All the NRIs based out in the U.S. are in for good news! As per the latest notification and 2019 Indian budget, the Central Board of Direct Taxes has allowed the interchangeability of Aadhaar Card in place of PAN Card for filing Indian income tax returns.
Previously, PAN Card used to be a mandatory document for filing Indian income tax returns. The compliance made it considerably cumbersome for NRIs based in the U.S. who did not hold a PAN Card to file their Indian income tax returns. Besides, the process and time to apply for a PAN Card from outside India made it even more taxing for the U.S. NRIs.
The move will make it easier for you to file your Indian ITR by quoting your Aadhaar number wherever the PAN number is required.
Let us take a more in-depth look at how this move your ease your tax filing experience.
Applicable to more than 100 forms and returns
The latest move allowing the interchangeability of Aadhaar Card with PAN card would allow you to substitute your Aadhaar number in place of PAN number in more than 100+ tax-related forms. Some of such forms include Form Nos. 3AC, 3AD, 8, 10CCB, 10CCBA, 10CCBB, 10CCBBA, 10CCBC, etc.
How does the reform work?
The move states very clearly that wherever the words ‘Permanent Account Number’ appears on tax filing forms will be substituted with Aadhaar Card Number or PAN Card Number.
How does it help NRIs based out in the United States?
If you are a U.S. based NRI, then you understand how serious tax filing is in the United States. Obtaining a PAN card overseas was a cumbersome and time-consuming process, making it difficult to file the Indian ITR in the absence of the PAN card. The latest move by the Indian Income Tax Department would help ease compliance requirements for NRI’s.
The reform will make your Indian income tax filing experience much more comfortable and time-efficient.
The Bottom Line
The landmark tax reform comes amid the quest to make Indian tax filing experience more streamlined. The Indian government aims to make its tax compliance processes easier for taxpayers and the tracking of high-value transactions easily traceable by mandatory quoting of either PAN or Aadhaar Card.
This is a piece of welcome news for all the NRIs based out in the U.S. who have been worried about applying for a new PAN card to file their taxes in a time-bound manner. If you wish to understand more about this tax reform or the Indian government’s tax compliance requirements on NRIs, then feel free to contact your MyTaxFiler expert today!