Daijiworld Media Network

NRI accounts to be unaffected, as Central government clarifies that mandatory linking of bank accounts to Aadhaar card is not applicable to NRI accounts.

Dubai, Jun 19: To boost its drive against tax evasion and unaccounted transactions, the central government recently authorised the mandatory linking of Aadhaar card and bank accounts. Besides, the government has also announced that any transaction beyond Rs 50,000 will also require the card issued by the Unique Identification Authority of India (UIDAI).

The sudden announcement has not only created flutters in the domestic scenario of the country but also across the borders. Non-resident Indians (NRIs), who are exempted from possession of Aadhaar card, are now trying to clarify with authorities if their NRE (Non-Resident External) bank accounts will be declared invalid or if it may affect their remittance if they do not produce Aadhaar card by December 31, 2017.

However, the spokesperson for the commissioner of Income Tax and Central Board of Direct Taxes Meenakshi J Goswami said that mandatory quoting of Aadhaar will be applicable for the resident individual entitled to obtain the card as per Aadhaar Act 2016.

Further she elaborated on the definition of 'resident' adding, "An individual who has resided in India for a period of 182 days or more, in the 12 months immediately preceding the date of application for enrollment." Therefore the requirement to quote Aadhaar (as per Section 139AA of the Income tax Act) shall not apply to an individual non-resident.

The central government's website on UIDAI explains, "Section 139AA of the Income-tax Act, 1961 as introduced by the Finance Act, 2017 provides for mandatory quoting of Aadhaar / Enrolment ID of Aadhaar application form, for filing of return of income and for making an application for allotment of Permanent Account Number with effect from 1st July, 2017.

"It is clarified that 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.

"Moreover, Filing details of the Aadhaar number while submitting Income Tax returns from July 2017 does not apply to NRIs."