What Is the Difference Between NRI PAN Card & Normal PAN Card?

Talking about an NRI PAN card and a normal card is talking about the same thing with different aspects. The normal PAN card is for resident Indians who live within the country. For them, the normal PAN card is like a passport for managing finances that they can use for everything, whether it is for buying a mobile plan to paying taxes in the country. Now talking about the other aspect, i.e., NRI PAN card used by Indians living overseas. They might be running a business or working abroad, but still, they need to link with the financial system of India, especially if they have income in the country. So, when we talk about the difference between NRI PAN card & normal PAN card, we are discussing the same thing but with a different aspect. Confused? Not to worry, as here all your queries get solved. Read this guide and know the clear difference between NRI PAN card & normal PAN card.

NRI PAN Card

An NRI PAN card is a tax identity issued to individuals who are not living in India but are citizens of the country. It is for the non-resident Indians who, for several reasons such as education, good job opportunities, or residence spread across the world. Also, PIO (people of Indian origin), OCI (overseas citizen of India), foreign nationals, and international companies that are not registered in India can also apply for an NRI PAN card. Apart from the status difference, in terms of validity and structure, the PAN (Permanent Account Number) remains the same, like the normal PAN card in India.

It is issued to NRIs who want to conduct financial transactions and take part in investment activities in India. This involves managing bank accounts in India, purchasing property, investing in mutual funds and the stock market, or doing any transaction that needs a tax account number in India. Despite the physical absence, a PAN card helps the NRIs to remain in the financial and taxation loop in India. Apart from this, this card is considered a valid ID proof in India and helps the NRIs to comply with the tax rules of the country. While the format and design of the NRI PAN Card are the same as a normal PAN card, it is linked to the non-resident status of the cardholder for specific uses.

Normal PAN Card

A normal PAN card is issued to Indian residents living within the country. A PAN card is a personal identification number that secures the tax-related activities and financial transactions of Indian residents on a traceable, single thread. This includes banking transactions, salary, buying assets and property, or any activity that includes monetary transactions that are taxable under Indian law. Through normal PAN cards, the Indian government tracks the financial activities of Indian residents and makes sure they fulfill their tax liability.

NRI PAN V/s Normal PAN: Key Differences

Based on different factors, here is a quick comparison between NRI PAN Card and Normal PAN Card:

Advantages of Having a PAN Card

Here are the following benefits of having a PAN card by your side:

• Tax Management: A PAN card is used as a unique identifier for tracking financial records and tax filings.
• Simplified Transactions: It is one of the vital documents for investing in the stock market, conducting property deals, and engaging in mutual fund transactions.
• Identity Verification: A PAN card is globally recognized as a reliable identity proof across several services.

Why NRI PAN Card Is Important?

Apart from the benefits mentioned above, there are several more perks that an NRI PAN card offers to NRIs. These are as follows:

• Property Management: It is vital for an NRI to have a PAN card by their side to purchase or sell a property in India. It is one of the vital documents required for a smooth and legal transaction of property.
• Compliance with Tax Laws: An NRI PAN card helps NRIs to comply with the tax regulations of India concerning their income from the country. It is essential for NRIs as it helps them in maintaining their legal standing and tax implications with the financial institutions of India.
• Ease in Banking Operations: To open an NRO account and an NRE Account in Indian banks, NRIs need a PAN card. It is one of the vital documents required while opening a bank account in India. To manage income in India and overseas, opening these accounts is important for NRIs.
• Facilitation of Financial Investments: With a PAN card by their side, NRIs can easily invest in mutual funds, Indian stock markets, and other financial instruments. These investments further help in offering better returns to NRIs compared to other markets.

NRI PAN v/s Normal PAN: Application Process

The application process for both NRIs and Indian residents is straightforward, designed to be apply for the card from anywhere in the world. Moving further, let's know the application process for NRIs.

PAN Card Application Process for NRIs

As an NRI, to apply for a PAN card, you need to follow the steps mentioned:

• To apply for a PAN card, visit the official TIN-NSDL website.
• Fill out Form 49A with the correct information and upload all the requested documents.
• Additionally, attach digital copies of address proof, identification proof, DOB proof, and a recent passport-size photograph.
• Cross-check all the mentioned information and the attached documents before paying the PAN card fee.
• Once you make the payment, you will receive an acknowledgment receipt. It further assists you in tracking your PAN application status.

PAN Card Application Process for Indian Residents

There are two ways by which Indian residents can apply for a PAN card in India, i.e., online and offline. Moving ahead, let's know about them in detail.

Online Application Process

• Visit the official NSDL website to apply for a PAN card in India.
• As a part of verification, mention your Aadhaar card number.
• Carefully fill out the online PAN application form and upload the requested documents.
• Once you cross-check all the things using any of the available online payment options, pay the PAN card fee.
• After payment confirmation, you will receive a 15-digit acknowledgment number. Further through it, you can easily track your application status.

Offline Application Process

• To apply offline for the application process, Indian residents first need to download the application form from the NSDL website.
• Then, need to fill the form with correct information and attach the requested documents.
• After that, along with the demand draft or cheque, dispatch the filled form and attach the documents to the specified PAN service center. You can get the list of your nearby PAN card centres online, as mentioned on the official website.
• Within 15-20 days after application submission, you will receive your PAN card.

What Are the Documents Required for NRI PAN and Normal PAN Card?

Having a PAN card by your side in India requires submitting several documents to establish your address, identity, and age for an easy application process. Although the documents remain the same for both Indian residents and NRIs but some of them differ. Moving further, let's know the documents that both parties need to submit.

Documents Required for Normal PAN Card

Here is the list of documents required when applying for a normal PAN card:

• Identity Proof: Any of the mentioned documents
  • Passport copy
  • Voter ID card copy
  • Aadhaar card copy
  • Driving license copy
  • Pensioner card copy
• Address Proof: Any of the stated documents
  • Driving license copy
  • Passport copy (if address is mentioned)
  • Domicile certificate granted by the government
  • Recent utility bill (landline, electricity, gas, and more)
  • Bank account statement or bank passbook
• Date of Birth Proof: Any of the following documents
  • Copy of birth certificate
  • Copy of passport
  • Matriculation certificate copy
• Photographs: Two recent passport-size colored photographs

Documents Required for NRI PAN Card

To acquire an NRI PAN card, linking to the financial system of India, NRIs need to submit the following documents:

• ID Proof: Copy of Passport
• Overseas Address Proof: Any of the mentioned documents
  • NRE bank account statement in India
  • Overseas driving license
  • Bank accountant statement copy in the current resident country
  • An ID card issued by the government indicating the residence or nationality status
  • Copy of residence permit in the residence country, attested by the Indian Consulate/Embassy/ High Commission
• Proof of NRI Status: PIO or OCI card, if applicable
• Photographs: Two recent passport-size colored photographs

Final Thoughts

Whether you are an NRI wanting to invest in your home country or an Indian resident managing finances in India, having a correct PAN card eases your legal tax obligations and financial transactions in the country. To provide you with a clear idea here the above guide states the key difference between NRI PAN card & normal PAN card, and how they simplify things for an individual. In support of your journey, Savetaxs helps you with correctly filing your ITR in India and solves any tax-related queries. So, if you have any issues in knowing your tax liability or facing issues in filing ITR, connect with us. We have a team of professionals who can help you and do the whole process smoothly on your behalf.