What is PAN Card?
PAN Card is an all India Permanent Account Number issued by the Income Tax Department of India under the supervision of the Central Board of Direct Taxes (CBDT). It is issued to all identifiable juristic entities under the Income Tax Act, 1961. Its primary purpose is to keep a track of all the monetary transaction of high-net-worth individuals (HNWI).
PAN is an universal identification for all financial transactions above specified limits. It is a 10-character alphanumeric identifier which is unique for every individual, hence also serves as an important identification proof. It is valid for life-time of the PAN holder. As its not a nationality proof, it iss not affected by the change of address.
Why Do NRIs Need PAN Card?
If you are an NRI, it is mandatory for you to possess a PAN card if you make any financial transaction in India that are listed below:
- Receive income in India in the form of salary or professional fees, which is taxable.
- Opening a bank account.
- Opening demat account.
- Applying for issue of credit card or debit card.
- Investing in Mutual Funds.
- Sell or purchase property or assets.
- Applying for a loan
- Applying for a passport or visa
- Applying Foreign remittance
- Deposit or withdraw with bank exceeding Rs. 50,000.
- As per SEBI, PAN card is required to trade in Indian stock market.
How to Apply for PAN CARD?
One can apply for PAN by submitting the prescribed PAN application to the authorized PAN agency of the district or through online submission to NSDL along with 2 face-photos, ID proof, address proof and fee. In case of Re-print (re-issue), a photocopy of the old PAN is also required.
- Application for PAN card is to be made along with the Form 49AA which you can submit online as well as via post. Link to Form 49AA - https://tin.tin.nsdl.com/pan/form49AA.html
- After submitting the form online, you will receive a unique 15-digit acknowledgement number for future reference of your application submitted.
- After the form is submitted take the print out and attach two passport size photographs in the space provided in the acknowledgement. Sign the acknowledgement, this signature will be used as your identification for future transaction against your PAN card.
- Attach the necessary documents (i) proof of identity (ii) proof of address (iii) 2 color passport photographs with white background and send the filled in acknowledgment form to the following address -
Income Tax PAN Services Unit, NSDL e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune 411016
Super scribe the envelope with
'APPLICATION FOR PAN - Acknowledgement Number'
(e.g. 'APPLICATION FOR PAN - 881010100000097').
What is the Fee for Applying PAN Card?
PAN application processing fee for Form 49AA is 105.00 INR . If the address is outside India the fee is 971.00 INR. Payment can be done via check, demand draft, credit/debit card or net banking
Application Processing Time: It takes about one month to receive the card and is sent by registered India Post. Within 15 working days of receiving your coupon number, the actual card will be delivered to your address., depending on the country you reside in.
Points to remember while filling Form 49AA -
- AO Code is the International Taxation Directorate that is applicable.
- A foreign address can be filled in if the applicant does not have any Indian address of their own. Additional courier charges are applicable in this case.