In order to strengthen identity checks, ensure consistency in documentation, reduce duplication, and improve data accuracy, the Income Tax Department of India is introducing updates to its rules from April 1, 2026.

One major step is the removal of Aadhaar-only application process for NRIs, wishing to acquire a new Permanent Account Number (PAN) card, or update their existing one.

The IT department had for years been adopting the procedure of linking PAN with Aadhaar to improve tax compliance. With IT authorities flagging identity mismatches and other serious concerns, the rules have been tightened to make the applicant for PAN card submit other relevant documents as required, in addition to Aadhaar.

According to the new rule, which comes into effect from April 1, 2026, NRIs in the UAE who have thus far relied only on Aadhaar-linked processes will have to be prepared for a longer verification process.

The submission of multiple documents would enable IT authorities to trust the reliability of PAN as a financial identifier, easing the process of tracking high-value transactions and tax filings. – editor@nrifocus.com