Does a NRI need to have a Permanent Account Number (PAN) in India?
Every person entering a financial transaction in India is mandatorily required to have a Permanent Account Number. It is the sole identification number for the purpose of tax payments and investments.
An NRI PAN Card is required for almost all transactions of which some are:
- Paying taxes on Indian income under the Income Tax Act, 1961
- Investing in securities per the Securities and Exchange Board of India (SEBI)*
- Investing in Mutual Fund schemes for all existing and prospective investors
- Opening an account through the enhanced Know Your Customer (‘KYC’) procedure**
- Purchase and sale of property in India
- Purchase and payments of vehicles
- Making time deposits in a bank worth over Rs.50, 000/-
An applicant will fill Form 49A online and submit the form.
To apply for a new PAN, Form 49A will need to be used. Form 49A can be filled online by visiting https://tin.tin.nsdl.com/pan2/servlet/NewPanApp. Fill in the details and submit the form online. After the form is submitted online successfully, an acknowledgement is displayed. This shows a unique 15 digit acknowledgement number. This acknowledgement must be saved and printed for further process.
The acknowledgement form must be sent to the Income Tax department. Before sending this, you will need to attach a few documents along with the acknowledgment form. This includes a proof of address and a proof of identity. Your name which is mentioned in these documents should be in the same format as that in the PAN application form. Take care of this at the time of filling in Form 49A.
You must also affix two recent colour photographs on the acknowledgment form in the applicable space. Signatures have to be made where indicated. The photograph you affix should be clear and recent, as this is the same photograph which will be used on your PAN card.
Application for PAN necessitates payment of Rs.96 if the communication address is within India. In this case, you can make the payment by one of the following methods – cheque, Demand Draft, internet banking, credit card or debit card. If the communication address is outside the country, then the amount to be paid is Rs. 962, and this is only in the form of a demand draft. In the case of payment by internet banking, by credit card or by debit card, the payment has to be made at the time of filling in the form, after which a payment acknowledgement will be given. Take a print of this and attach with the acknowledgement form
The acknowledgement form must thus be accompanied by photographs, proof of address, proof of identification and the payment/payment proof as the case may be. This must be sent to NSDL in Pune within 15 days of the online application date. The envelope must be subscribed with the words ‘APPLICATION FOR PAN – Acknowledgement Number’. The applications are processed at NSDL after receipt of payment – meaning if the payment has been made by means of a demand draft or cheque, you must wait for realization of the payment.
