India Relocation: Identification Card Mandatory for Foreign Nationals
Posted by: Fabiana Hershfield, Supply Chain Manager
The Aadhaar Card – a 12-digit unique identification number issued to Indian residents by the Unique Identification Authority of India (UDAI) – will be mandatory for all foreign nationals who have resided in India for 182 days or more in the preceding year.
Previously, foreign nationals only needed a Permanent Account Number (PAN) to file their income tax returns. Effective July 1, foreign nationals without an Aadhaar Card will have their PAN cancelled, and therefore will not be able to file their income tax returns.
Foreign nationals who will have left India permanently on or after July 1, 2017, but had resided in India for 182 days or more in the preceding year and have pending tax filing obligations in India, will also be required to obtain the Aadhaar Card.
Application forms for the Aadhaar Card are available online and at authorized Aadhaar centers. Applicants must submit the completed form and supporting documents in person at an Aadhaar center based on their residential jurisdiction in India. As part of the process, foreign nationals will be required to submit biometric data.
What This Means for Foreign Nationals
Without an Aadhaar Card, foreign nationals will not be able to file their income tax return, which will impact their visa renewals in India, as it is mandatory to submit the filing acknowledgement (ITR-V) along with the application.
Foreign nationals with special endorsements in their Residential Permits issued by the Foreigner Regional Registration Offices/Foreigner Registration Offices directing them to submit the ITR-V within a specified period will not be permitted to travel internationally without having the endorsement revoked.
Affected foreign nationals should contact their tax consultant for assistance with obtaining the Aadhaar Card. Our immigration partner, Fragomen is closely following this subject and will issue further client alerts as developments occur.
Fragomen in India is Fragomen Immigration Services India (Pvt) Ltd., operating exclusively as an immigration consultancy and not as a law firm in India.
© 2017 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved. This alert is for informational purposes only and does not constitute legal advice or give rise to an attorney-client relationship between you and Fragomen Worldwide. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen Worldwide.
Cartus Recommendations for Relocation Managers
As a result of this new situation, Cartus recommends that relocation managers:
- Set expectations with the host business unit and foreign national regarding the Aadhaar card requirement.
- Ensure that transferees know that they must link the card to their Indian bank accounts, mobile phone numbers, and Permanent Account Numbers (PAN) by submitting a copy of the card to the respective service provider. It is important that the transferee completes the required steps within the required timeline in order to avoid any disruptions to their banking or mobile service.
- Note that the deadline to complete these steps is March 31, 2018.
- Understand that assistance in obtaining this card can either be delivered by the client preferred tax provider or by a Cartus Destination Service Provider.
As the regulations and requirements around the Aadhaar card continue to be uncertain and changing, we would advise, as a precautionary approach, that clients look at having their transferees apply for the Aadhaar card without delay to avoid any disruptions to their banking or mobile services. Cartus will keep you informed of any changes to this process as the deadline approaches.
Should you require any further information about this or any other aspect of visa/immigration planning, please seek specialist advice from your immigration provider.