PAN Card for NRIs - Comprehensive Guide

Think of a PAN card like VIP access to the Indian financial market. Without one, you cannot carry out any financial transactions in India. A Permanent Account Number (PAN) is a mandatory document to conduct any financial transaction in India. The primary use of a PAN card is for taxation purposes; however, it is also necessary if you wish to invest in the Indian market, open a bank account, or purchase or sell property and other assets.

A PAN Card for NRIs is a PAN explicitly issued to Non-Resident Indians to comply with tax regulations and manage financial operations in India. This guide breaks down every aspect related to the NRI PAN Card - from the process to the benefits, document checklist, and more.

Why Does an NRI Need a PAN Card?

A Non-Resident Indian must have a PAN card if they engage in any of the following activities:

1. Investments

   As an NRI, if you wish to invest in the Indian stock market, mutual funds, and other government securities, having a PAN is non-negotiable, as without one, a broker won't be able to open your Demat or trading account.

2. Property Dealing
   

   As an NRI, whether you want to buy, sell, or rent a property in India, a PAN card becomes mandatory for registration and other compliance purposes.

3. Earning Income
   

   If you are earning any taxable income in India as an NRI, filing for a PAN is mandatory.

4. Banking
   

   To manage your earnings and finances in India as an NRI, you need to open an NRI bank account. There are three types of NRI bank accounts: NRE, NRO, and FCNR. Hence, to open a bank account in India, you need to have a valid PAN.

5. Repatriation of Funds
   

   To validate the source and equality of the repatriating funds, you need to have a PAN card.

6. Corporate or Partnership
   

   As an NRI, if you're acting as a director or a partner in an Indian company or LLP, you need to have a PAN card legally.

7. Loan Application

   You are not eligible to get a loan sanctioned from an Indian bank without a PAN card.

PAN Application Categories for NRIs and Foreign Applicants

Type of PAN card needed, spending status of the NRI

• NRI Individuals (Indian Citizens Residing Abroad): For Indian passport holders living outside India.
• Foreign Nationals (Non-Indian Citizens): For foreign individuals who want to invest in Indian companies, act as directors, or own/inherit assets in India.
• Foreign Companies or Entities: For foreign LLPs, corporations, trusts, or funds.
  
  While the PAN card remains the same, the application forms differ:
  
  NRIs → Form 49A
  Foreign citizens/entities → Form 49AA

What is Form 49A?

To obtain a PAN card, you must complete Form 49A. This form must be filed by both individual and non-individual entities in India, including new PANs for Indian citizens, non-resident Indians, entities incorporated in India, and any other unincorporated entity formed in India.

Form 49A must be filed by:

• Indian citizens living in India
• Indian citizens residing abroad (NRIs)
• Indian businesses or entities

What is Form 49AA?

Form 49AA is for foreign citizens and foreign entities with income or financial transactions in India, such as:

• Foreign nationals (who are not Indian citizens)
• Foreign companies/entities operating in or investing in India

Who should use it?

• Foreign nationals without an Indian passport
• Foreign individuals earning income in India
• Foreign companies investing or operating in India

Things to Consider While Filing a PAN Card for NRIs

As an NRI, you must complete Form 49A or Form 49AA accurately to get a PAN Card. Keep the following points in mind when you apply for an NRI PAN Card.

The Basics

• Fill the form in English alphabet only.
• For manual filing, use CAPITAL LETTERS and black ink, entering one letter per box.
• Fields marked with an asterisk (*) are mandatory.
• Do not provide false information or overwrite details.
• Carefully read the instructions at the end of the form.

The Picture

• For online filing, upload two high-quality photographs.
• For offline filing, do not staple photographs on the form.

Thumb Impression / Signature

• Use left thumb impression only.
• Your signature/thumb impression must be partially on the photo and partially on the form.
• Ensure it is placed on the left side of the form.

When signing the form or placing your thumb impression, ensure that your signature or thumb impression is partially on the photo and partially on the form. Lastly, please ensure that the signature or impression is placed on the left side of the form, not on the right.

AO Code for NRI PAN

The AO (Assessing Officer) Code defines your tax jurisdiction. It determines which tax laws apply to you.

You can obtain your NRI AO Code from:

• The NSDL (Protean) website
• PAN centers
• Income Tax Department offices

You can obtain your Assessing Officer code for NRIs, along with related information, on the NSDL website, now known as Protean, at PAN centers, or at the Income Tax office.

Document Checklist for NRI PAN Card

To apply for a PAN for NRIs or foreign nationals, please be prepared with the documents listed below to ensure a smooth process.

For NRI Individuals

• Proof of Identity: Passport copy
• Proof of Address: Foreign bank statement, OCI/PIO card (if applicable), utility bill, or foreign driver’s license
• Indian Address Proof (optional): Indian bank statement, utility bill, or Aadhaar (if choosing an Indian communication address)
• Date of Birth Proof: Passport

For Foreign Citizens & Entities

• Certificate of incorporation
• Address proof (bank statement/utility bill)
• PAN application signed by an authorized representative
• Attestation by the Indian Embassy, Apostille, or authorized official

Process to Fill NRI PAN Card Form Online

1. Visit the UTIITSL or Protean (NSDL) website.

2. Select

• “PAN Card for Indian Citizen/NRI – Form 49A” (for NRIs)

• “PAN Card for Foreign Citizen – Form 49AA” (for foreign nationals)

3. Enter your name, DOB, address, email, and contact number.

4. Select the applicant category and status as 'Individual' and then 'Non-Resident Indian'.

5. Choose "Individual" → "Non-Resident Indian".

6. Upload required documents.

7. Pay the applicable fee via credit card, UPI, or net banking.

8. An acknowledgment number will be generated - keep it for tracking.

9. Print the acknowledgment form.

10. Paste two passport-size photos and sign.

11. Send the acknowledgment with attested documents to the UTIITSL or Protean office within 15 days of applying.

Process to Fill NRI Pan Card Form Offline

1. Download the PAN application form for NRI 49A or 49AA from either the Income Tax website or the Protean website.

2. Complete the application form with all the required details.

3. Attach your photograph and sign the PAN application form.

4. Now submit both the application form and all the documents to your nearest PAN center.

5. Pay the fees for the PAN card application. The PAN card fees depend on whether the application is for a physical PAN card or an e-PAN

6. After paying the fees, you will receive your PAN acknowledgment number.

What is the Processing Time for an NRI Pan Card?

After the NRI has paid the fees and submitted the documents, it will take approximately 15 to 20 days to complete all the necessary steps successfully. The PAN Card will be delivered to the address mentioned in the application.

Is It Mandatory for NRIs to File a PAN Card?

No, it isn't mandatory to file for a PAN Card unless you plan to conduct any financial transactions in India. As an NRI, if you wish to engage in economic activities that involve filing your taxes, such as buying a property, operating bank accounts, investing in the Indian stock market, or more, you need to file a PAN Card mandatorily.

Benefits of PAN For NRIs

• A PAN card simplifies the process of setting up your bank account in India.
• You can easily manage all your tax implications through a PAN card, making tax filing for NRIs easier.
• You can seamlessly invest in India through a PAN for legal tax recording and verification.

How Savetaxs Can Help NRIs With Their PAN Card

We at Savetaxs have expertise in helping NRIs manage their financial planning and taxes in India. Our team of CAs brings more than 30 years of experience to the table in handling NRI PAN Card issues.

We can help you with every PAN-related service, like

• New PAN Card Filing Application
• Minor PAN Card
• PAN Card citizenship update
• PAN Card Correction or Reprinting
• End-to-end CA guidance and much more

A PAN Card is more than just an ID in India, as mentioned earlier, it's your VIP access to the Indian financial and investment market. We at Savetaxs offer 24/7 assistance across all time zones, so don't let the distance hold you back from filing your NRI PAN Card online.