How NRIs Can Link Aadhaar with PAN?

In furtherance of the thrust to boost digitalization and a unified tax system, the Indian government has made it mandatory for individuals to link their Aadhaar card with a Permanent Account Number (PAN). Considering this, if you are a resident Indian, to manage your financial transactions, you need to link Aadhaar with PAN. However, for NRIs, it is optional. If they want to file tax returns in India, conduct financial transactions, and more, they can link their Aadhaar with PAN. 

Want to know how NRIs can link aadhaar with PAN? This blog tells you the complete process to link your Aadhaar card to PAN card. So read on and gather all the information. 

Your Guide to PAN-Aadhaar Linking for NRIs

Before linking the Aadhaar to PAN cards, NRIs need to consider some points. These are as follows:

• Requirements: Mandatory, the PAN-Aadhaar linking applies to resident Indians. However, being an NRI, if you are liable to pay income tax returns in India, you want to open a bank account or conduct a financial transaction in India. In this scenario, linking your aadhaar card with PAN can be beneficial for you.
• Benefits: Linking your Aadhaar with your PAN eases tax filing, streamlines several financial processes, and expedites refunds in India.
• Difficulties: Due to their physical absence in India, NRIs may face issues in linking their Aadhaar with PAN. It is because Aadhaar enrolment generally needs physical verification of the individual, which is quite difficult for NRIs living overseas. 

This was your guide to PAN-Aadhaar linking for NRIs, which you need to consider. Moving ahead, let's know the process to link Aadhaar to the PAN card. 

Process to Link Aadhaar to PAN Card

There are two ways by which NRIs can link Aadhaar with PAN card, i.e., online linking and through Jurisdictional Assessing Officer (JAO). To provide you with an idea of it, here is a breakdown of the linking process for NRIs.

Online Linking

You can link your Aadhaar with your PAN card online if you apply for the Aadhaar card while living overseas. Here is how you can link your Aadhaar with a PAN card online:

• Go to the official website of the Income Tax Department e-filing portal.
• Now, from the 'quick links' section, click on the 'link Aadhaar' option. 
• Mention your PAN card number, Aadhaar card number, and your registered contact number.
• Using the OTP you received on your contact number, verify the details. 
• If the details are accurate, your PAN card will be linked to your Aadhaar card. 

Through Jurisdictional Assessing Officer (JAO)

This linking method is accurate when NRIs do not register themselves for Aadhaar abroad. Here is how in this process you can link your Aadhaar with your PAN:

• Using the official website of the Income Tax Department, locate your JAO.
• From the website, download Form VCP (Voluntary Correction of PAN Data).
• Fill out the requested details in the form, along with stating the requirement to link your PAN card with your Aadhaar card.
• With the form, attach a copy of your PAN card, passport for showing your NRI status, and a document showing proof of your current abroad address.
• Once you fill out the form and attach all the requested documents, send them to your JAO in person or by mail.
• Further, the JAO will verify your details and begin the PAN-Aadhaar linking process. 

So, here is how you can simply link your Aadhaar with your PAN. Moving further, now let's know the things you need to consider before initiating this linking process. 

Things to Consider Before Linking Aadhaar to PAN Card

NRIs should consider the following things before linking their Aadhaar to a PAN card:

• Name Mismatch: Before starting the linking process, NRIs should consider whether there is a minor name mismatch on the Aadhaar and PAN. It is because it can delay the process. Additionally, OTP verification may also be required in this.
• Overseas Communication: Ensure the number linked to your Aadhaar card is active to receive OTPs during the linking process. Additionally, it is vital when you are linking Aadhaar to PAN from abroad.
• Date of Birth and Gender: Ensure that the date of birth and gender mentioned in both the cards are the same. Any mismatch in these details can delay the process. 

These were some of the things NRIs need to consider before linking Aadhaar to a PAN card. Moving ahead, let's know how to check if your Aadhaar

How to Check if Your Aadhaar Is Linked to Your PAN Card?

You can simply check whether your Aadhaar card is linked to your PAN card or not using the following methods:

Income Tax E-Filing Portal: Go to the official Income Tax Department e-filing portal. From there, click on the link Aadhaar status. Now, to verify the linking status, mention your PAN and Aadhaar status.

Via SMS: To check the status via SMS, type UIDPAN, give space, then mention your Aadhaar number, give space, and then mention your PAN number. Now, send this message to either 56161 or 567678. From the government services, you will get a reply message informing you of the PAN-Aadhaar linking status.

• If your PAN-Aadhaar is linked, you will get the message, "Aadhaar is already associated with PAN (number) in the ITD database. Thank you for using our services."
• In case your PAN-Aadhaar is not linked, the message will be, "Aadhaar is not associated with PAN (number) in the ITD database. Thank you for using our services."

This is how NRIs can check their PAN Aadhaar link status. Moving further, let's know the circumstances you face if you have not linked your Aadhaar with PAN. 

What If You Have Not Linked Your Aadhaar With PAN?

In case you have not linked your Aadhaar with your PAN card, you can face the following consequences:

• PAN Inoperative: If you fail to link your Aadhaar with a PAN card, your PAN card gets inactive. This means you will no longer be able to use your PAN for financial transactions in India.
• Delays in Refund and Lost Interest: Until your PAN card is linked with your Aadhaar card, all your eligible tax refunds will be put on hold. Also, on these delayed refunds, you will not receive interest.
• Increased Tax Collection at Source (TCS): You need to pay double the applicable Taxes Collected at Source (TCS) rate on your payments or at least 5%, whichever is more. Considering this, the maximum limit of it is 20%.
• Higher Tax Withholding: Additionally, you are also liable to pay higher taxes deducted at source (TDS) on your received income or a flat 20% whichever is higher. This is applicable to the deducted tax throughout the year. 
• Penalty for Late Linking: If you link your Aadhaar card with your PAN card after the due date, you are liable to pay INR 1,000 as a penalty. 

These were some of the circumstances that NRIs can face when they do not link their Aadhaar to a PAN card. Moving ahead, let's know the exemptions for NRIs. 

Exemptions for NRIs

The Income Tax Department vide notifications dated 11th May 2017, exempted certain individuals who do not need to link their Aadhaar with their PAN card. Considering these, these exemptions are only available when you do not have or applied for an Aadhaar number.

• Residents of Meghalaya, Jammu & Kashmir, and Assam: For people living in these specific areas, it is not mandatory to link their Aadhaar card with their PAN card.
• Non-Resident Indians (NRIs): Under the Income Tax Act, 1961, if you are classified as an NRI, you are exempt from linking your PAN with Aadhaar. 
• Senior Citizens (Age 80+): During the previous year, individuals 80 years of age or older were exempt from linking their Aadhaar with PAN. 
• Non-Citizens of India: If you are not an Indian citizen, you are also exempt.

However, for NRIs, this exemption is only valid if they do not have or have not applied for an Aadhaar card in India. 

Final Thoughts

Lastly, for NRIs, it is not mandatory to link Aadhaar with PAN. However, doing so provides them with several benefits for managing their financial activities in India. Considering this, NRIs who have registered for an Aadhaar card from abroad can link it online. Additionally, for those who have not registered the card from overseas, the linking process might include contacting the Jurisdictional Assessing Officer. 

Further, if you are facing issues in linking your PAN card with your Aadhaar card, connect with Savetaxs. We have a team of professionals who can assist with your Aadhaar-PAN linking process. Also, if you want, they can also help you with your tax obligations in India.