Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (2024)

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By Jigar Patel

January 2018

Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (2)

If you are a Non-Resident Indian (NRI), sooner or later you may need one or both of these government issued ID cards. Even for American citizens of Indian descent who officially transact in India, these may be needed or useful.

Lately NRIs who are concerned with making investments, selling properties, filing income tax returns, as well as opening and managing bank accounts in India have experienced a fair share of confusion and jitteriness surrounding a spat of notifications andcirculars surrounding the PAN and Aadhaar Cards. On November 15, 2017, Unique Identification Authorityof India (UIDAI) issued a circular clarifying the requirement of Aadhaar Card for Non-Resident Indians(NRIs), Person of Indian Origins (PIOs), and Overseas Citizens of India (OCIs).

Here’s a concise breakdown of if, when, and who, in context of U.S. residents, need either of those cards.

Requirement of PAN and/or Aadhaar for U.S.residents:

PAN card is required only if a person has any taxable income in India, whether the person is a resident ofIndia or a non-resident of India. There is no requirementor exception about residential status or citizenship.

Aadhaar is the Indian version of America’s Social Security Number (SSN) but contains a photographand can also serve as an address proof. However, only a person who has been residing in India for a periodof 182 days or more in the last 12 months immediately preceding the date of application is eligible for theAadhaar Card.

As physical presence in India is a requirement, anyone, whether an NRI (Indian citizen) or a PIO/OCI (U.S. or foreign citizen with Indian origin), who isnot living in India is not eligible to apply for anAadhaar card.

The following table summarizes requirement of PAN and Aadhaar for US residents:

Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (3)

Conclusion:
• Only persons living in India for more than 6 months in a 12 month period are allowed to have an Aadhaar card. Mandatory requirement of linkingof Aadhaar number with various accounts, investments, or services would not apply to anyone living outside India.

• Any person living outside India, having an account, investment, or transaction as an Indian resident, would need to update his/her status with the respective organization(s) from resident to nonresident. Otherwise, the account/investment may be frozen.

• Any person who is residing abroad and having an Aadhaar card (while on a brief visit to India) would be considered as having obtained the Aadhaar card in contravention of the Aadhaar Act.

Jigar Patel, CFA (USA), MBA-Finance (USA), CA (India), specializes in NRI investments, taxation, and wealth management to serve clients from across the globe. He is an author ofthe book NRI Investments and Taxation: A Small Guide to Big Gains, and his NRI advisory has received the CustomerCentric Business of the Year award in India by Intuit and Bloomberg TV India. He can be reached at jigar@nareshco.com.

Disclaimer: This information has been prepared solely for general information purposes and is not intended to constitute a recommendation, offer, or advice.


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  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (4)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (5)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (6)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (7)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (8)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (9)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (10)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (11)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (12)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (13)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (14)
  • Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (15)

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Khabar: The NRI: PAN and AADHAAR Cards: From Confusion to Clarity (2024)

FAQs

Is Aadhaar and PAN linking mandatory for NRI? ›

NRIs who do not have Aadhaar are exempted from the guideline of linking of PAN-Aadhaar provided they update their residential status as Non-Resident in the income tax portal. However if an NRI holds an Aadhaar, the exemption does not apply, and they will have to link their PAN with Aadhaar.

How to make PAN operative again for NRI? ›

NRIs whose PANs have expired/inoperative are asked to notify their respective JAO, along with supporting papers, and request to update their residential status in the PAN database.

Is the Aadhaar card mandatory for NRI? ›

An Aadhar card is not a proof of Indian citizenship and does not grant any foreigner the right to stay in the country in case they are non-compliant with other requirements. NRIs are not compelled by any mandate to link their bank accounts with Aadhaar if they do not wish to benefit under section 7 of the Aadhaar Act.

How can I update my PAN with NRI status? ›

How to update Status
  1. Visit E portal website.
  2. Log in with your User Id which your PAN number.
  3. Key in your password. ...
  4. If you have not created a login account, create login under NRI status. ...
  5. Select My Profile as seen in image below.
  6. Click on the Edit button and Update your Residential Status as 'Non Resident'

Can I apply for an NRI Aadhaar card without an Indian address? ›

In case the NRI requires an address other than that mentioned in passport, he has option to submit any valid proof of address document available to resident Indian. After completing the enrolment the operator shall return all the documents alongwith an achnowledgement slip containing the applicable charges.

Who is exempt from linking Aadhar and PAN? ›

The exempt category is as follows: Individuals residing in the states of Jammu and Kashmir, Assam and Meghalaya. A non-resident taxable person as per the Income-tax Act, 1961. People aged more than 80 years (Super Senior Citizens).

Can NRI apply for PAN card from USA? ›

Yes, Overseas Citizens of India can get PAN numbers from India. Foreign nationals benefit from International customer service for their application. Foreign citizens and OCI need PAN for India bank accounts.

Do NRI need PAN card to sell property in India? ›

Operational PAN

A Permanent Account Number (PAN) is a must for all big-ticket transactions within the country. An NRI must get an operative PAN for selling the property as an operative PAN is required to apply for a Lower TDS certificate.

Is PAN deactivated for NRI? ›

NRI's: ITD has mapped the residential status of NRIs if they have filed an ITR in any of the last three Assessment Years or intimated the jurisdictional assessing officer (JAO) of their residential status. If any of the aforementioned conditions are not met, NRI PANs are rendered inoperative.

Can US citizens have an Aadhaar card? ›

Yes, a foreign citizen can get an Aadhaar Card in India, which is a government-issued document that serves as proof of identity and address in India. Foreign citizens, including NRIs, can apply for an Aadhaar Card if they are staying in India for a considerable period of time.

Can a NRI with OCI get an Aadhaar card in India? ›

India Simplifies Rules and Introduces Specific Forms. Now NRIs and OCI cardholders are eligible to obtain an Aadhaar Card given they fulfil certain criteria. The government of India has brought new Aadhaar rules to make it easier and simpler for them.

Can a US citizen with an OCI get an Aadhaar card? ›

OCI Cardholders who stay in India for a long time (over 182 days in twelve months immediately preceding the date of application for enrolment) and have an Indian address can also enroll for Aadhaar Card in India.

How to declare NRI status in India? ›

The eligibility criteria for NRI status are below:
  1. An Indian citizen stays abroad for 183 days or more in one financial year.
  2. An Indian citizen stays in India for less than 365 days in the last four years from the current assessment year and less than 60 days during the year.

Do NRIs have to file tax returns in India? ›

As an NRI, PIO, or OCI, you may be required to file tax returns in India if your Indian income surpasses the specified threshold or if you seek to claim refunds for excess tax deductions. While filing an ITR is mandatory only under certain circ*mstances, voluntary filing can be beneficial in many ways.

When should I change my status to NRI? ›

RBI's NRI Definition: An individual is an NRI if they've not resided in India for more than 182 days during the preceding financial year.

How many days does it take to link PAN to Aadhaar? ›

How long does it usually take for my PAN to get linked with Aadhaar after I have completed the process? It takes upto 6-7 days for linking PAN and Aadhaar. Once you have started the linking process by going on the Income Tax Portal, please click on the button below to check the linking status.

Is PAN card mandatory for everyone in India? ›

Hence, it is not acceptable as proof of Indian citizenship. Therefore, PAN is optional and voluntary just like passport, Driving License, Aadhar card etc. However, its use is mandatory at required places like Driving License for driving and passport for foreign travels.

How can I link my Aadhar card with PAN card online? ›

Step 1: Go to e-filing portal home page and click on Link Aadhaar under Quick Links. Step 2: Enter the PAN and Aadhaar and click Validate. Step 3: Enter the mandatory details as required and click on Link Aadhaar.

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