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Permanent Account Number (PAN) For NRIs And PIOs

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In this article we are going to talk about the importance of Permanent Account Number (PAN) Card for a Non Resident Indian (NRI) or a Person of Indian Origin (PIO). As we all know it is very important to have a PAN card for every tax paying Indian as it helps them in number of ways.

Issued by the Indian Income Tax (IT) department to keep track of every tax paying individual also serves as a proof of identification like Social Security Card in United States (US). But is it important for a NRI or a PIO to have a PAN card? Lets find answers to some of the common questions of NRIs and PIOs regarding PAN card.

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Can A NRI/PIO Invest In Indian Stock Market Without Having A PAN Card?

No, if you are a NRI/ PIO and want to invest in Indian capital market then you need to have a PAN card issued by the Indian Income tax (IT) department. Earlier it was not mandatory but from 1st January 2007, it has become mandatory for all NRIs/PIOs and Foreign investors to have a PAN card for making investment in the Indian stock market.

*Limited Purpose Beneficiary Owner Account facility is not available to NRIs / PIOs any more

Can A NRI/PIO Open A Demat (Trading) Account In India Without Having A PAN Card?

No, it is mandatory to have a PAN card issued by Indian income tax (IT) department for opening a demat account with any depository in India.

Can A NRI/PIO Claim Tax Refund Without Having A PAN Card?

No, one cannot file income tax return without having a PAN card as it is mandatory for every tax payee. Thus, if you are a NRI/PIO and want to file your income tax return in India to claim your tax deducted at source (TDS) or otherwise, you would compulsorily need a PAN card number.

Can A NRI/PIO Transact In Properties Without Having A PAN Card?

Yes, a NRI/PIO can enter into any property transaction without having PAN card as it is not mandatory for them to have a PAN card for entering into property transaction.

*PAN is mandatory to repatriate the sale proceeds of the property out of India.

What Is The Procedure To Apply For A PAN Card By A NRI/PIO?

To obtain a PAN card you can apply online : follow steps

  • Visit https://tin.tin.nsdl.com/pan/index.html OR http://www.utitsl.co.in/utitsl/site/index.html
  • Click On New PAN
  • Click On Online Application For New PAN (Form 49A)
  • Read The guidelines carefully before proceeding
  • Select Category from the drop down list and press submit
  • Fill all the mandatory fields of the form and submit your application
  • Take a printout of your duly filled application and send it to the respective PAN center in India.
  • Your PAN card will be delivered at your foreign address in 2 months

* Please follow all the guidelines given on the website while filling and dispatching your application.

What All Documents Are Required For A Pan Card Application?

You need to submit few documents along with the pan card application

  • Two passport size photograph
  • Proof of identity (POI)
    • Proof OF Identity for a NRI :
      • Copy Of Passport
    • Proof of Identity for a PIO : Any one of the following
      • Copy of passport
      • Copy of any other national ID attested by Indian Embassy / Consulate / High /Commission
      • Copy of Person of Indian Origin (PIO) card issued by Government of India
  • Proof of address (POA) :
    • For A NRI : Any one of the following
      • Copy of passport
      • Copy of bank account statement in country of residence
      • Copy of NRE bank account statement
    • For a PIO : Any one of the following
        • Copy of passport
        • Copy of any other national ID attested by Indian Embassy / Consulate / High Commission
        • Copy of bank account statement in country of residence duly attested by Indian Embassy / High Commission / Consulate in the country where applicant is located
        • Copy of Person of Indian Origin (PIO) card issued by Government of India
        • NRE bank account statement
  • Demand Draft (DD) for the application fee and courier charges

Note :

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  • If you are not an Indian Citizen, You need to get your Proof of Identity and Proof of address documents attested by the Indian Consulate.
  • If you are an Indian Citizen living abroad then you need to get your documents showing your current address, notarized.
What Is The Cost Involved In Processing A PAN Card For A NRI/PIO?

The fee for processing PAN application is 944.00[ (Application fee 85.00 + Dispatch Charges 771.00) + 10.3% service tax]. The payment can be made only by way of Demand Draft payable at Mumbai.

* Any of your friend or relative in India can also apply PAN card for you.

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