NRIs face problems for not linking PAN to Aadhar

The highest among NRIs are Non-Resident Gujaratis who are Faceing PAN Card Deactivation Over Failure to Link Aadhaar, Seek CA Assistance for Reactivation

The income-tax (IT) department has taken stringent measures, freezing approximately 11 crore PAN cards across India that remain unlinked to Aadhaar, and among those affected are non-resident Indians (NRIs), including a notable number of non-resident Gujaratis (NRGs), according to a report by timesofindia.indiatimes.com.

Numerous PAN numbers belonging to NRIs, especially non-resident Gujaratis, have been deactivated due to the absence of Aadhaar linkage. Consequently, chartered accountants (CAs) are witnessing a surge in inquiries from NRGs seeking assistance to reactivate their accounts by updating their status as ‘non-resident’ with the income-tax department.

To reinstate their PAN, NRIs must demonstrate that they spent fewer than 182 days in India during a given year. CA Karim Lakhani explained, “Many NRIs left India as students and have since settled abroad, often neglecting to update their status as non-residents. This oversight results in the deactivation of their PAN cards due to non-linkage.”

Lakhani highlighted the implications of such deactivation, stating, “These NRIs may miss out on benefits related to shares, mutual funds, SIPs, insurance, and even interest on pending refunds. Additionally, they could encounter challenges in transferring money from India after selling their property.”

In light of these developments, CAs and tax experts are urging NRIs, particularly non-resident Gujaratis, to promptly address the PAN-Aadhaar linkage requirements to avoid financial repercussions and ensure seamless access to benefits

CAs emphasize that NRIs, in general, may lack awareness of the norms and deadlines for PAN-Aadhaar linkage. Consequently, NRGs with deactivated PAN cards face obstacles in claiming their 20% TDS, obtaining income tax refunds, or making new investments. Furthermore, some NRIs inadvertently file returns as residents of India.

Experts reveal that a significant number of NRGs are not Aadhaar card holders, emphasizing the need for them to update their non-resident status with the income-tax department through documentary evidence. CA Jainik Vakil, Chairman of the Direct Tax Committee at GCCI, cautioned, “NRIs filing returns as residents despite being non-residents must disclose their foreign income in their returns.”

In light of these developments, CAs and tax experts are urging NRIs, particularly non-resident Gujaratis, to promptly address the PAN-Aadhaar linkage requirements to avoid financial repercussions and ensure seamless access to benefits.

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