Advisory for Non Residents to get profile status updated on Income tax Portal

Advisory for Non Residents to get the profile status updated on the Income tax Portal/ NSDL to prevent the PAN from becoming inoperative

The SC, in its judgement, upheld the legal validity of this section in its entirety and provided partial relief. Vide Press Release dated 10 June 2017 (pursuant to the SC decision)

 Various Extensions By CBDT:

CBDT initially made it mandatory to link PAN with adhaar number till 30^th Septmeber 2019 which was extended to 31t December 2019 vide CBDT Notification No 75/2019 dated 28^th September 2019; which was again extended to 31^st march 2020 vide Notification no 107/2019 dated 30^th December 2019. The government has already extended the deadline thrice due to Covid-19 – first from March 31, 2020, to June 30, 2020, then to March 31, 2021 and then again to June 30, 2021 vide CBDT Press Release dated 31^st March 2021. The date was extended to 30^th September 2021 vide Notification no 74/2021 dated 25^th June 2021 which had been extended to 31^st March 2022 vide CBDT Press Release dated 17^th September 2021.

Recent amendments to the Income Tax Rules make it mandatory to link your Aadhaar to your PAN, as notified by Government of India. If they are not linked, PAN shall be deemed to have become inoperative, after 31st March 2022.

1. How to link Aadhaar with PAN:

It is easy to link your Aadhaar with your PAN, by following any of the two steps below:

1. On the new Income Tax Portal, there is a “Link Aadhaar” facility (https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar). Please keep your mobile phone handy to receive and submit the OTP [One-Time Password] during the process. (OR)

2. Send a SMS to 567678 or 56161 from your registered mobile number in the following format: UIDPAN[SPACE][12-digit Aadhaar][SPACE][10-digit PAN]. Example: UIDPAN 123456789012 ABCDE1234F

2. Consequence of Non linking of Pan with adhaar:

If you do not link your Aadhaar with your PAN, on or before 31st March 2022, a higher tax may be deducted at source on your income distribution or capital withdrawals. Future transactions, both financial and non-financial, may also be restricted effective 01st April 2022.

3. NRIs to update their status

If you are not required to comply with linking of your PAN with Aadhaar by virtue of being an NRI, you may please have the status updated with Income Tax / NSDL suitably, on or before 31st March 2022.

4. Steps for NRIs to check and update their status

If you are a non- resident you can check your residential status registered with income tax department by following below steps:

1. Go to the link: https://www.incometax.gov.in/iec/foportal

2. Click on login button and login with your PAN as login ID and enter password.

3. Then go to My Profile Section:

Now your profile registered with Income Tax Portal will reflect, make sure all the details are correct and residential status shown as non-resident.

If you found any discrepancies then update immediately with Income Tax department otherwise your PAN will be inoperative.

The same will be operative only after the date of linking with aadhaar PAN. The Manner of Making PAN inoperative was notified vide notification no. 11/2020 dated 13^th February 2020.

https://incometaxindia.gov.in/communications/notification/notification_11_2020_new.pdf

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Extract of Section 139AA of Income Tax Act, 1961.

Quoting of Aadhaar number.

139AA. (1) Every person who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number—

 (i)  in the application form for allotment of permanent account number;

(ii)  in the return of income:

Provided that where the person does not possess the Aadhaar Number, the Enrolment ID of Aadhaar application form issued to him at the time of enrolment shall be quoted in the application for permanent account number or, as the case may be, in the return of income furnished by him.

(2) Every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to such authority in such form and manner as may be prescribed, on or before a date to be notified^63a by the Central Government in the Official Gazette:

Provided that in case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be ⁶⁴[made inoperative after the date so notified in such manner as may be prescribed⁶⁵].

(3) The provisions of this section shall not apply to such person or class or classes of persons or any State or part of any State, as may be notified by the Central Government in this behalf, in the Official Gazette.

Explanation.—For the purposes of this section, the expressions—

(i) “Aadhaar number”, “Enrolment” and “resident” shall have the same meanings respectively assigned to them in clauses (a), (m) and (v) of section 2 of the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016 (18 of 2016);

(ii) “Enrolment ID” means a 28 digit Enrolment Identification Number issued to a resident at the time of enrolment.

(With contributions from Assistant Mr Himanshu Hareet)

Disclaimer: While every care has been taken to ensure the accuracy/ authenticity of the above, the readers are advised to recheck/ reconfirm the same from the original sources/ relevant departments. The company shall in no way be responsible for any loss or damage suffered to any person on account of the same. The views expressed are personal opinion, compilation and is no way, to be used for any legal opinion, matters