As per the Income Tax rules in India, an NRI is not required to hold a Permanent Account Number (PAN). However, in case he/she needs to enter into a financial transaction or wish to file a tax return in India, a PAN is required. This is especially gaining importance due to recent regulatory changes where threshold limits for PAN disclosure has been reduced by the government. When it comes to applying for PAN, it is a common misconception amongst NRIs that it is difficult to get a PAN sitting outside India which is incorrect.
In this article, I’ll explain how NRI can apply for and obtain a PAN in India.
What are the consequences of not applying for PAN?
First let us understand the consequences of not applying for PAN. Section 272B provides for penalty in case of default by the taxpayer in complying with the provisions relating to PAN, i.e. not obtaining PAN or knowingly quoting or intimating incorrect PAN in any prescribed document or to the person deducing tax or person collecting tax. Penalty for this is is Rs. 10,000.
Hence, before applying for a new PAN, you need to check as to whether you’ve applied for a PAN before. If you come to know that you’ve been allotted more than one PAN, then you should immediately surrender the additional PAN). Also, in case of a lost PAN card, one should apply for a “re-print of lost PAN”, instead of applying for fresh PAN.
Where to apply for PAN?
An NRI has to make an online application on the website of National Securities and Depository Limited (NSDL) https://tin.tin.nsdl.com/pan/.
Here, one can find two options:
- New PAN for Indian citizens (Form 49A), and
- New PAN for Foreign citizens (Form 49AA)
Kindly note that if you are an Indian citizen residing out of India (meaning, that you’ve not taken foreign citizenship), you’ll have to click on Form 49A. If you have surrendered your Indian citizenship, in that case, you’ll have to click Form 49AA.
What next after filling the online form
After filing the form, you’ve to take a printout of it, affix two colour photographs and sign in black ink. The documents that need to be submitted along with your application have been given on the Income Tax website:
- For Indian citizen: http://www.incometaxindia.gov.in/Documents/Left%20Menu/individual-citizen.htm
- For Foreign citizen: http://www.incometaxindia.gov.in/Documents/Left%20Menu/individual%20not%20a%20citizen.htm
- The acknowledgment duly signed, affixed with photographs along with Demand Draft, if any, and proof of ID/address proof need to be compiled and envelope should be super scribed with ‘APPLICATION FOR PAN — N-15 digit Acknowledgement Number’ (e.g. ‘APPLICATION FOR PAN — N-881010200000097’).
- After doing this, send the application to the following address so as to reach within 15 days of online application:
- ‘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 – 411 016’.
Cost of application and how to make payment
The fee for processing PAN application is 107.00 (
93.00 + 14.5% service tax). However, if any of the address (residence/office) is a foreign address, the all inclusive fee is Rs. 989.
Mode of payment can be demand draft, credit / debit card or net banking. If payment is by demand draft, it has to be in favour of “NSDL – PAN” and should be payable at Mumbai.
Special provisions for foreign citizens
- If a foreign citizen mentions foreign address in their application if they do not have an Indian address, note that this facility is available presently only in some 105 countries, the list is available here. In case of applicants from other countries, they will have to contact NSDL customer care.
- It is mandatory to provide the Assessing Officer (AO) Code in the application. In case of foreign citizen, one can enter default code for International taxation i.e. Delhi Regional Computer Center (RCC) (at present DLC – C – 35 – 1)
- Providing details of Representative Assessee (RA) is not mandatory in the PAN application for such applicants. Hence, this column may be left blank. However, if the RA details are provided, proof of identity and address along with copy of power of attorney (in case RA is a tax consultant) shall be required in respect of RA also in addition to the applicant.
- If a foreign citizen mentions an Indian address as her office address, there are some additional supporting documents like letter of appointment etc. that need to be provided.
| How to track the status of PAN application You can track the status of your application using the 15 digit unique Acknowledgment Number on the NSDL website after three days of application using this facility. The link for the same is this: https://tin.tin.nsdl.com/pantan/StatusTrack.html. For more information or enquiry, one of the following modes can be adopted: E-mail: |
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