary, and interest. The person making the payment is responsible for deducting the TDS and depositing it with the government. The recipient of the income then receives the net amount after the TDS deduction.

TDS Certificates for NRIs

As an NRI, the inoperative status of your PAN card due to the linking issue with Aadhaar can affect your eligibility for TDS certificates. Here are some key points to note:

• Impact on TDS Rates: Without a valid PAN card, you may be subject to higher TDS rates on various financial activities, such as rental income, property sales, and transactions through Non-Resident Ordinary (NRO) accounts.
• Obtaining TDS Certificates: To obtain a TDS certificate, you need to have a valid PAN. As your PAN card is currently inoperative, you will need to resolve the linking issue first. Once your PAN card is reactivated, you can then request TDS certificates for your various sources of income.
• Due Dates for TDS Certificates: It's important to be mindful of the due dates for issuing TDS certificates. For TDS on salary, Form 16 should be issued by the 31st day of May of the following financial year. For TDS on non-salary income, Form 16A should be issued within 15 days from the due date for furnishing the TDS statement or return.
• Contents of a TDS Certificate: A TDS certificate includes essential details such as the valid PAN of the deductee (the person receiving the income), the valid Tax Deduction Account Number (TAN) of the deductor (the person making the payment), the Challan Identification Number (CIN) related to the tax deposit, and the receipt number of the relevant quarterly TDS statement.
• Frequency of TDS Certificate Issuance: TDS certificates can be issued for multiple payments and are typically provided on a quarterly basis.
• Penalty for Non-Compliance: If a TDS certificate is not issued within the specified timeframe, there may be penalties under the Income Tax Act, 1961. The penalty is a sum of INR 100 for each day of delay in providing the TDS certificate.

In summary, the inoperative status of your PAN card due to the PAN-Aadhaar linking requirement has likely impacted your ability to obtain TDS certificates. To resolve this, you can follow the steps outlined earlier to change your residential status with the Income Tax department or apply for an Aadhaar Card. Once your PAN card is reactivated, you can then request the necessary TDS certificates and ensure compliance with the applicable due dates and requirements.

Online linking (for Aadhaar registered abroad)

If you are eligible for an Aadhaar card, it is mandatory to link it with your PAN card. However, as an NRI, you are not required to obtain an Aadhaar number. The Income Tax Department has mandated that you update the income tax portal with your residential status. This is true even if you have been filing taxes as an NRI for several years and are registered as an NRI with the NSDL.

To link your PAN with your Aadhaar, follow these steps:

• Visit the website and click on the "Aadhaar PAN Linking" button under "Quick Links".
• Choose the first option from the dropdown menu, which will direct you to a new window.
• Fill in the Aadhaar and PAN card details. Fill in the captcha or request an OTP and click on the "Link Aadhaar" button.
• Alternatively, type UIDPAN (single space) (single space) in the text body. Send this text to 567678 or 56161.
• Ensure that the details match your documents to avoid problems later on.

If you have made any errors while filling out the form, you will need to rectify them before successfully linking your Aadhaar and PAN. No documents are required for the linking process if the details on both cards are correct. However, if there are errors on either card, you will need to submit documents to make the necessary changes.

If your name on the PAN card is misspelt, follow these offline steps:

• Visit the NSDL link and download Form 49AA.
• Fill in your exact personal details and find the list of required documents and instructions.
• Attach a recent passport-sized photograph.
• Tick the boxes on the left margin where corrections were made.
• Mail the form and the required documents to the Income Tax Pan Services Unit at the following address: 5th Floor, Mantri Sterling, Plot No- 341, Model Colony (Near Deep Bungalow Chowk).

If you prefer to update your PAN details online, visit the NSDL website.

If the name is misspelt on your Aadhaar card, follow these steps:

• Go to the UIDAI website and enter your 12-digit Aadhaar number and the captcha.
• Enter the OTP and click "Submit".
• Update the fields that contained errors.
• Upload scanned copies of supporting documents as proof.
• Generate an Update Request Number (URN).
• Print out your updated Aadhaar card.

Additionally, you can download the form, fill it out, and bring the documents to any Aadhaar enrolment centre. Alternatively, you can visit the nearest Aadhaar enrolment centre without the form, and the authorities will assist you after verifying your documents.

Through a Jurisdictional Assessing Officer (JAO)

This method is suitable for NRIs who have not registered for an Aadhaar card abroad.

Firstly, locate your Jurisdictional Assessing Officer (JAO) using the Income Tax Department's website. You can do this by:

• Visiting the website: https://www.incometax.gov.in/iec/foportal/
• Clicking on 'Know Your AO' on the left-hand side of the page
• Entering your PAN and mobile number to receive an OTP
• Entering the OTP received on your mobile number
• Viewing the Jurisdictional details (address and email ID) on the next screen

Next, download Form VCP (Voluntary Correction of PAN Data). Fill out the form, mentioning the need to link your PAN with Aadhaar. Attach a copy of your PAN card, passport (which shows your NRI status), and a document as proof of your current foreign address.

Finally, submit the completed form and documents to your JAO either by mail or in person if you are visiting India. The JAO will then verify your details and initiate the linking process.

Exemptions from Aadhaar-PAN linking

As per the notification dated 11 May 2017, specific categories of individuals who do not hold an Aadhaar card and have not applied for one are exempt from the mandatory quoting of Aadhaar and linking of Aadhaar with PAN. This includes non-residents as per the Income-tax Act, 1961.

However, it is important to note that this exemption is only applicable if the NRI has not obtained or applied for an Aadhaar card in India. If an NRI holds an Aadhaar card, they are required to link it with their PAN.

In the case of NRIs who do not possess an Aadhaar card, they are exempted from the linking requirement but must update their residential status as Non-Resident in the income tax portal. This can be done by logging in to the income tax e-filing portal, visiting the "My Profile" section, and changing their residential status to Non-Resident under the contact details.

Additionally, NRIs who have an inoperative PAN due to non-linking with Aadhaar can file an application with the tax officer, stating that linking is not required for them. They must also submit copies of their PAN and passport, showing details of their stay outside India. After due diligence by the tax officer, the PAN will be made operative again.

Alternatively, NRIs can send an email or make a physical application to the assessing officer, requesting a change of residential status from resident to non-resident. This should be accompanied by the necessary documents, after which the PAN will become operative again.

Frequently asked questions