Budget 2019 on Aadhaar: File Taxes, No Waiting Period For NRIs

NRIs can get an Aadhaar card without having to wait for 180 days.

(Photo: The Quint)

In major Aadhaar related announcements in her maiden Union Budget speech, Finance Minister Nirmala Sitharaman proposed that PAN and Aadhaar be used interchangeably for filing taxes. Earlier, the Finance Minister had also proposed that Non-Resident Indians (NRI) be issued Aadhaar cards without having to wait for the stipulated 180-day period.

Aadhaar For NRIs

NRIs with a valid passport will now be eligible for an Aadhaar number issued by the UIDAI .

Till now, as per the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, only a resident who has resided in India for a period or periods amounting in all to 182 days or more in the 12 months immediately preceding the date of application for enrollment is eligible for Aadhaar.

According to UIDAI’s website, 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.

Aadhaar For Tax Filing

Sitharaman also proposed that Aadhaar and PAN be used interchangeably for filing tax returns.

Speaking on the subject of ease of doing business, she announced that those who do not possess a PAN number can simply quote the 12-digit Aadhaar number instead.

“More than 120 crore Indians now have Aadhaar,” Sitharaman told the House.

Aadhaar For Bank Accounts and Mobile Connections

Incidentally, on the eve of the Union Budget, The Aadhaar and Other Laws (Amendment) Bill, 2019, was passed by a voice vote. The amendment essentially seeks to reinstate the use of the Aadhaar infrastructure by private companies for authentication and verification purposes.

Issued as an ordinance on 28 February and promulgated by President Ramnath Kovind, the Aadhaar Amendment Bill, introduced in the the current Budget session on 24 June was eventually tabled on Thursday, 4 July.

Essentially, this will allow NRIs to use their Aadhaar number for opening bank accounts and obtaining mobile phone connections.