PAN (Permanent Account Number) is a unique 10 digit alphanumeric identification code that is allotted by the Income Tax Department under the supervision of the Central Board of Direct Taxes to every taxpayer. It also serves as a valid identity proof.
PAN is mandatory for every person who is filing the income tax return or who wish to carry out a financial transaction for which quoting of PAN is compulsory.
Why an NRI Needs a Pan Card?
An NRI is mandatorily required to possess a PAN card in the following scenarios:
- If an NRI earns a taxable income in India.
- If an NRI wishes to trade in shares, through depository or through broker
- If he\she wants to invest in Mutual Funds.
- If he\she desires to purchase some land or any other property in India for purpose other than trading.
To apply for PAN Card, visit https://tin.tin.nsdl.com/pan/ site and follow these steps:
- NRIs, who are Indian citizens, are required to fill Form 49A while NRIs with citizenship of another country are required to fill up Form 49AA (https://www.tin-nsdl.com/downloads/pan/download/Form49AA_NSDL%20e-Gov_01.06.16.pdf). Although, a qualified financial investor should do it through depository participant only.
- People who hold Indian citizenship and settled abroad should use the Form 49A available for Indian citizens. Whereas NRIs who hold foreign citizenship, such as OCI holders or people of Indian origin who possess foreign citizenship or foreigners who are not of Indian origin are required to fill Form 49AA.
- A confirmation screen would appear after filling and submitting the form online. All the information filled can be checked and verified here. In case of any changes, one can edit it right there or else submit it. After submission, you would receive an online acknowledgement receipt containing a 15 digit number. Take at least 1 print of it.
- In the space provided in the acknowledgement, paste 2 recent passport size photographs.
- In the provided box, sign using black ink or put your left thumb impressions. This should be done in the provided box only; else your application may get rejected.
- Attach all the necessary documents along with your application. These documents include identification proof like Aadhaar card, driving license, voter ID card, address proof, 2 coloured photographs with black or white background, demand draft, etc.
- Any of the following would serve as a proof of address: copy of passport, copy of bank account statement in the resident country, copy of NRE bank account statement showing a minimum of 2 transactions in past six months. The document should be duly attested.
- The status of your application can be easily tracked using your acknowledgement number.
- Processing fees of INR 110 (93 + GST)
- Payment can also be made by mode of debit card, credit card, DD or net banking (other than cash)
- An amount of INR 1,020 is to be paid which comprises of application fees, tax and postage.
- Presently, this service is available for only 105 countries whose list is available on the official NSDL website https://tin.tin.nsdl.com/pan/Country.html.
Sending the Form, Supporting Documents and Demand Draft to NSDL
All these documents shall be mailed to: NSDL at this address-
Income Tax PAN Services Unit,
National Securities Depository Limited,
3rd floor, Sapphire Chambers,
Near Baner Telephone Exchange, Baner, Pune – 411045
- You shall also note down ‘APPLICATION FOR PAN- Acknowledgement Number’ (e.g. ‘APPLICATION FOR PAN- 981000100100123’) on the mailing envelope.
- The acknowledgement, DD (if any) and proofs shall reach NSDL within 15 days from the date of making an online application.
- Applications for which payment has been received by mode of DD or cheque shall be processed only after receiving the relevant proofs and realization of payment.
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- Application should be filled only in black ink. Also make sure to do so in clear Block letters.
- Signatures shall be done in the provided box only and not across the photograph.
- Ensure that you provide the correct AO code.
- The following rules shall be followed while depositing Proof of Identity (POI) and Proof of Address (POA).
- It should be made sure that the name mentioned on POI and POA match with the name provided in the application.
- If the person applying for PAN is a minor, then POA and POI are also required to be deposited by his/her representative.
- It is advisable not to overwrite or to make corrections in the given application.
- Photograph should not be stapled or pinned to the application. Instead it should be attached by way of sticking it to the application.
- While signing the application, do not write date or place underneath your signatures.
- Do not state husband’s name in the father’s name column.
- Last but the most important one: Do not apply for the PAN card if you already possess one.