Indian origin folks - New aadhaar card ?

@Alienn

I was mistaken in listing the reason the bank requires aadhaar for NRIs before July 1st. Apparently, if you don't link your PAN card to your aadhaar card, Income Tax authorities will disable your PAN Card. This means higher TDS and TCS rates on any income earned/received in India for those who are filing.

I have income in India. The existing tax slab of 20.8% on consulting fees for NRI's already burns.

See the bank's email below:

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Dear Customer,

Thank you for banking with us.

In reference to the guidelines issued by Income Tax Authorities under section 139AA, every person who has been allotted a Permanent Account Number (PAN) and is eligible to obtain Aadhaar, must update their Aadhaar with the Income Tax Department (PAN-Aadhaar linkage).

Further, as per 114AAA of the Income-tax Rules, 1962, PAN will be considered as in-operative by Income Tax Authorities if your Aadhaar is not updated.

In accordance with the directives issued by Ministry of Finance, consequences for an inoperative PAN are effective July 01, 2023.

Primary implications of an inoperative PAN are:

· Application of higher rates of TDS under section 206AA of the Act*

· Application of higher rates of TCS under section 206CC of the Act*

* TDS/TCS wherever applicable

On scrutiny of the Income Tax database, we found that your PAN was not linked to Aadhaar and hence, the aforesaid rule is applicable to you.

Please note, TDS once deducted cannot be refunded by the Bank under any circumstances.

Form 15G/H:

With effect from 1st July 2023, if PAN is not linked with Aadhaar, Form 15G/H will be rejected. PAN should be linked with Aadhaar before submitting Form 15G/H.

In case Form 15G/H was submitted from 01-04-2023 to 30-06-2023, please link your PAN on the income tax website & inform the Bank as you do not have to re-submit Form 15G/H.