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Key Takeaways: While you live outside India, you may still want to buy a property or invest in mutual funds in India. To be able to do either of these, you will need a PAN card. Let us look at why you need to have a PAN card in India and the documents you will require to apply for a PAN card.
Introduction
A PAN (Permanent Account Number) card is an alphanumeric identifier with ten characters. The Indian Income Tax Department issues this card. If you are an existing taxpayer and want to file a return of income in India or buy a house or even invest in India, a PAN card is mandatory. Another point to note, you cannot hold more than one PAN card in India.[1]
PAN Card Application for an NRI
If you have a source of income in India, you will need a PAN to file your taxes, even if you live abroad. This income could be generated by renting out real estate, receiving dividends from shares, getting returns from mutual funds, or a business in India. Even if you do not have an income source in India right now, it still helps to have a PAN card if you decide to perhaps invest in India in any way.
Documents Required for Applying for a PAN Card[2]
Completing a PAN application for an NRI is a relatively simple and straightforward process. To get started, here is a list of the necessary documents required for an NRI PAN card:
Steps to Apply for a PAN Card for NRIs
The entire PAN application process is simple, convenient and seamless. Any eligible NRI can apply at the click of a button. Here are the steps to apply for a PAN online:
Foreign Citizens Applying for PAN
Even if you are a foreign citizen who wants to apply for a PAN card in India, you will have to start by filling out the form. You can visit the TIN-NSDL website and fill out form 49AA. Individuals who have foreign nationalities, OCI holders and PIOs need to use this form to get a PAN Card.
In both instances, you will have to mention your residential address if they do not have one in India, you can provide the address where you are staying currently. You will also have to indicate your communication address on the form.
If you’re a foreign citizen applying for a PAN card with an Indian office address, you need to provide the following documents as proof for the office address.
Holding More than One PAN Card[2]
As per the income tax laws, you can have only one PAN card per person. You can surrender a duplicate PAN allotment by filling out and submitting a PAN Change/Correction Request form.
Final Note: A PAN card is a mandatory document for income tax filing and investments in India. It is even necessary if you want to open an NRO or NRE account. Applying for a PAN card is easy; however, it helps to keep your documents ready to upload.
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*This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.