The PAN card refers to the Permanent Account Number. The PAN card is used as an “identifier” by the Income Tax department. It is issued by the Income Tax department to link all the transaction of a person with the department. The PAN card comprises of 10 alpha numeric number which is used by the Income Tax department to widen the tax base by facilitating the tax payers with easy information on loans, tax payment, investments etc.
The first three characters comprise of alphabetic series ranging from AAA to ZZZ. The fourth character represents the card holder’s status. For instance “P” stands for individual” stands for a firm,” C” stands for a company,”T” stands for Trust etc.
|Some Important Links Related To The PAN Card|
|PAN Card Information||Click Here|
|Apply For The PAN Card||Click Here|
|Track PAN Card Application Status||Click Here|
|Form 49A||Click Here|
|Re Apply For Lost PAN Card||Click Here|
|PAN Card Correction/Update||Click Here|
|Check PAN Card Number||Click Here|
|Apply For Duplicate PAN Card||Click Here|
|PAN Card Link With Aadhaar Card||Click Here|
Circumstances When a Pan Card Is Mandatory For NRI
The Securities and Exchange Board of India has made several rules that require even NRIs to hold Indian PAN cards. An NRI is required to apply for a PAN card in India in the following circumstances:
- If an NRI gets taxable income from India
- If an NRI wants to trade in India
- Any sort of financial transaction in India will also require a PAN card
- PAN is also mandatory for investing in mutual fund
- PAN is must if an NRI wants to purchase land or other property in India.
Benefits of A Pan Card for An NRI
The PAN card is issued by the Income tax department to every Indian citizen to keep a track of all their monetary transaction. An Indian PAN card can also come in handy for the Non-Residential Indians or Persons of Indian origin who are living abroad. Some of the benefits of an Indian PAN card are
- Any sort of investment into Indian market will require the NRI to have a PAN card issued by the Indian government. Earlier NRIs had the option to investments through a broker or open a Limited Purpose Beneficiary Account. However, from 2007 onwards the Income Tax department has made it compulsory for NRIs to hold PAN cards in case of any investment to made in the Indian market.
- Further, a PAN card is also necessary if an NRI wants to open a Demat account. A Demat account is necessary to hold shares and securities in dematerialized form, i.e, the account holder have the option not to physically hold the certificates in such accounts.
- For purpose of tax payment PAN card is necessary. If an NRI has a taxable income in India exceeding 2.5 lakhs then he or she is required to file tax returns. Further, if an NRI wants to claim the refund or have incurred losses than also he or she is eligible to pay tax in India.
- While the PAN card is not compulsory for an NRI to enter into a property transaction but it is important to have a PAN card for the sale of Indian property.
Steps to Apply for A Pan Card for an NRI
A Non-residential Indian or an organization or firm having no office of its own in India must follow the following steps to apply for a PAN card:
- Visit official website of NDSL: www.nsdl.co.in
- Click on new PAN
- Fill the online application for a new PAN i.e; from 49AA.
- After filling all the details in details in the form click on “submit”.
- On successful submission of the form, an acknowledgment slip will be generated comprising of a 15-digit number.
- The print out of the acknowledgment slip must be taken out and should be sent to the PAN center in India along with the necessary documents.
- The documents must be sent within 15 days from the date of online application.
- The PAN card will be delivered within 2 months to registered foreign address.
The list of documents that are required to submit along with the PAN card application are:
- Two passports sized photographs of the applicant
- Identity proof like a copy of passport, a copy of national identity duly attested by the Indian embassy/consulate/high commission.
- Address proof like copy of the passport, a copy of the bank account statement where the person is residing
- A copy of bank account statement of NRE Bank
- Copy of the Person of Origin card issued by the Indian government
- A Demand draft of the application fee.
How to Fill Form 49AA
The NRIs who are Indian citizens are required to fill form 49A and NRI who are not of Indian citizen are required to fill form 49AA.The forms are available on the official websites of NDSL and UTIITSL. The following details in the form must be filled:
- the correct international taxation directorate should be used
- In case a person does not know the AO code then the default AO code should be mentioned. The default AO code is of Delhi Regional Computer Center(DL-C-35-1)
- The applicant can provide the address of his or her foreign residence or office if they do not have an Indian address.
- An address of communication must be provided (this can be either a foreign address or an Indian Address.
- If a foreign citizen provides an Indian address than he is he is required to prove the proof of address like a copy of the contract or letter from the Indian company, original certificate of the Indian address duly signed by the employer or by an authorised signatory of the employer mentioning the PAN number at the top of the letter head, Copy of the PAN card mentioned in the employer’s certificates.
- An applicant can provide an Indian address by proving a certificate of approval by a competent authority or if the competent authority issues documents about the same to the applicant.
- The entities which are registered outside the country as provide the address of their “Indian Tax consultant” as “care of”. This address will act as their address of communication.
- If the applicant provides a foreign address than courier charges will be charged. The Applicant is required to pay a total amount of Rupees 1020 at the time of applying for the PAN card.
- If the applicant provides his or her residential address in India then no fee is charged. In such cases, the card will be dispatched to the residential address even if the applicant has provided a foreign address as the address of communication.
- The town, city, district, PIN code, the ZIP code should be mentioned correctly.
The applicant should provide a valid e-mail id for communication
It is not mandatory for the applicant to provide the details of an RA. However, they have then the proof address and identity about the RA must be provided.
In case of foreign entities, they can give the address of their Indian tax consultant in form of care of address. In such cases, the applicant should provide their own name in the RA section.
The Indian Tax Consultant number should be mentioned in the first line of the address provided in the RA column.
Further, a certificate duly attested by the Indian High commission or consulate must be attached along with the application. The certificate should mention that the Indian tax consultant is authorized to receive notifications from the Income Tax department on behalf of the applicant.
Photographs and signature
The applicant is also required to provide two recent passports sized photographs. Further, the application must also be signed by the applicant or by the representative assessee.
Finally, after completing the application form, it must be duly attached with the required documents for proof of identity and proof of address.