Do NRIs Need Aadhaar Card To File Tax Returns?

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Are you an NRI? Do you know whether you need to link your Aadhaar card number for tax returns? Non-resident Indians are exempted from the mandatory requirement of quoting Aadhaar to file tax returns in India, which is effective July 1, Government of India officials and experts clarified.

Why it's not mandatory?

According to the Aadhaar Act, only Indian residents are entitled to get the identification number. NRIs are not eligible to apply for this 12 digits unique identity number. That is why the July 31 deadline to obtain Aadhaar card for filing Income Tax returns does not apply in the case of non-resident Indians.

Who needs Aadhaar?

Aadhaar will be made compulsory for those NRIs who had resided in India for more than 182 days in aggregate in the past 12 months. A resident is an individual who had resided in India for a period or periods amounting in all to 182 days or more in the 12 months immediately preceding the date of application for enrollment. If you are an NRI and had stayed in India less than 182 days in the preceding 12- month period, you don't need to quote Aadhaar as per Sec 139AA of the IT Act.

Finance Act 2017

According to the Finance Act 2017, it is mandatory to enroll for Aadhaar to file tax returns in India or apply for a permanent account number or keep the existing PAN active, effective July 1.

Aadhaar bank account linking

As per the Aadhaar Act 2016, only a resident individual is entitled to obtain Aadhaar. The Indian government has made it mandatory for all existing resident Indian bank account holders to provide their Aadhaar numbers to their banks by December 31, 2017. If they fail, the account will no longer be operational, says a notification from the revenue department.

Aadhaar for new bank account

Providing Aadhaar card number is made compulsory for opening a new bank account in the country. Aadhaar is also required for availing benefits of various social welfare schemes. If your PAN is not linked with your Aadhaar card number, it will become invalid after December 31.

Aadhaar as identity proof

With a view to giving a unique and single identification number to all, the 12-digit unique Aadhaar card number is issued by the Indian government to every individual resident of India. The Aadhaar card includes demographic and biometric information, of every resident. Now Aadhaar is a must for availing LPG subsidy, EPF scheme, Jandhan Yojana, to get the driving license and much more.

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Read more about: tax, aadhaar, nri
Story first published: Thursday, June 22, 2017, 12:43 [IST]
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