Formula Banner

Latest Updates

INDIA – New Deadline for Linking Aadhaar to PAN

, 04/07/2018

The Central Board of Direct Taxes (CBDT) has extended the deadline for residents to link their Aadhaar number to their Permanent Account Number (PAN) until 31 March 2019.

In March 2018, the Supreme Court of India ordered the deadline for linking Aadhaar with various other services to be extended until it delivers its judgement on petitions challenging the validity of the Aadhaar biometric scheme.

Background

Aadhaar is a 12-digit unique identification number issued on a card by the Indian government to every individual resident of India.

The Finance Act 2017 made it mandatory to quote an Aadhaar number to file income tax returns (ITR) or to apply for or renew a PAN (Permanent Account Number).

Then, as we reported here, on 11 May 2017, the Indian Ministry of Finance issued a notification exempting certain taxpayers, including foreign nationals, from the requirement to submit an Aadhaar number when filing tax returns.

Currently, foreign nationals who have been resident in India for more than 182 days in the previous 12 months are advised to submit an Aadhaar number with their tax return, although this is not yet mandatory, and Aadhaar is intended to be a requirement for banking, mobile phone and other services.

Action Items

Foreign nationals resident in India are advised to obtain an Aadhaar number and to link it to their PAN, bank, mobile phone and insurance accounts before the eventual deadline.