11 May 2017

INDIA: Aadhaar Card to be mandatory for tax returns

Starting 1 July, all foreign national residents required to submit their Income Tax Return (ITR) must obtain an Aadhaar ID card in order to do so.

The Minister of Finance has published the Finance Act of 2017, which states that an Aadhaar number will be mandatory to file ITR’s from 1 July onward. Foreign nationals who have stayed in India for more than 182 days in the last 12 months are required to pay income tax and therefore must apply for an ITR. The Aadhaar ID card is needed to submit the income tax return acknowledgement form.

Foreign nationals who have left India might need to visit the country once more to apply for an Aadhaar card if they must still submit an ITR.

Foreign nationals required to apply for an Aadhaar must visit an enrolment centre in India to have their biometric information collected in person. The Unique Identification Authority of India (UDAI) in turn issues the Aadhaar identification cards. The Aadhaar is a unique identification code issued for every resident of India.

How does this affect the client?

The new Aadhaar requirement adds an additional step in the process of the ITR submission and may cost foreign nationals a considerable amount of extra time


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