PAN Card Update, Aadhaar Exemption & Unclaimed Shares/IEPF Recovery for NRIs (2026)

Why your PAN status matters

Your Permanent Account Number (PAN) is your identity in the Indian tax system. Banks, brokers and buyers check it before deducting TDS. Since 2023, PANs not linked with Aadhaar have been made inoperative, unless the holder is exempt. Non-residents are exempt from linking, but only if the Income Tax Department's records show them as non-resident. Many NRIs who obtained PAN while living in India discovered their PAN had become inoperative because it still showed resident status.

How to update your PAN to non-resident

1. Check status on the e-filing portal using Verify Your PAN or the Link Aadhaar Status tool.
2. If your PAN shows inoperative or resident, apply for PAN correction through the NSDL (Protean) or UTIITSL portal, selecting the change in residential status and updating your foreign address.
3. Upload passport, visa or OCI card and overseas address proof.
4. Alternatively, write to your jurisdictional Assessing Officer (international taxation) with proof of non-resident status for the last three years, such as ITRs filed as non-resident.
5. Filing your ITR as a non-resident for the relevant years also helps update records.
6. Once updated, check that PAN shows operative status before major transactions.

Aadhaar: do NRIs need it?

Aadhaar is not mandatory for NRIs. CBDT exempts non-residents from quoting Aadhaar and from linking PAN with Aadhaar. NRIs with an Indian passport can still apply for Aadhaar voluntarily at an Aadhaar Seva Kendra when visiting India, without the 182-day residence requirement that applies to foreign nationals. OCI cardholders are generally not eligible unless they meet residence conditions.

• Aadhaar makes e-verification of ITRs and Form 10F simpler through OTP.
• Some banks and mobile operators prefer Aadhaar for KYC, but must accept passport-based KYC for NRIs.
• If you have Aadhaar and your PAN is not linked, linking is optional for NRIs but harmless; a late fee applies if you link after the deadline.
• Update your Aadhaar mobile number if you no longer have the Indian number, or OTP-based services will fail.

Unclaimed shares, dividends and IEPF

When dividends remain unclaimed for seven consecutive years, the company must transfer them, and the underlying shares, to the Investor Education and Protection Fund (IEPF), a government fund. This is common for physical share certificates held by parents and grandparents, especially when addresses changed or the holder died. Unclaimed deposits, matured debentures and application money also go to IEPF.

The good news: the money and shares are not lost. They can be claimed by the owner or legal heirs through Form IEPF-5.

Step-by-step IEPF claim

1. Search the IEPF website (iepf.gov.in) using the name of the holder, folio number or company.
2. Collect documents: original share certificates if available, PAN, passport and overseas address proof, client master list of your demat account, and an indemnity bond.
3. For a deceased holder: death certificate, succession certificate, probate or legal heir certificate as required, plus no-objection from other heirs.
4. Get physical shares dematerialised or transmitted to your name first, through the company's registrar (RTA), if needed.
5. File Form IEPF-5 online on the MCA portal, with the claim fee.
6. Send signed physical copies of the form and documents to the company's nodal officer within 30 days.
7. The company verifies and sends an e-verification report to IEPF within 30 days.
8. IEPF processes the claim; shares are credited to your demat and money to your bank account. The process typically takes 6–12 months.

Dormant bank accounts and FDs

Bank accounts with no customer-initiated transactions for two years become inoperative. Deposits unclaimed for ten years move to RBI's Depositor Education and Awareness (DEA) Fund. Banks must pay them back with interest when claimed.

• Use RBI's UDGAM portal to search for unclaimed deposits across banks.
• Submit a reactivation request with fresh KYC (passport, overseas address, PAN) to the bank, often possible by email or through an overseas branch.
• If the account holder died, the nominee or legal heir submits a claim with the death certificate and identity documents.
• Convert reactivated resident accounts to NRO.

Spending an afternoon searching IEPF and UDGAM for family assets is one of the highest-value financial tasks many NRIs can do.