No need for NRIs to have Aadhaar
MANDATORY: Non-Resident Indians must submit proof of resident status to banks
Non-Resident Indians should present the proof of their non-resident status to the respective bank, in the wake of Indian government’s decision making it mandatory to link all resident bank accounts with Aadhaar.
There has been confusion among the ranks of the Indians expatriates on whether they are eligible to have to Aadhaar number or not.
The Unique Identification Authority of India (UDAI) said in a statement such mandatory quoting of Aadhaar or ID shall apply only to a person who is eligible to obtain Aadhaar number.
As per the Aadhaar Act of 2016, only a resident individual is entitled to obtain Aadhaar. Resident as per the said Act means an individual who has resided in India for a period or periods amounting in all to 182 days or more in the twelve months immediately preceding the date of application for enrolment. Accordingly, the requirement to quote Aadhaar as per section 139AA of the Income-tax Act shall not apply to an individual who is not a resident as per the Aadhaar Act, 2016.
Section 139AA of the Income-tax Act, 1961 as introduced by the Finance Act, 2017 provides for mandatory quoting of Aadhaar / Enrolment ID of application form, for filing of return of in-come and for making an application for allotment of Permanent Account Number with effect from July 1, 2017.
As per gazette notification of Ministry of Finance, individuals are required to provide Aadhaar number for linking all their bank accounts before December 31, 2017.
Meanwnile, the Indian media has reported that the NRIs will not have to give details of their bank accounts held outside the country while filing their income tax returns, if they are not seeking tax refunds.
According to Central Board of Direct Taxes (CBDT), providing details of foreign bank accounts) is not mandatory. “It is optional. It is for cases where refund is sought,” said an official. He said the details of foreign bank accounts to be filed in only one condition, that is, if they (NRIs) are seeking a refund.