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 transactions 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.
PAN Card for NRIs is a PAN issued specifically to NRIs to comply with tax regulations and to manage financial operations in India. This blog guide will break down every aspect related to NRI Pan Card, from the process to 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:
- 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.
- 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.
- Earning Income: If you are earning any taxable income in India as an NRI, filing for a PAN is mandatory.
- 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.
- Repatriation of Funds: To validate the source and equality of the repatriating funds, you need to have a PAN card.
- 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.
- 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 residing outside India
- Foreign Nationals (Non-Indian Citizens): For foreign individuals who want to invest in Indian companies, Act as directors in Indian entities, or own or inherit assets in India.
- Foreign Companies or Entities: For foreign LLPs, corporations, trusts, or funds.
However, the PAN card remains the same, but the form under which it is issued differs. For NRIs, Form 49A is required, while for foreign citizens or business entities, Form 49AA is necessary.
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 a new PAN for Indian citizens, nonresident Indians, entities incorporated in India, and any other unincorporated entity formed in India.
Who should use it?
- Indian citizens living in India
- Indian citizens residing abroad (NRIs)
- Indian businesses or entities
What is Form 49AA?
Form 49AA is the PAN application form for foreign citizens and foreign entities who have income or financial transactions in India. This includes:
- Foreign nationals (who are not Indian citizens)
- Foreign companies/entities operating in or investing in India
Who should use it?
- Foreign individuals with no Indian passport
- Foreign nationals 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
- The form is to be filled in English alphabet. If you are filling out the form manually, make sure to use CAPITAL LETTERS and black ink. In the event of offline filing, ensure that you fill in only one letter in each box.
- The fields marked with an asterisk (*) are mandatory and cannot be left empty.
- Do not fill in any false details.
- Do not overwrite on the form, and read all the instructions given at the end of the form.
The Picture
When filling out the form online, ensure that you provide two high-quality images, as these will be visible on your PAN card. And if you are filing offline, do not staple the picture over the form.
Thumb Impression/Signature
Use only your left thumb impression when filling out 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
This is a very integral part of your PAN filing, as an AO code indicates the tax jurisdiction under which you will fall. The full form of AO is Assessing Office. Now, the primary function of these codes is they inform the relevant authorities about which tax law applies to an individual.
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.
Documents Required to Apply for NRI Pan Card
- Proof of Identity (POI): Copy of Passport
- Proof of Address: Bank statements from your foreign country, OCI/PIO (if applicable), utility bills, driver's license issued abroad.
- Proof of Indian Address: Indian bank statements, utility bills, or an Aadhaar card (Only required if you wish to provide an Indian communication address.)
- Proof of Date of Birth: A passport is enough.
For Foreign Entities and Citizens
- Certificate of incorporation
- Address proof of the entity (like a bank statement or utility bill)
- Attestation by the Indian embassy, apostille, or authorized official
- PAN application signed by an authorized representative
Process to Fill NRI Pan Card Form Online
- Step 1: Visit either the UTIITSL website or the Protean Website (NSDL) to apply for an NRI PAN Card
- Step 2: If you are an NRI, select "PAN card for Indian Citizen/NRI- Form 49A." If you are a foreign citizen, select "PAN Card for foreign citizen- Form 49AA."
- Step 3: Complete the form with all the required PAN Card details, including your name, date of birth, address, email address, and contact number.
- Step 4: Select the applicant category and status as 'Individual' and then 'Non-Resident Indian'.
- Step 5: Upload all the documents asked.
- Step 6: Once all the documents are uploaded, proceed to he fields either through credit cards, UPI, or net banking. The fees for NRI PAN Card depend on whether a physical PAN Card is required or an e-PAN card is needed.
- Step 7: Once you have successfully paid, an acknowledgment number will be generated. Note that to track your application.
- Step 8: Now, print out your generated acknowledgment number receipt.
- Step 9: Paste two recent passport-size photos on the form and then sign it.
- Step 10: Next, send the signed acknowledgment number receipt, along with a copy of all required documents attested by the Indian embassy or a consulate, to the UTIITSL or Protean PAN Card office within 15 days of applying.
Process to Fill NRI Pan Card Form Offline
- Step 1: Download the PAN application form for NRI 49A or 49AA from either the Income Tax website or the Protean website.
- Step 2: Complete the application form with all the required details.
- Step 3: Attach your photograph and sign the PAN application form.
- Step 4: Now submit both the application form and all the documents to your nearest PAN center.
- Step 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
- Step 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 a PAN Card until you are willing to do any financial transaction 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
- Corrrection or Reprinting of your PAN Card
- 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.
Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult with either a Chartered Accountant (CA) or a professional Company Secretary (CS) from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.
