Do NRI need to link their Aadhar with PAN? TDS at higher rate if PAN not linked with Aadhar?

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As we know the due date for Linking of Aadhar with PAN is getting extended and extended but as of now the same has been locked down at 30.06.2020.

There were many news that there would be a penalty of Rs. 10000 for not linking your PAN with Aadhar or many such fake news but we told you that only repurcussion of not linking your PAN with Aadhar is that it will become inoperative. We have also discussed on how to make your PAN again operative once it is made inoperative.

Now the major question lies here that a NRI who lives mostly outside India and holds Indian Passport are they required to link their Aadhar with PAN, because even though an NRI can get Aadhar number based on its Passport. However, is it necessary for them to link their Aadhar with PAN card.

Let’s first understand what will happen if a person doesn’t link his Aadhar with PAN and how it will affect NRI:

As per 114AAA if a person doesn’t link his PAN with Aadhar it will become inoperative which will be as good as not having PAN and then by virtue of section 206AA TDS would be deducted at a higher rate and in addition to this one would be not able to file his return of income or claim refund of such TDS.

Now let’s check who are required to Link their Aadhar with PAN:

As per sub section 2 of section 139AA ” Every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to such authority in such form and manner as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette:

Provided that in case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be [made inoperative after the date so notified in such manner as may be prescribed].”

Now let’s  understand who is eligible to get Aadhar number:

As per notification issued by UIDAI (the authority issuing Aadhar number) on 06.04.2017 a person eligible to obtain Aadhar number would only be a resident individual and hence the requirement to link Aadhar with PAN and quoting of Aadhar in return of Income would only apply to Resident Individual.

Thus, on going through above study it is clear that Non-resident individuals are not required to link their Aadhar with PAN or quote the Aadhar in return form.

This article is just for information purpose and are personal views of the author. It is always advisable to hire a professional for practical execution or you can mail us. If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.

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