The last century has seen a number of Indians migrating to different parts of the world, primarily in search of work. Today, NRIs or Non-Resident Indians can be found in almost every corner of the globe, showcasing their skills and boosting the global economy. While a PAN is mandatory for resident Indian taxpayers, NRIs who wish to participate in stocks or receive rent in the country are expected to have a PAN, integrating them into the folds of our society.
Documents Required to Apply for NRI PAN Card
NRI applicants are required to submit the following documents when applying for a PAN card:
- 2 recent passport-sized photographs
- Copy of passport
- Overseas address proof- copy of overseas bank statement
Procedure for NRIs to Apply for a PAN
The Income Tax Department has simplified and streamlined the entire PAN application process, ensuring that an eligible NRI doesn’t have to spend his/her valuable time running after it. A NRI can follow a few simple steps to apply for a PAN.
- An applicant can log on to the official website of TIN-NSDL or UTIITSL to start the application process
- Since a NRI is an Indian citizen he/she should use Form 49A, providing the necessary information required in the form
- The form should be submitted along with the necessary documents (photographs, proof of address, ID proof and proof of age)
- A fee equivalent to Rs 107 (if the communication address is within India) or Rs 989 (if the communication/delivery address is outside India) should be paid
- Post payment, an acknowledgement number will be generated which can be used to track the status of a particular application
How to Apply for NRI PAN Card Online
- Visit the TIN NDSL website and select the “Online PAN Application” tab on the homepage.
- Select Form 49A, which is the form for Indian citizens from the two options provided.
- A page with instructions will open. Read the instructions carefully.
- At the bottom of the page, select the type of applicant from the drop down menu.
- An online form will open in anew tab. fill in the relevant details, taking care to follow the instructions on filling the form.
- On filling the form, an option to review the information will be provided.
- Upload the documents if the facility applies to you (if you have a DSC signature).
- After reviewing the information, click on “Submit”.
- A payment gateway will open, through which you can pay the processing fee by credit card.
- You can also choose to pay by cheque/DD from an Indian bank.
- An auto generated acknowledgement will appear on the screen. Print the acknowledgement and paste two photographs in the spaces provided.
- Sign the acknowledgement in the appropriate spaces provided for the same and attach the documents if you have not uploaded copies of them.
- If you have not paid through net-banking/credit card, attach the cheque/DD and post the acknowledgement as well as other documents to the address printed on the acknowledgement.
- The PAN card will be posted to the address mentioned on the form within a period of 21 working days from receipt of the acknowledgement.
Is it mandatory for a NRI to have a PAN?
By definition, a NRI is an Indian citizen who has temporarily moved or immigrated to a new country for a specific period of time. An NRI is still an Indian citizen, holding an Indian passport, with the primary reason for immigration being education and employment. According to estimates, there are close to 3 crore NRIs across the world.
Is it mandatory for a NRI to have a PAN?
No, it is not mandatory for all NRIs to have a PAN, but those who have a source of income in India need to have a PAN in order to file their taxes. This income could be in the form of rent, dividends from shares, returns from mutual funds, etc. Other NRIs with no source of income in India need not have a PAN, although it is advisable to apply for a PAN and keep it handy for the future.
Benefits of PAN to NRIs
A PAN is a critical identifier in the country, serving a number of useful purposes, as mentioned below.
- A PAN simplifies the tax paying procedure, with it being mandatory for all taxpayers
- NRIs cannot invest in securities or mutual funds without a PAN
- Purchase of property or vehicles in India requires PAN
- Depositing amounts over a certain limit requires PAN
- Owning a PAN simplifies the KYC procedure in most banks
Time taken for a NRI to Receive the PAN
It could take a NRI about 15-20 days to receive the PAN after he/she NRI has successfully paid the fee and submitted all documents. The PAN will be delivered to the communication address mentioned in the application.
Important Points to Note
If you have provided an overseas address, please check if the NSDL posts PAN cards to the country you reside in. At present, the NSDL send PAN cards by post to 99 countries.
Ensure the acknowledgement reaches the NSDL office within 15 days from the date of filling in the online form.
The fee for applying for an NRI PAN card is Rs. 107 for addresses in India. If the PAN is to be sent to an overseas address, the fee is Rs. 989.
Note: Form 49AA is to be used only by citizens of other countries and NRIs should keep this in mind while applying for a PAN.
Other Types of Pan Card
News About PAN Card for NRIs
How NRIs will be impacted by new rules on linking PAN with Aadhaar
From 1 July 2017, the government has made it mandatory for taxpayers to link their Aadhaar numbers with PAN. However, there is widespread uncertainty regarding the rules applicable to NRIs.
According to the Aadhaar Act, 2016, only an individual who has resided in India for a total duration of 182 days (in the 12 months before the Aadhaar application date) is eligible to receive an Aadhaar card. If an individual who is an NRI now is already in possession of an Aadhaar card, he/she is required to first register on the Income Tax e-filing website. The individual can then link his/her Aadhaar number with PAN through the menu option available on the website.
Also, an individual who is not a resident of India need not quote Aadhaar when filing Income Tax returns. This is as per the provisions under Section 139AA of the Income Tax Act.
14th July 2017
NRIs without PAN Don’t Have to Pay High TDS
Non-resident Indians (NRIs) with a Permanent Account Number (PAN) will no longer have to pay high rates of tax deduction at source (TDS). According to the Budget 2016, section 206AA of the Income Tax Act will be amended to reduce the taxation rate on NRIs without a PAN.
To avail this benefit, the individuals will have to provide the I-T Department with relevant alternative documents.
15th April 2016