SKP Tax Alert
Volume 10 Issue 11 | 12 May 2017
Aadhaar relief for non-residents and foreign nationals

The Finance Act, 2017 had made it mandatory for individual taxpayers to quote their Aadhaar number or Enrolment ID of Aadhaar application form for filing tax returns in India. Taxpayers were also required to their Aadhaar to their Permanent Account Number (PAN). These requirements were to come into effect from 1 July 2017.

In line with the amendments by the Finance Act, 2017, the Government of India released a notification[1] wherein all classes of persons, including expatriates and foreign nationals, were required to obtain an Aadhaar number/registration and also link the same with their PAN on or before 1 July 2017. The only exception was provided for individuals residing in India for less than 182 days in the 12 months immediately preceding the date of application for enrolment for Aadhaar.

This notification resulted in substantial hardships for foreign nationals and expatriates working in India. Taking cognisance of the above, the government released another notification[2] relaxing the applicability of obtaining an Aadhaar number and linking the same with their PAN in certain cases. 

As per the said notification, following people are exempted from the applicability of obtaining Aadhaar and linking the same with their PAN:
  • Persons residing in the states of Assam, Jammu and Kashmir and Meghalaya;
  • A non-resident  as per the Indian Income Tax Act;
  • A person who is 80 years old or more at any time during the previous year; and
  • A person who is not a citizen of India.
The aforesaid notification will be applicable from 1 July 2017.
SKP's comments
This notification relaxing the applicability of non-residents and foreign nationals obtaining an Aadhaar number and linking the same with their PAN is a welcome move by the government and would help create a compliance-friendly environment for non-residents and foreign nationals in India.
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