I’m a non-resident Indian (NRI) who has been staying outside India for the past seven years. I do not have an Aadhaar card since I have not been able to go to India for the past two years owing to covid. What will now happen to my investments in India as a result of the order to mandatorily link the permanent account number (PAN) with an Aadhaar card?
—Souvik Kumar
As per Section 139AA of the Income Tax Act, 1961, every person who has been allotted a PAN, and who is eligible to an obtain Aadhaar number, is required to intimate his Aadhaar number to the income tax authorities.
Any failure to do so will make the PAN inoperative till the date that the Aadhaar number is intimated or linked. The due date to link Aadhaar with PAN has been extended till 30 September.
However, according to the notification number S.O.(E) 1513 dated 11 May 2017, the government of India has exempted the following classes of people from the provisions of Section 139AA: Individuals residing in the states of Assam, Jammu and Kashmir and Meghalaya; non-residents under the income tax law; senior citizens of the age 80 years or more; and foreign citizens.
The primary condition for exemption is that the individuals do not possess the Aadhaar number or Aadhaar enrolment ID.
Where an individual already has an Aadhaar number, the above exemption may not apply.
In your case, you may inform banks or other financial institutions that are holding your investments in India about the above notification and seek an exemption to avoid any administrative issues. You may also apply for an Aadhaar card once you arrive in India and get it linked with the PAN.
It is also recommended that you update your profile in the income tax department’s e-filing portal as a “non-resident”.
Sonu Iyer is tax partner and people advisory services leader, EY India.
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