All you need to know about PAN, Aadhaar cards
We address some of the most frequentlyasked questions that plague the minds of most NRIs about how to apply for PAN and Aaadhaar cards and more.
Do NRIs need to file income tax returns?
• An NRI is not required to file income tax return in India if he has no income arising in India.
• An NRI’s income tax depends upon his residential status for the year. If the status is ‘NRI’, then income which is earned or accrued in India is taxable in India.
• A person is considered an Indian resident for a financial year:
• If in India for at least six months (182 days to be exact) during the financial year or•
In India for two months (60 days) for the year in the previous year and has lived for one whole year (365 days) in the last four years.
• In simple words, a resident Indian is supposed to pay taxes on income earned in India during a particular financial year. So, any income that has been either received in India or accrued in India shall form part of taxable income of NRI.
Further, income tax return filing is required by NRIs if:
• Taxable income in India exceeds basic exemption limit of ₹250,000 during a financial year. • Short-term capital gain/long-term capital gain on sale of investments or assets. • Want to claim any refund. • Want to carry forward any losses.
How can NRIs apply for a PAN card?
• Application for fresh allotment of PAN can be made through the Internet. Further, requests for changes or correction in PAN data or request for reprint of PAN card (for an existing PAN) may also be made through the Internet.
• Online application can be made either through the portal of the National Securities Depository Limited (NSDL) or portal of UTITSL. Payment of application fee can be made through credit/debit card, demand draft or net banking. Once the application and payment is accepted, the applicant is required to send the supporting documents through courier/post to NSDL/UTITSL. Only after the receipt of the documents, the PAN application will be processed by NSDL/UTITSL.
• For new PAN applications, in case of individual and HUF applicants if address for communication is selected as office, then proof of office address along with proof of residential address is to be submitted to NSDL w.e.f. applications made on and after November 1, 2009.
• As per RBI guidelines, the entities making e-commerce transactions are required to provide PIN (Personal Identification Number) while executing an online transaction. Therefore, before making payment for online PAN/TAN applications using credit card/debit card/net banking, applicant is required to obtain PIN from banks whose credit card/debt card/net banking is being used.
Does the mandatory linking of the PANAadhaar cards rule apply to NRIs?
As Aadhaar card is not compulsory for NRIs, so they are exempted from mandatory linking. It has now become mandatory for you to link your PAN with Aadhaar with effect from July 1, 2017, as per the income tax laws. However, the government has exempted certain class of individuals from linking these two documents subject to certain conditions.
Even before the Supreme Court Judgement was announced upholding the legality of section 139AA, the Central Board of Direct Taxes (CBDT) had, in its notification dated May 11, 2017, clarified the categories of individuals who are exempted from compulsorily linking their PAN with Aadhaar by exempting them from the purview of Section 139AA of the Income Tax Act.
CBDT has notified that Section 139AA of the Income Tax Act is not applicable to the following individuals:
(i) Those categorised as Non-resident Indians as per the Income Tax Laws (ii) Not a citizen of India (iii) Is of age 80 years or more at any time during the tax year
(iv) Residents of the states of Assam, Meghalaya and Jammu and Kashmir
The above-mentioned categories of Individuals are exempted from the purview of section 139AA i.e. exempted from compulsory linking of PAN and Aadhaar, only if they do not possess Aadhaar or Aadhaar Enrolment ID.