For NRIs, a PAN card is more than a mere formality; it’s a crucial passport to financial activities and investments in India. Whether it’s for managing investments or simply staying tax-compliant, a PAN card stands as a non-negotiable part of your financial toolkit in the Indian economy.
Why does an NRI need a PAN card?
A PAN card is crucial for NRIs taking part in India's economic life. Here's why:
- It's the first step in investing in Stocks or Mutual Funds.
- Opening NRE / NRO Accounts, which help manage money in India, requires a PAN card.
- A PAN card is a must-have for buying or selling property over ₹10 lakh.
- If you earn in India, whether through salary, rent or other means, you'll need a PAN card for tax filing purposes.
Documents required to apply for NRI PAN card
When you're ready to apply for your PAN card as an NRI, you'll need to have certain documents:
- Two recent passport-size photos
- A copy of your passport
- Include a copy of your PIO/OCI card
- Overseas proof of address, like a bank statement or a residential permit
- And if you're already banking with an NRE account, a copy of a statement showing at least two transactions within the last six months, verified by the proper authorities
Procedure for PAN Card application by an NRI
For NRIs, the journey to obtaining a PAN card can be done online:
- Start your PAN card journey at either the UTI Infrastructure Technology And Services Limited (UTIITSL) or Protean (previously known as NSDL e-Governance Infrastructure Limited) websites, both of which are officially sanctioned to manage PAN applications.
- Choose the New PAN for Indian Citizens (Form 49A) option.
- Complete the digital form with your personal details, such as your name, date of birth, and contact information, and make sure to select 'Non-Resident Indian' in the status section.
- Scan and upload all necessary documents, checking that they are clear and readable.
- Make the payment for the application through various online modes like Credit / Debit Cards, NetBanking or UPI.
- Once submitted, don’t forget to note your application's acknowledgment number; this is vital for tracking your application's progress.
- Take a printout of the acknowledgement, sign it, and affix two recent passport-sized photographs.
- You must send the acknowledgment, along with the original documents or their attested copies (which must be certified by an Indian embassy or consulate), to the chosen agency within 15 days. Address the envelope with 'APPLICATION FOR PAN - Acknowledgment Number'.
- Await the arrival of your PAN card at your designated address.
Procedure for payment
The fee for acquiring a PAN card varies, hinging on whether you're opting for a physical PAN card or an electronic version (e-PAN), and also on the delivery location you prefer:
- Opting for a physical PAN card sent to an overseas address? The charge is ₹994, which includes both the dispatch fee and the application cost.
- If you wish for the physical PAN card to be dispatched to an address within India, the cost is a more modest, at ₹107, GST included.
Paying for a PAN card can be done online using Internet banking, Credit / Debit Cards and UPI.
Do’s while filling PAN application form
- Verify all your personal details meticulously to prevent any discrepancies that could lead to application rejection or future rectification hassles.
- Confirm that the name you enter matches exactly with the one on your passport because inconsistencies can lead to significant identity verification issues.
- Attach a recent, high-quality photograph to ensure recognizability, as this photo will be used for identification across various financial platforms.
Don’ts while filling PAN application form
- Don't leave any required field empty to avoid the application being returned as incomplete, which could delay the entire process.
- Don't provide past or invalid documents for proof, as outdated documents can result in the rejection of your application.
- Don't leave the payment process incomplete or with any errors, as mistakes here could not only delay your application but also potentially lead to transaction issues.
Is it mandatory for an NRI to have a PAN?
It's not mandatory for an NRI to have a PAN for all activities, but it is essential for conducting a wide range of financial transactions in India. If an NRI wishes to undertake any economic activities that involve income tax payment or filing tax returns in India, such as investing in securities, buying property, or operating bank accounts, a PAN is required.
Benefits of PAN to NRIs
- It simplifies the process of setting up bank accounts, which is the first step in establishing a financial presence in India.
- Adhering to tax duties is more straightforward with a PAN, as it's central to any tax-related activity, including declaring and paying your dues to the Indian authorities.
- Investment opportunities, especially in Mutual Funds, require a PAN for verification of identity and legal tax recording.
Axis Bank has customised its offerings to cater to NRIs. Among these tailored solutions are the NRE Savings Account, NRO Savings Account, and FCNR (B) deposits, each designed to optimise the financial well-being of Indians overseas.
Also Read: Documents needed for NRI account opening in India
FAQs
Q. Is the fee charged for an NRI PAN card different than that charged for PAN card for Indian residents?
Yes, the fee varies depending on the address provided in the application. Applications with an overseas communication address incur additional charges.
Q. How do NRIs check the status of their PAN card application?
NRIs can track their application status online using the acknowledgment number provided post-submission.
Q. How long does it take to get PAN card for NRIs?
The process usually takes about 15-20 working days, depending on the verification process and document accuracy.
Q. Is there any distinguishing factor to detect if a PAN card is for NRIs or resident Indians?
No, there is no visible difference. The application process and the document itself are the same for both NRIs and resident Indians.
Q. Can I opt for only an e-PAN card if I am an NRI?
Yes, NRIs can opt for an e-PAN, which is a digitally signed PAN card sent via e-mail and is as valid as a physical PAN card.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
