What are the uses of a PAN Card for NRIs?

Today, Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) are spread across the globe. PAN (Permanent Account Number) Card is mandatory not only for resident Indians but also for NRIs who wish to invest in India or have any income in India, such as rental income. Let’s understand the importance of a PAN card for NRIs to conduct financial transactions where quoting PAN is mandatory.

NRI PAN Card

A PAN card for NRIs is the same as for residents. The only difference is an NRI applicant needs to submit the Form No. 49A and required documents including overseas address proof to apply for a PAN card. Listed below are some transactions where a PAN card for NRIs is compulsory:

• Sale and purchase of motor vehicles except two wheelers. 
• NRE, NRO or FCNR account opening. 
• NRI Demat account opening with a depository, participant, custodian of securities, etc. 
• Purchase of mutual fund units costing more than Rs. 50,000. 
• Payment exceeding Rs. 50,000 made to a company or an institution for the purchase of debentures or bonds. 
• Cash deposit exceeding Rs. 50,000 during one day with a bank.  
• A time deposit of amount more than Rs. 50,000 or aggregating to more than Rs. 5 lakh during a financial year at:
  • A banking company or a co-operative bank
  • Post office
  • A Nidhi referred to in Section 406 of the Companies Act, 2013 or
  • An NBFC registered U/s 45-IA of the Reserve Bank of India Act, 1934 to accept deposits from the public 

• Payment of more than Rs. 50,000 in a financial to an insurance company as a life insurance premium 
• A contract of sale or purchase of securities, excluding shares, for an amount exceeding Rs. 1 lakh per transaction 
• Sale or purchase of unlisted shares for an amount more than Rs. 1 lakh per transaction
• Sale or purchase of an immovable property that costs more than Rs. 10 lakh or recognized by stamp valuation authority referred to in Section 50C of the Act at a cost exceeding Rs. 10 lakh

Benefits of PAN for NRIs

Since it serves as a crucial Identity proof in India, there are several benefits of a PAN card for NRIs:

• PAN card is mandatory if an NRI has taxable income in India.
• NRIs need to have a PAN card to make an investment in securities or mutual funds.
• If they wish to purchase property or vehicles in India. 
• A PAN card is also mandatory to deposit amounts over a certain limit.
• PAN serves a useful purpose to simplify the KYC procedure in most banks.

Also Read: Tax for NRI on Indian Income and Investments in 2020-22

Procedure for NRI PAN Card Application 

How to Apply for an NRI PAN Card Online?

Here are the steps for the NRI PAN Card application online:

• Visit the the website of UTIITSL or Protean (formerly NSDL eGov) to apply for an NRI PAN Card Online.
• NRIs holding Indian citizenship should fill the Form 49A available for Indian citizens.
• The applicant will see a confirmation message on the screen after filling and submitting the form online.
• All the information provided can be seen and verified straight away. One can edit the information, if required, else submit the application. 
• After submission, the applicant will receive a 15-digit number acknowledgment receipt online. Take a print of the receipt. 
• Attach 2 recent passport size photographs in the space provided in the acknowledgment.     
• Put your signature using black ink or put your left thumb impression in the provided box. Make sure you sign in the provided box only, else your application may get rejected. 
• Attach all the required documents with your application. You need to attach documents including ID proof like Aadhaar card, driving license, voter’s ID card, address proof, 2 colored photographs with black or white background, demand draft, etc. 
• For address proof, documents include a copy of passport, bank account statement in the resident country, copy of NRE bank account statement that shows a minimum of 2 transactions in the past six months. 
• The document should be duly attested.
• You can track the status of your application using your acknowledgment number.

How to Apply for an NRI PAN Card Offline?

Here are the steps for the NRI PAN Card application offline:

• To apply for a PAN Card, head to your nearest IT PAN service centre, NSDL or UTITSL.
• Obtain the application form Form 49A and complete it using black ink and block letters, ensuring that all details provided are filled accurately.
• Attach photographs and photocopies of all required documents before submitting the form and pay the fees.
• Upon submission, you will receive an acknowledgement slip containing an acknowledgement number, which can be used to track the application status online via the NSDL or UTITSL website.
• Your PAN Card will be issued within 15-20 days of application.

NRI PAN Card Fees

NRI PAN Card fee varies based on your communication address provided in the application. 

Indian Address for Communication

• The NRI PAN card fees for individuals providing Indian address for communication is Rs. 110 inclusive of GST.
• The payment can be done through credit/debit cards, demand draft, or net banking.

Foreign Address for Communication

• The NRI PAN card fees for individuals providing Foreign address for communication is Rs. 1020.
• They can initiate the payment through a credit/debit card or by drawing a demand draft. 
• In case of demand drafts, one needs to draw it in favour of NSDL-PAN payable at Mumbai.

Procedure of Payment

• Payment of a PAN card fee can be made through debit card, credit card, net banking, or by demand draft. 
• If the communication address is of a foreign country, then the payment can be made only by credit/debit card or DD.
• Demand draft should be drawn in the favor of ‘NSDL-PAN’ payable at Mumbai. 

Note: Currently foreign credit cards are not accepted  

NSDL Address

All these documents and DD shall be mailed to NSDL at the following address:

Contact details of PAN Card Office

For any query related to a PAN card, you can contact the PAN office at the following address:

Telephone no.: 020-27218080
FAX: 020-27218081
Email: [email protected]

Things NRIs Should Keep in Mind While Filling an Online Application

Do’s

• Make sure you fill the application in clear block letters using black ink. 
• Put your signatures in the provided box only and not across the photograph. 
• Provide the correct AO code.
• Make sure you provide correct address proof and identity proof. 
• Your NRI PAN card application form should have the same name as on address proof and identity proof. 
• In case of a minor applicant, his/her representative is required to submit the address proof and identity proof. 

Don’ts

• Be careful while providing your details; don’t overwrite or make corrections in the application form. 
• Don’t fix the photograph using a stapler or pin. Instead, use a proper adhesive to stick your photograph to the application form. 
• Don’t write the date and place it underneath your signature while signing the application form. 
• Don’t mention your husband’s name in the ‘Name of the Father’ column. 
• Don’t apply for a PAN card if you already have one. 

NRI PAN Card Processing Time

NRIs can expect the delivery of their PAN card within 15 to 20 days after submission of all documents and fees payment. The PAN card will be delivered to the communication address mentioned in the application form. Presently NSDL sends PAN cards by post to 105 countries. If you have provided an overseas address, you must check if the service is available in the country you are residing. 

PAN card for OCI and NRI is important if they have a source of income in India, especially for NRIs, to file income tax. Make sure the NSDL office receives the acknowledgment within 15 days from the date of filling in the online form. 

Is There a Difference Between NRI PAN Card and Normal PAN Card?

There is no difference between an NRI Pan card and normal PAN card. An NRI PAN card is the same as a PAN card issued to individuals living in India, except for one thing – the type of Application Form differs with respect to your current Residential Status.

PAN Card for Foreign Citizens

As a foreign national employed in India, obtaining a PAN Card is compulsory. In order to apply for one, you will need to complete and submit form 49AA, along with a copy of your foreign passport, an appointment letter from the Indian company, and evidence of payment of the PAN Card application fee.

PAN Card for NRIs: Get Expert Assistance

Due to the lack of resources or right information, NRIs may sometimes find it difficult to apply for a new PAN card or correct the information in the existing PAN. We at SBNRI, understand this struggle and are here to help you out with everything. You can get in touch with our expert directly on WhatsApp using the button below to resolve your doubts and queries. Also visit our blog and YouTube Channel for more details.

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