“Synopsis”
For Non-Resident Indians (NRIs), understanding PAN (Permanent Account Number) and Aadhaar requirements is crucial in 2025. These two identity proofs play a key role in income tax filings, claiming TDS refunds, property dealings, and staying compliant with Indian regulations. However, NRIs often get confused about whether Aadhaar is mandatory and how to handle PAN-Aadhaar linking. This blog clears all doubts, outlines the latest legal provisions, and helps you navigate NRI compliance requirements smoothly.
Do NRIs Need a PAN Card in India?
Yes, NRIs need PAN if they:
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Earn income in India such as rent, dividends, capital gains, or interest
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Intend to file an Income Tax Return (ITR) in India
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Wish to claim a TDS refund
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Buy or sell property or invest in mutual funds
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Trade in Indian stock markets through NRE or NRO accounts
Without PAN, NRIs face higher TDS (typically 20%) and cannot file returns or claim refunds.
How Can NRIs Apply for PAN?
You can apply for PAN using Form 49AA on the following platforms:
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NSDL (Protean eGov Technologies)
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UTIITSL
Documents Required:
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Passport copy (as identity and proof of NRI status)
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Foreign address proof (or Indian if applicable)
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Passport-sized photographs
You can choose to receive the card at your foreign or Indian address.
Is Aadhaar Mandatory for NRIs in 2025?
Under Section 139AA of the Income Tax Act, Aadhaar is mandatory for Indian residents filing returns. However, Aadhaar is not mandatory for NRIs unless they have spent 182 days or more in India in the past 12 months.
Aadhaar is not required if:
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You are an NRI who hasn’t stayed in India for 182 days in the last 12 months
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You don’t use services in India that demand Aadhaar authentication (e.g., subsidies, SIMs, KYC)
Aadhaar is optional if:
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You’re an NRI who has stayed in India for over 182 days
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You hold an Indian passport and wish to use Aadhaar for banking or KYC purposes
PAN-Aadhaar Linking: Should NRIs Link?
As of July 2023, all Indian residents had to link PAN with Aadhaar, failing which PANs were marked inoperative. However, NRIs are exempt if their residential status is correctly updated on the income tax portal.
If you’re an NRI and PAN was made inoperative:
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Log in to the Income Tax e-filing portal
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Update your profile’s residency status to “Non-Resident”
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Raise a grievance under e-Nivaran
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Provide documents like passport, visa, or immigration stamps to prove NRI status
Even if exempt, some NRIs voluntarily link Aadhaar to PAN to avoid verification issues during ITR filing or refunds.
What If You Don’t Link or Have Aadhaar?
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Your PAN may become inoperative if your NRI status isn’t updated
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TDS may be deducted at 20% or higher
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Refunds won’t be processed
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ITRs cannot be submitted electronically
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You may face compliance issues with banks and mutual fund houses
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A penalty under Section 272B may apply
TDS Refund for NRIs – Why PAN Is Critical
If you’re an NRI earning:
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Rental income from Indian property
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Capital gains from asset sales
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Bank or NRO account interest
Then PAN is essential to file ITRs and claim back excess TDS deducted at source. Aadhaar is not mandatory for this unless you’re also a resident or want to use Aadhaar for verification.
Real Estate Transactions and PAN for NRIs
PAN is mandatory when an NRI:
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Sells property in India
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Wants to apply for a Lower Deduction Certificate (LDC)
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Wishes to transfer sale proceeds abroad (after tax)
Without PAN, the buyer may deduct full 20% TDS or even higher, and you may not be able to repatriate funds.
NRI with Aadhaar – How to Apply (Optional)
You may apply at a UIDAI center in India. Required documents include:
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Indian Passport
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NRI declaration
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Proof of residency abroad
You will receive a regular Aadhaar card marked with “NRI” status.
How to Check PAN-Aadhaar Linking Status
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Visit the Income Tax Portal
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Click on “Link Aadhaar Status”
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Enter your PAN and Aadhaar
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Confirm if your PAN is active or inoperative
If you’re an NRI, make sure your profile reflects it so the linking requirement does not apply.
Conclusion
In 2025, PAN continues to be mandatory for NRIs with financial dealings or taxable income in India. Aadhaar, on the other hand, remains optional unless you meet the 182-day residency rule. If you’re an NRI, keeping your PAN active, updating your status on the income tax portal, and knowing your Aadhaar obligations will help you stay compliant and avoid any disruption in your financial affairs.
