PAN turns inoperative until Aadhaar is linked

I’m a non-resident Indian (NRI) who has been staying outdoors India for the previous seven years. I should not have an Aadhaar card since I’ve not been capable of go to India for the previous two years owing to covid. What will now occur to my investments in India because of the order to mandatorily hyperlink the everlasting account quantity (PAN) with an Aadhaar card?

—Souvik Kumar

As per Section 139AA of the Income Tax Act, 1961, each one who has been allotted a PAN, and who’s eligible to an acquire Aadhaar quantity, is required to intimate his Aadhaar quantity to the earnings tax authorities.

Any failure to take action will make the PAN inoperative until the date that the Aadhaar quantity is intimated or linked. The due date to hyperlink Aadhaar with PAN has been prolonged until 30 September.

However, in response to the notification quantity S.O.(E) 1513 dated 11 May 2017, the federal government of India has exempted the next courses of individuals from the provisions of Section 139AA: Individuals residing within the states of Assam, Jammu and Kashmir and Meghalaya; non-residents beneath the earnings tax legislation; senior residents of the age 80 years or extra; and international residents.

The major situation for exemption is that the people don’t possess the Aadhaar quantity or Aadhaar enrolment ID.

Where a person already has an Aadhaar quantity, the above exemption could not apply.

In your case, it’s possible you’ll inform banks or different monetary establishments which are holding your investments in India in regards to the above notification and search an exemption to keep away from any administrative points. You may apply for an Aadhaar card when you arrive in India and get it linked with the PAN.

It can be beneficial that you simply replace your profile within the earnings tax division’s e-filing portal as a “non-resident”.

Sonu Iyer is tax companion and other people advisory companies chief, EY India.

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