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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 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 with respect to your current Residential Status.
This article discusses the necessity of a PAN Card for an NRI, PAN Card application procedure for an NRI, 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
- a)Which PAN Card Application Type an NRI needs to use?
b)Procedure to Apply PAN Card for NRI – Physical Form
c)Payment Procedure for NRI PAN Card
d)Documents Required to Apply PAN Card for NRI
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.
- 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. It is not mandatory for an NRI 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 through submitting the online 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. 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, 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 in 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 for 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 by many ways like – Debit Card, Credit Card, D.D or Net-Banking except 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 of the NRI PAN Card application fee, tax, and postal charge.
(v) At present this service is available only for 99 specific countries (-given on 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.
| Proof of Identity | Proof of Address | Proof of D.O.B. |
|---|---|---|
| Aadhaar Card | Aadhaar Card | Birth certificate |
| Bank certificate | Bank account statement | Order for pension payment |
| Any photo identity card issued by a government body | A domicile certificate that is issued by the government. | Marriage certificate |
| Passport | Passport | Passport |
| Driving license | Driving license | Driving license |
4) Dispatch of NRI PAN Card
Usually, the dispatch of NRI Panc 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 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 the application only using BLACK INK and in BLOCK LETTERS.
2. Do the signature in the given box and not over the photograph.
3. Make sure that you are providing 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 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 by means of pin or staple.
3. While making a signature, do not write date or place underneath the sign.
4. Do not mention Husband's name in the Father's Name column.
5. Last but not least; Please do not apply for the PAN Card if you already have one.
Did you find this information useful for you with reference to PAN Card for NRIs?
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 it in the comment box below.
I have a pan card from 15 years back when I was a resident Indian. I am now a Canadian citizen and an OCI cardholder.
I have now come back to India, with long term settlement plans. Incidentally, every detail on my PAN card remains the same, even my address because I am living with my parents at the same address where I used to live before leaving India.
I want to now open bank account and intend to do business with opening a proprietorship firm in my name.
My questions are:
1) Do I need to make any changes on my PAN although everything remains same such as Father’s name, D.O.B, and address as before other than my citizenship status?
2) What kind of bank account can I open with a bank? As I have come back for long term settlement can I open a resident bank account with a foreign passport?
3) What is needed to open a proprietorship company in India as a foreign citizen with OCI card?
4) Can I apply the Aadhar card for myself as I have lived more than 183 days in the last 365 days in India and fulfill the basic condition for applying Aadhar?
1) No. You do not need to make any changes on your PAN.
2) When OCI comes to India with an intention to stay for an indefinite period and stays more than 182 days, he/she loses the privileges available to NRIs/OCIs. Thus, an OCI can open all types of accounts allowed to a Resident Indian.
3) & 4) We are not the appropriate persons to give the correct answers for these questions. Please apologise.
1)sir in the application first name and last name two columns are there but my name is single word with initial of my father name first letter, so how can fill the form with above two names
2) my aadhar id name and passport name are not same. there is typo error in passport as a NRE in my PAN card which name should I write. as I could not correct the error in my passport
Dear Kumaran,
Thanks for seeking more details on this.
1)You single word name is the first name. Your father’s name first letter need to be filled in the last name column.
2)Passport is needed as a proof of address only. If you choose to give a different address proof with the correct name, you can apply for the KYC. Alternately, you can change the name in the pancard by applying for name correction.