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Permanent Account Number (PAN) is a unique 10 digit alpha-numeric number allotted to a Taxpayer by the Income-Tax Department of India. The purpose of PAN is to bring a unique global identification to keep track of all financial transactions and to prevent tax evasion by taxpayers in India.
PAN stores all the income tax-related records of an Individual/entity and thus no two tax-paying entities can have the same PAN or any tax-paying entity cannot have two PAN.
A PAN is mandatory when filing an Income-Tax return, TDS, or any transaction that attracts tax.
PAN works completely the same way for both NRI and Resident Indian except for one factor – the type of Application Form alone changes concerning your current Residential Status.
This article discusses the necessity of a PAN Card for an NRI, the PAN Card application procedure for an NRI, documents required for NRI PAN, Do’s & Don’ts and tracking your PAN Card application status.
Table of Contents:
1)Why an NRI needs a PAN Card?
2)PAN Card for NRIs and Tax Filing Myths
3)How to apply PAN Card for NRI
- Which PAN Card Application Type an NRI needs to use?
- Procedure to Apply PAN Card for NRI – Physical Form
- Payment Procedure for NRI PAN Card
- Documents Required to Apply PAN Card for NRI
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4)Dispatch of NRI PAN Card
5)Do’s and Don’ts
6)How to track PAN Card application of an NRI
1) Why an NRI needs a PAN Card?
The very basic question that comes into an NRI’s mind is, “why do I need a PAN card while I live and earn outside of India?” As an NRI, you need a PAN card because all your taxable financial transactions in India will be recorded by the Income Tax Department.
NRIs can avail of the following 5 benefits by applying for a PAN:
- PAN Card is necessary when an NRI wants to open an NRO or NRE account
- An NRI needs a PAN Card if that NRI has got a taxable income in India.
- According to the new- rule of SEBI, any NRI not having PAN Card cannot do the share trading by depository or broker.
- PAN Card is also mandatory for an NRI if the NRI would like to invest in Mutual Funds.
- If an NRI wants to purchase some land or other property in India then also it is mandatory to have PAN Card issued by the Government of India.
2) PAN Card for NRIs and Tax Filing Myths
There is a myth that, if an NRI applies and gets a PAN Card, it is mandatory, year after year for NRI to file Income Tax Returns in India. This is not true. An NRI doesn’t need to file Income tax returns in India just because he has a PAN Card.
By now if you have made up your mind and want to apply for Pan Card then here is the procedure for you:
3) How to apply PAN Card for NRI – Online/Offline
An NRI can apply for a PAN Card by submitting theonline application at the NSDL website where you will be required to choose the Application Type and your basic contact details.
a) Which PAN Card Application, an NRI needs to use?
As discussed earlier, there are two application formats available for NRIs.Obtaining a PAN Card is a simple process if you have an Aadhar Card. It would just take 10 minutes to complete the process.
Applicants without an Aadhar Card can fill out either of the following forms:
They are
1) 49A – 49A form needs to be used by an NRI having Indian Citizenship for getting the PAN Card.
2) 49AA – 49AA form needs to be used by an NRI having foreign citizenship. OCI holders, and PIOs need to use this form for getting PAN Card.
Once the Application Form Type and contact details are filled and submitted, you will be given a temporary token number for Application Status Enquiry purpose and further changes in the data provided.
The next Important Step is to choose “How do you want to submit your PAN application documents?” There are three ways to submit your PAN application documents
- Submit digitally through e-KYC & e-Sign (PAPERLESS)
- Submit scanned images through e-Sign
- Forward application documents physically
The first method will give you the advantage of completing the KYC through Aadhar and the second method will require you to scan and upload your documents via e-sign, and the third submission method will ask you to physically submit documents.
If you choose the “Submit digitally through e-KYC & e-Sign (PAPERLESS)” method, then it is very simple, as you only have to provide the Aadhar details, OTP and payment. The other two options follow the same procedure except for the document sending part.
b) Procedure to Apply PAN Card for NRI – Physical Form(without Aadhar)
(i) After the online filling and submission of the PAN Card application form, a confirmation screen will appear. You can see the complete data filled by you over there. If you still, want to make any changes to your Pan Card application then edit it or just submit it.
(ii) After submission, as you can see, you will get an online acknowledgment receipt. Take at least one print out of it. (It is always better to take one printout extra).
(iii) Now paste two recent passport-size photographs in the space provided in acknowledgment. (Its specifications should meet the requirement laid down by IT dept., India).
(iv) Whether you are doing Signature or using your left thumb, it is to be done in the specific box only. Failing to this your application may be rejected.
(v) Then please attach necessary document along with your application e.g. Proof if Identity, Proof of Address, 2 color photographs with white background, Demand draft, etc.
(vi) Super-scribe the envelope with “APPLICATION FOR PAN – N – 15 DIGIT ACKNOWLEDGEMENT NUMBER” and send it to the following address,
Income Tax PAN Services Unit,
NSDL e-Governance Infrastructure Limited,
5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8,
Model Colony, Near Deep Bungalow Chowk, Pune – 411016.
c) Payment Procedure for NRI PAN Card
You can make payment to apply for PAN Card in many ways like – Debit Card, Credit Card, D.D, or Net-Banking except for cash deposit.
(i) If you have any communication address in India then you can provide that and also for that you need to pay
(ii) Processing fee: 110 INR if the dispatch address is an Indian address and 1020 INR if the dispatch address is an overseas address.
(iii) But if you have given communication address is of the Foreign country then you can make payment only by debit /credit card or D.D. Demand Draft should be drawn in the favor of NSDL-PAN payable at Mumbai .(Please do not forget to mention your application no. on the reverse of Demand Draft).
(iv) And the amount you pay (Rs 110 or Rs 1020) comprises the NRI PAN Card application fee, tax, and postal charge.
(v) At present this service is available only for 99 specific countries (-given on the NSDL site)
d) Documents Required to Apply PAN Card for NRI
You will be required to provide documents for proof of identity, proof of address and proof of Date of Birth.
<table “width=”100%””>Proof of IdentityProof of AddressProof of D.O.B.Aadhaar CardAadhaar CardBirth certificateBank certificateBank account statementOrder for pension paymentAny photo identity card issued by a government bodyA domicile certificate that is issued by the government.Marriage certificatePassportPassportPassportDriving licenseDriving licenseDriving license
4) Dispatch of NRI PAN Card
Usually, the dispatch of the NRI Pan Card takes 15-30 working days from the day your application form reaches the NSDL office.
(i)Your acknowledgment, Demand Draft, if any, and proofs should reach NSDL within 15 days from the date of the online application. (so it is better to choose Register post)
(ii)Applications received with demand draft or cheque as a mode of payment shall be processed only on receipt of relevant proofs and realization of payment.
5) Given are some Do’s and Don’ts while filling your online application for NRI PAN Card
Do’s
1. Fill out the application only using BLACK INK and in BLOCK LETTERS.
2. Do the signature in the given box and not over the photograph.
3. Be careful while providing information in the form to avoid application rejection.
4. Make sure that you are providing the correct AO code.
Please follow these rules while submitting Proof of Identity (POI) and Proof of Address (POA).
a) Make sure that the name given on POI/Passport and POA should match the name given in the application.
b) If the applicant is a minor then his / her representative should also submit POA and POI/Passport.
Don’ts
1. It is not advisable to overwrite or to make corrections in the given application.
2. Do not attach photographs to the application using a pin or staple.
3. While making a signature, do not write the date or place underneath the sign.
4. Do not mention the Husband’s name in the Father’s Name column.
5. Last but not least; There is no difference between NRI PAN Card and the Normal PAN Card, do not apply for a new one or make any changes to your existing PAN Card.
Did you find this information useful for you with reference to PAN Card for NRIs?
Want a personal finance checklist to be taken care of before departing from India, read:(7 Critical Financial Steps To Take On Becoming an NRI)
6) How to track PAN Card application of an NRI
- Visit the link – https://tin.tin.nsdl.com/pantan/StatusTrack.html
- Choose your Application Type
- Enter your ACKNOWLEDGEMENT NUMBER and enter the Captcha code to find the status of your PAN Card application.
If you have any additional questions, please put them in the comment box below.
Frequently Asked Questions
1. What is the difference between NRI PAN Card and a normal PAN Card?
PAN works completely the same way for both NRI and Resident Indian except for one factor – the type of Application Form alone changes concerning your current Residential Status.
2. Is it necessary to be physically present in India to apply for an NRI PAN card?
In order to apply for an NRI PAN card, one is not required to be physically present in India.
An NRI can apply for a PAN Card by submitting the (online application) at the NSDL website where you will be required to choose the Application Type and your basic contact details.
If you choose the “Submit digitally through e-KYC & e-Sign (PAPERLESS)” method, then it is very simple, as you only have to provide the Aadhar details, OTP, and payment.
3. Is it possible to open an NRI account without a PAN card?
Yes, it is possible to open a non-residential account without a PAN card. The only requirement is that you have a valid photo ID issued by the government of your country of residence.
If an NRI has taxable income in India, a PAN Card is required to file an income tax return, TDS, or other transaction that attracts tax.
4. How many days does it take to dispatch NRI PAN Card?
Usually, the dispatch of the NRI PAN Card takes 15-30 working days from the day your application form reaches the NSDL office.
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