In April 2017, the Indian government had made it mandatory for all individuals subject to income tax in India to quote their Aadhaar Card number in their income tax returns, with effect from July 1, 2017. This applied to all tax paying Indians as well as foreign nationals who would file their income tax returns in India on or after July 1, 2017. Section 139AA of the Income Tax Act, 1961 is the relevant section that made the quoting of Aadhaar number necessary for filing tax returns. However, there has been a subsequent development and foreign nationals are now exempt from getting Aadhaar numbers for filing their tax returns. On May 11, 2017, the Indian Ministry of Finance issued a notification that exempts certain taxpayers, including foreign nationals, from the requirement to quote their Aaadhar number for filing tax returns or for applying for a Permanent Account Number. The May 11th Notification will come into effect from July 1, 2017.
As per the above new notification, foreign nationals will not be required to obtain an Aadhaar number for the purpose of filing their tax returns in India
(Resource: Notification by the Ministry of Finance dated May 11, 2017 accessed at: http://www.incometaxindia.gov.in/communications/notification/notification37_2017.pdf)
Zeenat Phophalia, Esq., Senior Associate