For NRIs (Non-Resident Indians), managing finances across two countries comes with its own set of complexities. While you may have international bank accounts and tax obligations abroad, your financial presence in India still matters. One key document that connects all your financial dealings in India is the PAN card, or Permanent Account Number. Let’s look at the importance of PAN card for NRIs!
But here’s the surprising part: many NRIs are unaware of how important this little 10-digit alphanumeric number is. If you’re investing, earning, or owning property in India, not having a PAN card can cause serious delays, extra taxes, or even legal trouble. Let’s explore why a PAN card is essential for NRIs in 2025.
What is a PAN Card?
A PAN card is a government-issued identification card from the Income Tax Department of India. It carries a unique 10-digit alphanumeric code that is used to track all your financial activities in India. Think of it as the Indian version of the Social Security Number (SSN) in the US or the National Insurance Number in the UK.
Every time you earn income, make investments, file taxes, or carry out high-value financial transactions in India, your PAN number is used to identify you. It helps prevent tax evasion and keeps your finances legally transparent.
Also Read: PAN 2.0: Key Features, Benefits, QR Code and How to Apply
Why Do NRIs Need a PAN Card?
Even if you live outside India, your financial connections back home require you to follow Indian tax laws and financial regulations. A PAN card becomes your primary proof of identity for most financial actions in India. Here’s how it helps:
1. Investing in Indian Financial Markets
If you want to invest in Indian mutual funds, stocks, bonds, or other market instruments, having a PAN card is non-negotiable.
To complete your KYC (Know Your Customer) process—a mandatory identity verification step—PAN is required. Without it, you cannot open a Demat account (used to hold shares electronically) or invest through platforms like Zerodha or Groww.
In simple terms: No PAN, no entry into the Indian stock market.
2. Filing Taxes and Claiming Refunds
If you earn any taxable income in India, such as from rent, dividends, capital gains, or business, you are required to file an Income Tax Return (ITR). For that, PAN is a must.
Moreover, if TDS (Tax Deducted at Source) is applied to your income (which it usually is), you can only claim a refund through proper tax filing using your PAN.
Without a PAN:
- You can’t file ITR
- You may lose out on thousands in refunds
- You will be charged higher TDS rates, often 20-30%
3. Buying or Selling Property in India
Property transactions in India involve a lot of legal checks. If you’re buying or selling real estate:
- PAN is required for sale deed registration
- TDS on property sales (usually 20% for NRIs) requires a valid PAN
If you don’t have one, the deal can get delayed or even cancelled.
Tap for a free PAN card consultation!
4. Opening Bank Accounts
To open NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts in Indian banks, PAN is often required.
- NRE accounts allow you to park your foreign earnings in India.
- NRO accounts are used for income earned in India (rent, pension, etc.).
Some banks may allow account opening without PAN, but transactions over a certain limit will be blocked or taxed heavily without it.
5. Aadhaar-PAN Linking and Citizenship Status
If you ever had an Aadhaar card before moving abroad, your PAN may be marked “inoperative” if it is not linked with Aadhaar. But here’s the twist—NRIs are exempt from linking PAN with Aadhaar.
However, to claim this exemption, your citizenship status must be updated with the Income Tax Department. That means updating your PAN with “NRI” or “foreign citizen” status. If not done, your PAN can get blocked, affecting all financial activities.
What Happens If You Don’t Have a PAN or It’s Inoperative?
A non-existent or inactive PAN can cause a range of problems:
- You can’t file taxes or claim refunds
- You get taxed at higher rates
- You can’t invest in mutual funds or open Demat accounts
- Banks may reject your high-value transactions
- You may face penalties or delays in property sales
Also read: New Aadhaar Card and PAN Card Rules for NRIs
How SBNRI Can Help NRIs With PAN Card Services
We at SBNRI specialize in helping NRIs manage their financial needs in India. Our team works with experienced Chartered Accountants (CAs) who understand cross-border tax and compliance issues.
Here’s how we can assist you with PAN-related services:
- New PAN Card Application: We help you apply digitally and get E-PAN + physical card delivered to your overseas address.
- PAN Citizenship Update: If your PAN is blocked due to Aadhaar-linking issues or wrong status, we help you fix it.
- Reprint or Correction: Lost your PAN or need to update name/address? We’ll take care of it.
- Aadhaar Exemption Filing: For NRIs wrongly marked as residents, we file exemption requests with the IT Department.
- Personal CA Support: Talk to experts who understand your needs and help maximize tax savings.
Take Action Before It’s Too Late
Your PAN card is more than just an ID—it’s the key to unlocking financial freedom in India. Whether you’re an investor, property owner, or simply earning in India, don’t let paperwork hold you back.
Book a free PAN consultation with an NRI expert!
SBNRI: Simplifying Finance for NRIs Everywhere.
FAQs
1. Is it mandatory for NRIs to have a PAN card?
Yes, if you’re an NRI earning taxable income in India, investing in mutual funds, trading in the stock market, or buying/selling property, a PAN card is mandatory. It acts as your financial identity in India and is essential for TDS tracking and tax filing.
2. Can NRIs apply for a PAN card online?
Yes, NRIs can apply for a PAN card digitally through platforms like SBNRI. The process is paperless, hassle-free, and guided by experts, especially for those living abroad and unsure about document requirements.
3. What documents do NRIs need to apply for a PAN card?
It depends on your citizenship:
- Indian Passport Holders (NRI): Passport copy, overseas address proof (utility bill, bank statement), and a recent photo.
- Foreign Passport Holders (OCI/PIO): Passport copy, OCI/PIO card, and proof of overseas address.
4. What is an E-PAN and how is it different from a physical PAN card?
An E-PAN is a digitally signed PDF version of the PAN card, which is valid for all legal and financial purposes. A physical PAN card is the printed version that gets couriered to your overseas address.
5. Can I get a refund if my PAN application is rejected?
No. If the rejection is due to incorrect or incomplete documents provided by you, the fee is non-refundable. That’s why expert guidance during application (like with SBNRI) is crucial.
6. How long does it take for NRIs to get their PAN card?
The E-PAN is usually issued in 2–3 weeks, and the physical PAN card takes an additional 2 weeks for international delivery via post, handled by the PAN issuing authority.
7. Can SBNRI help with PAN card correction or reissue?
Yes! SBNRI offers end-to-end services including:
- New PAN application
- Correction of details (name, DOB, address)
- Reissue of lost/damaged PAN cards
- PAN–Aadhaar linking
- Citizenship status update on PAN
