AADHAAR Number – Applicability In The Income Tax Provisions
Finance Act 2017 – New Provision Section 139AA Inserted: every person who is eligible to obtain Aadhaar number shall, on or after the 1st day of July 2017, quote Aadhaar number –
- In the application form for allotment of permanent account number;
- In the return of income;
Provided, 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.
Applicability of Section 139AA on Non-Residents (i.e. NRIs, PIOs, OCIs etc): Reference to clarification by Govt of India (Press Information Bureau: 05April2017), such mandatory quoting of Aadhaar or Enrolment ID shall apply only to a person who is eligible to obtain Aadhaar number. As per the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, only a resident individual is entitled to obtain Aadhaar. Resident, as per the said Act, means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrolment. Accordingly, the requirement to quote Aadhaar as per section 139AA of the Income-tax Act shall not apply to an individual who is not a resident as per the Aadhaar Act, 2016. Hence, provisions of section 139AA are not applicable on NRIs, PIOs, OCIs, Foreign Residents etc.
This Article clarifies certain FAQs of NRIs, PIOs eg:
- What is the new law in relation to Aadhaar applicability in the Income Tax Act?
- Whether Aadhaar number is mandatory in the Income Tax Return filing in India by NRIs?
- Whether Non-residents (including NRIs, PIOs, OCIs) are required to obtain Aadhaar for filing ITR in India?
- I am NRI. Do I need to obtain Aadhaar for maintaining my Income Tax Records in India?