9 Benefits of PAN Card for NRI, Application Process, Documents Reqd.
PAN (Permanent Account Number) is issued by Income Tax Department of India under the management of Central Board of Direct Taxes (CBDT). PAN is basically 10 alphanumeric characters, which are unique for every individual and hence serves as an identity proof as well. The government’s purpose of issuing a PAN card to all Indian citizens and NRIs is to keep a track record of all the monetary transactions of higher value. Moreover, a PAN card for NRIs and Indian citizens is an essential document that is to be furnished for all financial transactions above a specified limit set by the government.
Why do NRIs need a PAN card?
NRIs – be it the Indian citizen or the international citizen should hold a PAN card if he/she makes any of the following financial transactions in India:-
- Open a bank account or a Demat account in India.
- Apply for a debit card or credit card in India.
- Invest in mutual funds.
- Sell or purchase property or assets in India.
- Apply for a loan in Indian banks.
- Apply for a passport or visa.
- Apply for a foreign remittance.
- Deposit or withdraw more than Rs. 50,000 in a bank.
- As per the SEBI, PAN card is also required to trade in Indian stock market.
How NRIs apply for a PAN card in India?
The procedure to apply for PAN card in India is quite simple for all categories of individuals. However, NRIs need to furnish some specific documents when applying for a PAN card in India. NRIs, who are Indian citizens, can apply for a PAN card by filling from 49A whereas the NRIs with foreign citizenship such as OCI holders or who are not of Indian origin will have to fill form 49AA to get a PAN card. Both these forms can be filled and submitted on either of the two websites – UTIITSL and NSDL. On submitting the form, an acknowledgment receipt consisting of 15 digit number will be generated which a person needs to send to the designated address along with the required documents.
The fee to apply for the PAN card is Rs. 110 if the communication address is in India and if the address is of the foreign country, the payment of Rs. 1020 has to be made by the applicant. The fee can be paid online via debit/credit or net banking. Alternatively, a demand draft favoring UTIITSL or NSDL can also be dispatched along with the form and allied documents.
Once the process is done, your PAN card would reach you in 15-20 days at max. However, if the payment is made via demand draft, the PAN card will only be dispatched once the payment is received by the entity and hence it may take time.
Key points to note:
- NRIs can provide their foreign address as residential address and office address if they do not have any Indian address.
- Second, as PAN card shipping facility outside India is limited to some countries only, it is advised to first check whether the facility is available in your country or not before applying.
- The necessary documents that one needs to attach with the form are:-
- One identity proof
- One address proof
- Two passport size colored photographs
Since money related transactions have become frequent these days, making PAN card mandatory for every individual including NRIs is a government’s initiative to keep track of all such transactions. A PAN card is used for payment of direct taxes, to file income tax return, a cash payment of Rs. 25,000 or more towards traveling to another country, deposit money exceeding Rs. 50,000/- and a lot more. So by now if you have not applied for your PAN (permanent account number), we advise you to do it right away to avail unlimited benefits offered by the government of India.