Is a Pan Card mandatory for an NRI bank account?
SBNRI Team
answered on 23/03/2020
No! A Pan Card is not a mandatory document for opening an NRI account. The basic use of a PAN Card can be associated with taxes. A PAN Card is a mandatory document to file taxes and carry on investments from these NRI Accounts. In the absence of the Pan Card, NRIs can sign Form 60 [Form 60 is a declaration to be filed by an individual or a person (not being a company or firm) who does not have a Permanent Account Number (PAN) and who in involved in any transaction] to open an NRI Account.
NRI Accounts comprise of NRE,NRO and FCNR Accounts. A basic overview to understand the importance of PAN Card with respect to these three accounts can be understood as:
NRE: For funds earned outside India where both Principal and Interest earned are tax-free. Therefore, NRIs can opt for Form 60, which is a substitute for PAN for opening an NRE Account.
NRO: For funds earned in India which are mostly liable to taxes. Income such as rent or pension where taxes are not deducted at source are deposited in an NRO Account. Therefore, a PAN Card is mandatory for NRO Accounts.
FCNR: For foreign currency term deposits from outside India. Again, the principal and interest are tax-free, so usage of a PAN Card is not necessary and can be substituted with Form 60.
The basic difference between a PAN Card and Form 60 is that you can only sign and use the Form 60 to open a bank account but in order to file taxes and carry out investments from that account, a Pan Card is mandatory.
Related Questions
SBNRI Team
answered on 30/03/2020
Nomination has some essential benefits for any savings or Fixed Deposit account. The benefits benefits of Nominees in an NRI bank account are: Ease of transfer of account ownership to nominee after the death of current owner Settlement of other claims after death of the account owner can be done by nominee No Dues certificates […]
SBNRI Team
answered on 05/04/2023
An NRO account is a rupee-denominated bank account opened by Non-Resident Indians to save and manage their earnings in India, such as rental income, dividends, pension, etc. Many Indian banks allow NRIs to open an NRO account, including SBI, HDFC Bank, ICICI Bank, Axis Bank, etc. Permissible credits in an NRO account include remittance from […]
SBNRI Team
answered on 23/03/2020
Yes, NRIs can apply for Pan Card online through either of the processes: Instant PAN Allocation in 10 minutes through Aadhar Card: Go to Income Tax Department’s e-filing portal Click on “Instant Pan through Aadhar” section under “Quick Links” Enter and Validate Aadhar Details and otp received on the registered mobile number Download […]
SBNRI Team
answered on 26/04/2023
Yes. Indian Residents can open a joint account with an NRI on “either or survivor” basis according to the Reserve Bank of India (RBI) guidelines. The term “either or survivor” refers to the condition where both of the account holders can operate the account independently in the absence of the other account holder. […]
