Overview of PAN for NRI:-
For Non Residents in India, a PAN (Permanent Account Number) is a unique identification code that is needed for them to be able to operate and carry out financial transactions on their accounts. This is a very important number that Income Tax department of India takes very seriously, so you are expected to hold it intact.
This code makes it possible for your bank transactions to be closely monitored and tracked by establishments, and it helps monitor your tax updates.
PAN and NRI:-
The permanent account number is mandated by SEBI (Securities and Exchange Board of India) for a Non-Resident Indigene who intends to own beneficiary ownership of his account. Those residents who do not own a PAN can still operate a bank account but with a limited capacity. Non-Resident Indigenes who intend to operate an account in India for a trade purpose or shares and equities must have a PAN card to gain BO account. The Indian Tax department has mandated non-residents to get hold of their PAN card to be able to purchase properties in India.
Some Limitations for NRI in the absence of PAN:
- Certain blockages will be encountered by owners of BO accounts in India who are interested in stock trading and mutual funds without their PAN cards. Some of these limitations are listed below;
- Available credits in the form of corporate actions and demand for physical certificates will be allowed into their BO accounts
- The account will only last for 6months, and the Non-residents will be required to produce their PAN card before the end of 6 months. If they are unable to produce the PAN card, the account will be frozen.
- Credit facilities from that cover all the secondary markets, primary markets, and other initial public offerings will not be made available to account holders who have no PAN card.
New PAN card apply procedure:
Non-residents in India can apply for the PAN card through an online process mentioned below;
- Go to the Income-tax India website and reach the 49A form
- Fill the application form with the necessary information and photographs.
- Non-residents in India should mention their country’s address rather than their resident address in India.
- Applicant should submit the form online and take printouts with them.
- Where the resident applies a thumbprint, an officer should sign and stamp an official seal on such a document.
- A bank demand draft should be submitted as requested by the NSDL PAN in Mumbai
- An acknowledgment copy with all other necessary photocopies signed by the applicants should be sent to the NSDL PAN office.
- The applicant can now follow up on his application through the official government website on incometaxindia.gov website.
These are the list of documents needed for applying for PAN card online.
Documents required for NRI PAN Card Application:-
1. Evidence of identity in the form of a photocopy or passport
2. Proof of address in the resident’s home country
3. A Copy of the NRE statement attested to either by the consulate or embassy
4. A copy of the resident’s bank account details
Permanent Account Number helps financial governing bodies of India in holding data related to the financial status of an NRI’s account including the individual’s information relating trade process, stocks, and purchase of properties in the resident’s home and country and in India.