• Tax Filing, Link Aadhar, Building Home in Inherited Land

I am residing in a foreign country , and have OCI for me, my spouse and my kids. My family holds a Foreign Passport, and Indian Passport has been surrendered/cancelled.

1) Do we need to continue tax filing in India, i hold an ICICI NRE and an NRO Account and gain a few interest < Rs 5000 in a year

2) I hold an old Aadhar card and PAN, do i still need to link them as per latest rules ,is there any benefit for me in doing so.

3) I am holding an Indian Driving Licence expiring in 2029, can i drive vehicle with that licence while i am India - is it valid. Note: I dont have an international licence too.

4) After 2029(Indian Driver's Licence expires). can i get a new Driver's Licence , Note: I am not an Indian Citizen, and dont hold an Indian Passport.

5) Does my Indian Documents - Drivers Licence, PAN Card, Aadhar continue to be valid even though i became a foreign citizen, my Indian Passport has been surrendered, as i cant hold dual citizenship.

6) I am planning to build a home in my inherited land for coming back and staying in Indian after retirement. Does it have any civil/legal issues during any phase of building a home.
Asked 9 months ago in Taxation

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6 Answers

PAN, Aadhaar, and Driving License will continue to be valid as these documents are not tied to your citizenship, but rather issued during legal residence in India.

 

2) you are at liberty to build home in India after getting plan’s sanctioned 

 

3) you can renew your driving licence on expiry 

 

4) you can drive vehicle with Indian driving licence 

 

5) you should link your aadhar with PAN Card 

 

6) as far as tax filing consult a local CA 

Ajay Sethi
Advocate, Mumbai
94884 Answers
7569 Consultations

5.0 on 5.0

1. Since, you are an OCI , then you can continue the said accounts in Indian bank and tax filing for the interest amount which crossed the limitation 

- However, a foreign national who already surrendered the citizenship of India cannot continue the account as an NRE

2. As per law, a valid Indian Passport is mandatory as a proof of Identity for an NRI  for updation of PAN card and Aadhar Card

- Further, if you will not link both of them , then PAN Card will be inactive 

3. YES

4. Yes , A foreigner can apply for an international driving licence in India if he is going to reside in India for less than a year , and if his stay in India is more than a year, then the foreigner needs to apply for an Indian driving licence.

5. The Constitution of India does not allow the holding of Indian citizenship with that of a foreign country simultaneously.

6. Yes, you can construct the home in your inherited land legally 

Mohammed Shahzad
Advocate, Delhi
13320 Answers
199 Consultations

5.0 on 5.0

Dear Client,

Tax Filing in India:

As an OCI (Overseas Citizen of India) holder with financial interests in India (such as NRE and NRO accounts), you may still be required to file income tax returns in India if your income in India exceeds the threshold for filing, even if it's just interest income.

Linking Aadhar and PAN:

Linking Aadhar and PAN is mandatory for Indian residents.

Driving in India with an Indian License:

Your Indian driver's license is valid for driving in India. Be prepared to show your OCI card or other relevant documentation when driving in India.

Renewing an Indian Driver's License as an OCI:

Renewing an Indian driver's license is possible. Obtain the process with the transport authorities regarding the renewal process for OCI holders with an Indian driver's license.

Validity of Indian Documents After Surrendering Indian Passport:

 

Indian documents like PAN and Aadhar might remain valid even after surrendering your Indian passport.

Building a Home in Inherited Land:

Building a home on inherited land can involve legal and regulatory processes, including obtaining necessary permits and clearances. Additionally, consider any property and land-related taxes that may apply.

Anik Miu
Advocate, Bangalore
8986 Answers
110 Consultations

4.7 on 5.0

1. Only income earned or accrued in India is subject to taxation for non-residents. The Indian Government does not tax money earned outside of the nation. However, some income categories, such as interest, royalties, fees for technical services, and capital gains, are taxed in India.

2. The IT department had earlier made it clear that NRIs and OCI card holders did not need to link their Aadhar card with their PANs.

3. If your Indian driving licence is not lapsed then you can very well use it while in India if not then you may have to get it renewed.

4. According to a notification issued by the Ministry of Road Transport and Highways (MoRTH) on Jan 7 2021, Indians living overseas can renew their driving licence via Indian embassies or missions, from the respective countries they are residing at present.

5  Yes

6. No. 

T Kalaiselvan
Advocate, Vellore
85085 Answers
2213 Consultations

5.0 on 5.0

Yes if any income is earned in india then returns needs to be filed for taxable income. No only appropriate permission will be required no civil rights will be affected 

Prashant Nayak
Advocate, Mumbai
32037 Answers
183 Consultations

4.1 on 5.0

1) Tax Filing in India: If you are an Overseas Citizen of India (OCI) holder and a foreign resident, your tax liability in India primarily depends on your source of income in India. Interest earned in NRE and NRO accounts is taxable in India. However, if the total income you earn in India is below the taxable threshold (currently Rs 2.5 lakhs per year), you may not have to file taxes.

2) Linking Aadhaar and PAN: As of my knowledge, linking Aadhaar with PAN was mandatory for filing income tax returns in India. 

3) Validity of Indian Driving License: Indian driving licenses are generally valid for driving in India. 

4) Obtaining a New Driver's License after 2029: Since you are not an Indian citizen and don't hold an Indian passport, it may be challenging to obtain a new Indian driver's license after the expiration of your existing license.

5) Validity of Indian Documents: Indian documents such as a driver's license, PAN card, and Aadhaar card may remain valid even if you become a foreign citizen, as long as they have not expired. However, you may not be able to use them for official purposes in your foreign country of residence, as they are issued by the Indian government.

6) Building a Home in India: Building a home in India as an OCI holder should not pose significant legal issues. However, it's crucial to ensure that you comply with all local building codes, regulations, and land ownership laws. You may need to work with local authorities and obtain the necessary permits and approvals for construction. Consulting with a local lawyer or real estate expert in the specific region where you plan to build is advisable to navigate any local legal requirements effectively.

Akram Khan
Advocate, Gwalior
20 Answers

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