What is PAN or a PAN Card ??
PAN (Permanent Account Number) refers to a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department (ITD) in India.
Is it mandatory for NRIs to have a PAN Card ?
- Yes, mandatory as per the Indian Income Tax Department.
- SEBI has made PAN compulsory for all investors wanting to invest in India.
- Also compulsory if one wants to carry any kind of financial or investment related transaction in India over INR 49,999.
Is it necessary for NRIs to file tax return in India if they have a PAN ?
- No, as far as we know its not compulsory.
- In case you generate income from India, you need to file tax return.
- It is always advisable to file tax return even though you are not making any money in India as it enhances your credibility and makes it easy for one to get various types of loans.
Who can apply?
- All existing taxpayers or persons who are required to file a Return of Income even on behalf of others.
- Any person who intends to enter into economic or financial transactions where quoting PAN is mandatory.
How do I apply?
You can apply for PAN by filling up the Application Forms 49A or 49AA (for other than Indian citizen). You can apply through any TIN-Facility Center, ALANKIT GROUP being one of them.
Do I need to apply for a new PAN when I move from one city to another?
Permanent Account Number (PAN) as the name suggests, is permanent and does not change. Change of the address should be intimated to ITD so that the PAN database of ITD can be updated. Same can be done by filling up the form for Request for New PAN Card or/and Changes or Correction of PAN data and submitting the form at any TIN FC.
Can I obtain or use more than one PAN?
Obtaining more than one PAN is punishable under law and may attract a penalty up to Rs.10,000. If you have more than one PAN, surrender immediately the unused PAN by logging into ITD website at www.incometaxindia.gov.in.
Is a photograph compulsory for making an application for PAN?
- For 'Individual' applicants 2 recent color photographs of size 3.5 cm x 2.5 cm.
- Should not be stapled or clipped to the form.
Is father’s name compulsory for female applicants (including married / divorced / widow ) ?
Female applicants, irrespective of their marital status, should write only father’s name in the PAN application form.
What are the benefits that can be availed by using PAN Card?
In general having a PAN or the permanent account number does not bring any benefits; rather it is more of a compulsion laid by the Income Tax Department of India. It is compulsory requirement for NRIs - Non Resident Indians living abroad to have a pan card if they intend to carry any kind of financial or investment related transactions in India. Thus, one may consider it as a Tax ID which is a must for NRIs if they intend to Invest in Shares, open a Demat account, purchase real estate, open a NRI bank account, getting loans, applying a visa or passport, enjoy income from rent, get foreign remittance, etc.