PAN Aadhaar Linking for NRI: Should NRIs also link PAN and Aadhaar? What is the process for this? The deadline for linking Aadhaar with Permanent Account Number (PAN) is june 30, 2023. The government recently extended this deadline. If PAN is not linked to Aadhaar within this deadline. The pan will be disabled. Without PAN, income tax returns cannot be filed, and stock market transactions like NSE, and BSE cannot be done. Apart from this many financial services cannot be done. Certain categories of individuals are exempted from the requirement of linking Aadhaar and PAN. According to the income tax department portal, Aadhaar-PAN linking is not mandatory for the following categories of individuals:
- Non-Resident indians (NRIs) as per Income Tax Act 1961.
- people of assam and meghalaya and residents of the Union Territory of Jammu and Kashmir.
- Age 80 or above as per the previous year.
- Persons who are not citizens of India.
Under the Income Tax Act, NRIs can link PAN and Aadhaar, but it is not mandatory for them. However, if an nri has not linked their PAN and Aadhaar, they have to update their residential status as nri in the Income Tax portal online. If the Income Tax department is not informed about the residential status and PAN-Aadhaar is not linked, the PAN may not be functional.
For remaining taxpayers, Aadhaar-PAN linkage is mandatory. The government has extended the deadline for PAN-Aadhaar linking by another three months till june 30. All Aadhaar-PAN holders can link them on the e-filing portal of the Income Tax Department. Earlier, the deadline was set to end on march 31, 2023. Last year, the Income Tax Department extended this deadline by three months with a late fee of Rs 500. It was further extended till march 31, 2023, with a penalty of Rs 1,000.
According to a recent circular issued by the Central Board of Direct Taxes (CBDT), if an individual's PAN becomes inactive, he or she will be liable for all consequences under the Income Tax Act. Due to this, those people have to face many impacts. The provisions of the Income Tax Act have made Aadhaar PAN linking mandatory for all individuals except certain categories.
click and follow Indiaherald WhatsApp channel