Difficulties Faced by Foreign Companies and Senior Citizens Due to PAN Card

PAN Card is the Permanent Account Number, issued by the Indian Government and the Income tax department, to an individual, to make the process of paying taxes easier. With the help of this PAN card, individual can also keep track of their financial records. This card consists of a unique 10-digit alphanumeric code, where each and every digit signifies a special meaning. This PAN card can also be used as a proof of identification, when we are purchasing new property or opening a new account or investing in share market.

Government has also notified all the citizens of India, to link their Aadhaar Card with their PAN card by July, 2017. Due to this, there are many confusions faced by Senior citizens, Foreign National, Non-residential Indians. In this article, we are going to discuss the difficulties faced by foreign nationals and Senior citizens for filing income tax and the reason behind the difficulties.

 Difficulties Faced by Foreign Nationals: 

Foreign Nationals, who have business interest in our country are also subjected to paying income taxes. Indian government has stated that before filing for e-returns, every individual should link their Aadhaar with PAN. If they are not having the Aadhaar card, then they also have to register for Aadhaar card. They can provide Passport as a photo identification proof and for proof of address, they can provide documents like Nationalised Bank account statement, Land Line bill, Rent agreement, etc. 

Even though their only interest is on business, they have to register for Aadhaar card. Some of the issues are: 

  • They may not have a Correct proof of address
  • They may feel difficult, to share biometric details with Indian Government.
  • If they are planning to stay for only few days, then they can feel like this is an unnecessary procedure.

Difficulties faced by Non-residential Indians: 

Indian Nationals, who are working abroad face the following challenges like: 

  • When they are abroad, they may feel difficult to provide biometric details, since they have to fly back and forth
  • Since they are bound to pay taxes at the source of income, they are not required to pay taxes in India, which may lead to invalid PAN card, since they have not linked it with Aadhaar card.

 Difficulties faced by Senior Citizens:

Senior Citizens in India, also face the following Challenges: 

  • They may not be in a position to go to the center for getting Aadhaar Card.
  • This may lead to delay in the registration of Aadhaar card, which in turn affects the linking of PAN card with Aadhaar card.
  • Due to this, the filing of e-returns online becomes impossible and the PAN card becomes invalid, due to the delay in time limit.

Even though, government has not set time limit for linking PAN card with Aadhaar card, if you are willing to file e-returns, we should have linked Aadhaar card with PAN, before July 31, 2017. However, due to the difficulties faced by most of the people, government has extended the time limit of linking Aadhaar with PAN card till December 31, 2017.

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