How Can NRIs Apply for PAN Card in India
Overview of PAN:-
Permanent account number is a unique identification code of a person’s financial transactions’ account. This number is used by Income Tax department of India as a reference to keep intact, the data related tothe tax payers’ financial transactions. PAN helps IT department to track the flow of finances from one establishment to the other, thereby help control tax evasion (non-payment of tax).
PAN and NRI:-
PAN is made mandatory by SEBI (Securities and Exchange Board of India) for an NRI who is willing to own a BO (beneficiary ownership) account of full power. People who do not have PAN can hold a BO account which is subject to limitations. NRIs willing to have an account in Indian bank to trade or transact in shares or equities in India, should mandatorily have a PAN card to gain a complete BO account. PAN is made mandatory to Non-resident Indians by income tax department for NRIs who are willing to purchase land or property in India.
Limitations in BO (beneficial ownership) account of an NRI in absence of PAN:-
The ownership of a BO account that is used for mutual funds and stock trading, in absence of PAN of NRIis subjected to limitations that are mentioned below.
- Only credits in the form of corporate actions, demat of physical certificates are allowed into the BO account.
- The account lasts only for 6 months and the NRI is required to produce PAN at bank before this period. If PAN is not produced to the depository participants (DPs), the DP will freeze the BO account.
- Credits from secondary markets, primary markets or any Initial Public Offering are not available to this account.
- Selling of securities underlying a limited extension BO account can be made only through certified brokers in stock exchange and cannot be sold directly.
PAN Card Application procedure:-
An application to PAN can be made online by following the procedure mentioned below.
- Reach form 49A from UTITSL or Income tax India website.
- Based on guide lines fill the application form with necessary photographs and all required information.
- NRIs should mention the address of residence abroad and not any home town address in India.
- Submit the form online and few printouts of acknowledgement are to be taken.
- If any thumb impression is used in place of signature then it is to be attested by a gazetted officer with a signatory and also a seal.
- bank demand draft of Rs.944 in favor of ‘N S D L PAN’ in Mumbai is to be taken.
- One acknowledgement with photocopies of all necessary documents (those are signed by the applicant) is to be sent to NSDL PAN Office, Mumbai along with the DD.
- The applicant can check status of PAN through incometaxindia.gov website.
Documents required for NRI PAN Card Application:-
1. An identity proof in the form of a photocopy of passport
2. A proof of address of current residence (foreign to India)
- Photocopy of NRE bank account statement attested by Indian embassy or consulate or
- Photocopy of passport or
- Photocopy of foreign branch bank account
Permanent Account Number helps financial governing bodies of India in holding data related to financial status of a NRI’s account. The entire process of trade, stock exchange, property purchase of an NRI in his homeland comes under the roof of Indian government.
Contributed By: Aruna Sharma |
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Mrs. Sharma holds a Masters in Financial Management from University of Mumbai. She has graduated from the University of Mumbai. | |
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