Steps To Get A Pan Card As An Nri

Non-resident Indians (NRIs) who have a steady source of income in India and are liable to pay taxes must apply for a Permanent Account Number (PAN) to file their tax returns. A PAN is a 10-digit identification document issued by the Income Tax Department of India to all taxpaying citizens. It is mandatory for every person filing an income tax return or carrying out a financial transaction for which quoting a PAN is compulsory. NRIs need a PAN card if they earn a taxable income in India, trade in shares, invest in mutual funds, or purchase land or property in India for a purpose other than trading. The application process for an NRI PAN card is simple and can be done online or offline.

When is a PAN card necessary for NRIs?

A PAN card 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. It can also serve as a valid identity proof.

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 a depository or through a broker.
• If an NRI wants to invest in Mutual Funds.
• If an NRI desires to purchase some land or any other property in India for a purpose other than trading.

To apply for a PAN card, an NRI needs to furnish a copy of their passport as proof of identity. They also need to submit any one of the following documents as proof of address:

• Copy of the bank account statement in the country of residence
• Copy of the NRE bank account statement (showing a minimum of two transactions in the last six-month period and duly attested by the Indian Embassy/Consular office/high commission or Apostille or by the manager of the bank in which the account is held. The applicant can also be a joint holder).
• Last page of the passport
• Driving license
• Utility bills

How to apply for an NRI PAN card online

The Permanent Account Number (PAN) is a mandatory 10-digit alphanumeric identification code for anyone filing an income tax return or carrying out a financial transaction in India.

Who Needs an NRI PAN Card?

An NRI PAN Card, also known as a foreign PAN Card, is required for non-residents with taxable income in India, those who trade shares through a broker or depository, those who invest in mutual funds, and those who purchase land or property in India for trading.

Application Process:

The application process for an NRI PAN Card is similar to that of a normal PAN Card. The steps are as follows:

• Visit the official website of TIN-Protean eGov Technologies Limited (formerly NSDL) or UTIITSL.
• Fill out the appropriate application form (Form 49A for Indian citizens living abroad, or Form 49AA for foreign citizens of Indian origin, OCI cardholders, or foreign nationals).
• Provide supporting documents, including a copy of your passport as proof of identity, and one of the following as proof of address:

• A copy of your bank account statement in the country of residence
• A copy of your NRE bank account statement, showing a minimum of two transactions in the last six months, duly attested by the Indian Embassy/Consular office/high commission or Apostille, or by the manager of the bank in which the account is held.

Pay the processing fee:

• If the communication address is within India, the fee is Rs. 107, payable via debit card, credit card, DD, or net banking.
• If the communication address is outside India, the fee is Rs. 1,017, payable via debit/credit card or DD.

Track your application status using the acknowledgement number generated after payment.

Additional Information:

• The application process usually takes 15-20 working days, provided the documents and application are correct and complete.
• The PAN Card will be sent to the applicant's residential address.
• NRIs can also apply for a PAN Card through authorised agencies abroad or by submitting the application form and documents at a PAN application centre.
• The PAN Card fees and charges may vary depending on the mode of application and document submission.

Key Differences Between NRI and Normal PAN Cards:

While the basic structure and format of the PAN Card remain the same, there are some key differences:

• Eligibility Criteria: NRI PAN Cards are for Indian citizens living abroad, foreign nationals of Indian origin, OCI cardholders, and foreign companies. Normal PAN Cards are for Indian citizens residing in India.
• Residential Status: NRI PAN Cards are for non-residents, while normal PAN Cards are for residents of India.
• Taxation Rules: NRI PAN Cardholders are subject to different tax regulations, such as the Foreign Account Tax Compliance Act (FATCA) and the Double Taxation Avoidance Agreement (DTAA).
• Types of Transactions: NRI PAN Cards are specifically useful for transactions like investments, property purchases, opening bank accounts, and financial operations in India. Normal PAN Cards are used for a wider range of financial activities by Indian residents.
• Repatriation of Funds: NRI PAN Cards facilitate compliance with Indian tax laws when NRIs transfer funds back to their country of residence.
• Documents Required: In addition to proof of identity and address, NRI applicants may need to provide a copy of their passport, proof of NRI status, and overseas address proof.

In conclusion, while the terms "Normal PAN Card" and "NRI PAN Card" are used to distinguish their functionalities, they refer to the same type of document, with the NRI PAN Card catering to the unique circumstances of non-residents.

How to apply for an NRI PAN card offline

An NRI PAN Card is a vital document for non-resident Indians (NRIs) to have if they want to carry out financial transactions in India and meet their tax obligations. It is a 10-digit unique alphanumeric identification code issued by the Income Tax Department of India.

The application process for an NRI PAN card offline is straightforward and can be completed by following these steps:

• Fill out the application form: Depending on your citizenship status, you will need to fill out either Form 49A (for Indian citizens living abroad) or Form 49AA (for foreign citizens of Indian origin, OCI cardholders, or foreign nationals). Make sure to use black ink and write clearly in block letters.
• Gather the required documents: Along with the application form, you will need to provide a copy of your passport as proof of identity. Additionally, you must submit one of the following as proof of address:

• A copy of your bank account statement in the country of residence
• A copy of your NRE bank account statement showing a minimum of two transactions in the last six months, duly attested by the Indian Embassy, Consular Office, High Commission, Apostille, or the manager of the bank where the account is held.

• Submit the application and documents: Submit the duly filled application form along with the relevant documents and the prescribed application fee at the nearest Protean (formerly NSDL eGov) or UTIITSL PAN application centre.
• Make the payment: The application fee varies depending on whether you want a physical PAN card or an e-PAN card, and the delivery address. For a communication address within India, the processing fee is INR 107 (including taxes), payable via debit card, credit card, DD, or net banking. If the address is outside India, the fee is INR 1,017 (inclusive of taxes), payable only by debit/credit card or DD.
• Track your application: After submitting your application, you can easily track its status using the acknowledgement number generated.

Additional Guidelines for Offline Application:

• Ensure that you provide the correct Assessing Officer (AO) code for NRIs.
• Sign only within the provided box and not across the photograph.
• Provide correct proof of identity and address. Ensure that the details mentioned on the proof of identity (POI) and proof of address (POA) match the details in the application form.
• If the applicant is a minor, their representative must submit the POA and POI.
• Avoid making corrections or overwriting on the form.
• Attach the required photographs without stapling or pinning them.
• Do not write the date or place under your signature.
• Do not state the husband's name in the father's name column.

The entire process typically takes around 15-20 working days, provided that your documents and application are in order. Once your application is successfully processed, your PAN will be generated and sent to your residential address.

Documents required for an NRI PAN card

As an NRI, you will need a PAN card if you have a source of income in India, even if you live abroad. This could be income generated by renting out real estate, receiving dividends from shares, getting returns from mutual funds, or running a business in India. A PAN card is also mandatory if you want to file a return of income in India, buy a house, or invest in India in any way.

• Two recent passport-sized photographs
• A copy of your passport
• A copy of your PIO (Person of Indian Origin) or OCI (Overseas Citizen of India) card
• An overseas address proof
• A copy of your overseas bank statement

If you are a foreign citizen applying for a PAN card with an Indian office address, you will also need to provide the following documents:

• Copy of appointment letter/contract from the Indian company
• Applicant’s certificate of address in India in original issued by an authorised signatory of the applicant’s employer. This certificate should be on the employer’s letterhead, and it should contain the PAN of the employer.
• A copy of the PAN card, which is detailed in the employer’s certificate. It may be noted that the PAN of the employer, as mentioned in the employer’s certificate, will be verified online before processing the application.

The application process for an NRI PAN card is simple and can be done online. Here are the steps:

• Log on to the official website of TIN-NSDL to start the application process.
• Fill out Form 49A, furnishing the required information in the form. If you hold foreign citizenship, you will need to fill out Form 49AA.
• Upload your photograph, address, ID, and age proofs.
• Use the acknowledgement to track your application’s status.

The fees for processing an NRI PAN card application are Rs. 107 if the communication address is within India, and Rs. 994 (Application fees + dispatch charges) if the communication address is outside India.

Benefits of having a PAN card

A Permanent Account Number (PAN) card is a crucial document for Non-Resident Indians (NRIs) to have, as it serves as a gateway to numerous financial opportunities and benefits in India. Here are some detailed explanations of the advantages of having a PAN card for NRIs:

Tax Compliance and Convenience

The Indian tax system can be intricate, and a PAN card is essential for NRIs to navigate it effectively. It is mandatory for filing income tax returns in India, and with a PAN, NRIs can easily keep track of their tax obligations, claim refunds, and avoid withholding taxes at higher rates. The PAN card helps the Income Tax Department link all transactions carried out by an individual, such as TDS/TCS credits, tax payments, income tax returns, etc.

Investment Freedom and Flexibility

A PAN card is a financial passport that authorizes transactions and investments in India. India's growing economy presents a range of investment opportunities in the stock market, mutual funds, and real estate. The card simplifies the process of investing in these sectors, ensuring compliance with regulatory frameworks. For instance, the Bombay Stock Exchange (BSE) has reported increased interest from NRI investors due to the simplified process enabled by PAN.

Real Estate Transactions

According to the Reserve Bank of India (RBI), the real estate sector has seen a surge in NRI activity. A PAN card is essential for property transactions, as it facilitates the creation of legally binding documents such as sale deeds and conveyance documents. This simplifies the process of buying or selling property in India, which is critical given the expected growth of the real estate market to a trillion USD industry by 2030, with NRIs playing a significant role.

Banking Ease

A PAN card is crucial when opening a bank account in India, as it is a prerequisite for transactions exceeding ₹50,000 in many banks. It also helps adhere to regulatory requirements and simplifies banking operations and transactions, including remittances and investments.

Credit and Loan Accessibility

Financial institutions in India often require a PAN for loan approval to assess an individual's creditworthiness. Therefore, a PAN card is indispensable for NRIs looking to establish credit lines or take out loans in India. The resulting credit history can impact future financial endeavours, such as mortgage approvals and credit card applications.

Identity Proof and Security

A PAN card serves as a crucial identity proof for NRIs in India. The unique nature of the card also protects against identity theft, especially with the increasing digitalization of financial services. The Income Tax Department ensures the security and confidentiality of PAN information, providing NRIs with peace of mind in their financial dealings.

In summary, a PAN card is a vital component for NRIs engaging with the Indian financial system. It simplifies taxation, investments, banking, and digital initiatives while ensuring compliance with regulatory requirements. With India's growing emphasis on compliance and digitalization, the importance of PAN for NRIs will only continue to increase.

Frequently asked questions