PAN Card for NRIs: What You Need to Know

For Non-Resident Indians (NRIs), engaging in India’s financial and economic activities often requires a Permanent Account Number (PAN).

For Non-Resident Indians (NRIs), engaging in India’s financial and economic activities often requires a Permanent Account Number (PAN). This unique identifier is crucial for various financial transactions, including investing in stocks, mutual funds, and property. The permanent account number also plays a vital role in tax filing and other income-related activities. Although not mandatory for all activities, having a PAN simplifies numerous processes, making it an essential tool for NRIs participating in India’s economy. This article explores the importance of PAN cards for NRIs, the application process, and the required documents.

Importance of PAN for NRIs

A permanent account number is indispensable for NRIs who wish to engage in financial transactions in India. Firstly, it is a prerequisite for opening Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts. These accounts facilitate the management of funds in India, including income earned abroad and within the country. Additionally, a PAN is required for NRIs to invest in the Indian stock market or mutual funds. It is a unique identifier that helps track financial transactions, ensuring compliance with tax regulations. Moreover, NRIs need a PAN when buying or selling property valued over ₹10 lakh. This requirement helps the government monitor high-value transactions and curb money laundering activities.

Required Documents for NRI PAN Card Application

Applying for a PAN card as an NRI involves submitting specific documents. The primary documents required include two recent passport-size photographs and a copy of the applicant’s passport. Additionally, NRIs must provide a copy of their Person of Indian Origin (PIO) or Overseas Citizen of India (OCI) card. Proof of overseas address is also necessary, which can be established through a bank statement or a residential permit. If the applicant has an NRE account, a bank statement showing at least two transactions within the last six months, verified by the bank, can serve as additional proof. These documents ensure the applicant’s identity and address are correctly verified, preventing fraudulent activities.

Steps to Apply for a PAN Card

The process for NRIs to obtain a PAN card is straightforward and can be done online. Applicants can start the process on the official websites of UTI Infrastructure Technology And Services Limited (UTIITSL) or Protean e-Governance Infrastructure Limited (previously known as NSDL). Here are the steps involved:

1. Select the Application Form: Choose the “New PAN for Indian Citizens (Form 49A)” option.
2. Fill in the Details: Complete the form with personal details like name, date of birth, and contact information. Select ‘Non-Resident Indian’ as the status.
3. Upload Documents: Scan and upload the necessary documents, ensuring they are clear and legible.
4. Make Payment: The application fee can be paid online via Credit/Debit Cards, NetBanking, or UPI.
5. Submit the Application: Note the acknowledgement number for tracking purposes after submitting.
6. Send Physical Documents: Print the acknowledgement, sign it, and attach two passport-sized photographs. Within 15 days, send this along with the original documents or attested copies to the chosen agency. The envelope should be labelled ‘APPLICATION FOR PAN—Acknowledgement Number.’

Once the application is processed, the PAN card will be delivered to the specified address.

Payment Procedure and Guidelines

The cost of acquiring a PAN card depends on whether the card is delivered within India or abroad. The fee for a physical PAN card sent to an overseas address is ₹994, including the application and dispatch charges. If the card is dispatched within India, the cost is ₹107, including GST. 

Payments can be made online using Internet banking, Credit/Debit Cards, or UPI. It’s crucial to ensure that all personal details are accurately filled out in the application form to avoid discrepancies. The name entered should match the one on the passport to prevent identity verification issues.

Conclusion

A Permanent Account Number (PAN) is a valuable asset for NRIs engaging in India’s financial landscape. It facilitates various economic activities, such as investing in securities, managing bank accounts, and complying with tax obligations. Obtaining a PAN card is straightforward, requiring essential documents and a simple online application. 

With a PAN, NRIs can easily participate in India’s economic activities, ensuring smooth transactions and compliance with regulations. Furthermore, linking Aadhaar with their PAN or bank accounts through the Aadhar bank link process is beneficial for those who wish to avail themselves of government schemes and services.