- 1 Everything You Need To Know About PAN Card For NRIs
Everything You Need To Know About PAN Card For NRIs
Most people think that a PAN card is mandatory for Indians only. However, the fact is Non-Resident Indians (NRIs) also require PAN if they earn a taxable income in India. They will need PAN to open a bank account, buy car, property, open a DEMAT account, etc. PAN Card is an essential pre-requisite for these processes. Especially in the DEMAT context, a new rule has been imposed by the Securities and Exchange Board of India (SEBI), which clearly states that NRIs not holding a PAN card of their own shall not be involved in the share business by broker or depository. A PAN card for NRI is also essential if he/she would like to invest in Mutual fund plus any purchase of land or any property also requires a government-issued PAN card as an essential document.
The procedure to get PAN for NRIs
- To apply for a PAN card, the foremost step, in any case, would be to visit https://tin.tin.nsdl.com/pan/
- Login/register on the website
- Fill up the form 49AA (for which the link is available on the website). However, people who belong to the qualified category of investors should apply for the PAN Card through depository participants only.
- Once the form is duly filled, a confirmation form will appear on the screen before the final submission. This page will display your completely filled form with all the details. You need to cross check each and every detail, check for spelling-error & factual error, etc. edit it and submit it online.
- After successfully submitting the online PAN application, you’ll receive an acknowledgment receipt online, which you need to keep safe. (It is always better to take a printout of the acknowledgment receipt).
- Paste two passport-size recent photographs on the space provided on the acknowledgment receipt along with your signatures in the box specified in it. One word of advice- whether you are doing a signature or using your thumb impression, it should is done in the specific box assigned to it. Any negligence here would lead to application rejection.
- Once done with this, attach all the necessary documents with the application including a demand draft in favor of NSDL-PAN, 2 colored photographs with a white background to name a few.
Know the payment procedure of PAN application for NRIs
The payment for PAN application differs as per your communicating address. For example, if your communication address is in India, you are required to pay Rs. 110 through debit/credit card, demand draft, cheque, etc. Payment through cash is not accepted in this case. However if your communication address is that of an international country, then the payment of Rs. 1,020 should be made via credit/debit or DD in favor of NSDL-PAN payable at Mumbai. Also, do mention your PAN application no. on the back side of the demand draft. And Rs 1,020 that you pay will include postage charge, application fee, and applicable taxes. Currently, this service is available in 99 specific countries (as mentioned in the NSDL website). So prior to applying for a PAN with an international communication address, always check if the service is available in that respective country or not.
The dispatch of PAN Card
Once you make the payment as per your communication address through Credit/debit, net banking, demand draft, etc. along with the necessary proofs, it will take 15 days for your application to reach NSDL. Upon verification, the PAN will be dispatched to the communication address mentioned in your application.
Here’s a list of some dos and don’ts that you must remember while filling the PAN card application form. It will eliminate all goof-ups and remove all chances of application rejection.
- Always fill your PAN application form in Black ink and make sure to do it in block letters.
- Whether you are doing signatures or option for a thumb impression, always do it in the box provided for this purpose and not over your photograph.
- Always provide the correct AO code.
- While submitting the proof of address and proof of identity, make sure the name mentioned in the address proof and identity proof should match with the name in the application
- If the applicant is minor, his/her spokesperson should submit their proof of address and identity.
- Never overwrite or make corrections in a given application
- One must never write husband’s name in the column specifically meant for the father’s name
- Do not write the date and place underneath your signatures in the PAN application
- Always put a photograph in the application with the help of glue. The usage of any sort of pin, stapler, etc. would reject your application
- Lastly, since keeping more than one PAN card is considered against the law; it is advised not to apply for another if you already have one.
PAN is 10-digit alphanumeric number commonly named as Permanent Account Number. It not only keeps track of all finances of an individual or company but in many places it also serves as nationally accepted identity proof for its holders. A PAN card also helps in bringing down the tax evasion in the country. Not only adults but children should also have their PAN card which is generally revised when they reach 18 years of age. A PAN Card is an essential pre-requisite when you purchase a car, property, open a bank account or a Demat account, deposit funds, invest in mutual funds, post office schemes or in fixed deposits and in all other types of financial transactions. Also, it is useful in tax deductions, claiming refunds from income tax department, in the purchase of foreign currency, property, bonds, insurance, mutual fund investments and a lot more. This is what makes PAN Card a must-have for every citizen of India as well as NRIs.