PAN Card is now Compulsory for NRIs, PIOs, OCI and Foreign Nationals.!!
What is a NRI Pan Number (India TAX ID)?
PAN Number is a ten-digit alphanumeric number that can be considered as a Indian TAX ID, which is issued in the form of a laminated card, by the Indian Income Tax Department.
Is it Necessary for NRIs to have a PAN Card?
With effect from April 1st, 2007, it is now compulsory for all NRIs & Foreign Passport holders to quote a PAN number if they are carrying any kind of financial OR investment related transactions in India. If you don’t have a PAN card, then tax shall be deducted @20% or as per the prescribed rate in finance act – whichever is more.
Is it necessary for NRIs to file taxes in India if they have a PAN Number?
You PAY taxes only if you generate income from India. Filing taxes does not mean you pay taxes. Filing tax returns & paying taxes are 2 different things. But, it is always advised to file ZERO taxes even though you are not making any money in India, as it enhances your credit history and credibility in the govt’s eye & helps you get loans out of India.
Benefits of a PAN Card for NRIs.
Having a PAN number does not bring any benefits, rather it is a compulsion laid by the Income Tax Department for NRIs, PIOs & OCIs.
Other USES: You need a PAN if you want to open a Demat or bank account, get loans, Buy-Sell real estate, enjoy income from rent, get foreign remittance, invest in India, etc.