Is PAN compulsory if you don’t file taxes or have income in India?

A Permanent account number card is a card given by the IT Department in India. PAN Number stands for Permanent Account Number. A PAN card has made it much easier for the Income Tax Department to keep track of the people’s tax related transactions and other things as well. It can work as a personal ID for the person also. A PAN number is 10 digits and it is alphanumerical. It is very unique and no two people will have the same PAN number.

What is a PAN?

I PANcard in India can be compared to a SSN in the US. They are very similar. You need to have a PAN number for financial transactions, taxes, investing, and many other things. For Indians living abroad, that want to invest in India, you all need a PAN card. Even though a PAN card comes from India, you do not have to be in India to obtain one. If you have a PAN enquiry then you write into one of the pan assistance providers (agents/brokers) like: www.PanCardOnline.com and you can get a pan application form and apply for a pan card online from anywhere in the world. Once you get one from them, then you can also track the status of your pan card too.

You can’t open a bank account in India without a PAN card. You do not have to be an Indian citizen to have a PAN card; you can also be a citizen of other countries. To obtain a PAN card, you just need to fill out a simple form, provide a few documents, the fee, and two passport size photos. The easiest way to provide address proof for getting a PAN card is to provide a bank statement. It has been made very simple to get a PAN card so that more people can get a PAN to invest in India.


Is it Necessary for NRIs to have a PAN Card Number?

It is now compulsory for all Indians to have a PAN number as per the IT department of India. Everyone wanting to invest in India now, must have a PAN number as well. As per the Indian Tax Department, it is now necessary to have a PAN number in order to file your taxes in India. You need it when filing for you tax returns, most kinds of investments, and other financial transactions. When investing, a PAN card is needed when you open a Demat Account, invest into stocks, purchase or sell shares, purchase or sell mutual funds, or investing in other assets in the market. Other reasons you need a PAN is to buy real estate, to open a bank account, to get a loan, getting a passport, getting a visa, and to receive money from abroad.

Is a NRI (Non Resident Indian) required to file taxes in India because he has a PAN card?

So far, it is not required for an Indian to file even if he holds a PAN card. You only need to file taxes if you have an Income generated in India. When you file taxes, it does not mean that you will always be paying taxes. If you don’t make any money in India, you can file zero taxes. When you do this, it makes you have better credit and it makes it simpler to get a loan.

 

How to Get a PAN Card or the PAN Number from India?

PAN stands for Permanent Account Number (PAN) which is a 10 digit alphanumeric number issued by the Income Tax Authority of India in the form of a laminated card. It’s compulsory to quote PAN in all financial & investment related plus tax related transactions carried in India & on return of income. It can be considered as a Indian TAX number, like a SSN in the U.S.A.

Due to the interest rates in India, many Indians that are living in the US and many other countries are investing money into India. The interest rates in India are 5% higher than in the US. Although many Indians are investing in India, there are some things that they must take care of before doing so. The first thing that you will need is a PAN card. PAN stands for Permanent Account Number. It is required, when investing as well as many other things, which all Indians can quote their PAN. I can let you know the procedure for obtaining a PAN card in this article itself.

You do not need to be in India to apply for a PAN card, you can do it just as easily from abroad. A PAN card is necessary for a lot of different things, but can also just be used as a form of Identification. A PAN card is necessary for NRIs, OCIs, and PIOs. Even foreign citizens with Indian origin can have a PAN card. To apply for a PAN card, you will need the application filled out, two passport size photos, address proof, the fees to submit your PAN card, and a passport copy. Bank statements are the easiest proof of address. Any other address proof should be apostilled of attested by the Indian embassy. The application for a PAN card is made very simple so that you can quickly fill it out.

There a many brokers who are appointed by the IT Department to submit your PAN card forms on behalf of you. Websites such as: nripan.com and pancardonline.com are brokers willing to help you obtain a PAN from abroad. This will require you to mail or courier these documents to them. A courier is recommended because then you can track your important documents. Usually an applicant will receive their PAN cards by a speedy post mailed by the PAN department. This takes about 15 business days.

Again, a PAN card is used for a variety of things.

·Shopping for high priced items

·Filing for your income tax returns

·Investing in India – To trade shares, buy mutual funds, insurance, apply for loans, open demat account, etc.

·Real estate and the buying and selling of property in India

·And many more things

It is always better to obtain your PAN card sooner than later because the process for obtaining them might get more and more difficult or more expensive. It can be a very simple process, just contact one of the brokers I have mentioned above and get started. These brokers and extremely friendly, prompt with their responses, and get the job done in a very timely manner.

Is it compulsory for NRIs to have a PAN number?

The Permanent Account Number (PAN) is a revolution, started by the Income Tax Department, and spreading far and wide today. It has become an indispensable tool of the IT Department, in not only identifying the tax payers, but in a load of other means as well, some of the benefits of having a pan number are:

  • Paying tax / Filing tax returns
  • Operating DEMAT account
  • Depositing more than Rs.50, 000/- in the bank
  • Investing in the financial market and/or post office savings an amount exceeding Rs.50, 000/-
  • Sale or purchase of motor vehicles (excluding two wheelers)
  • Sale or purchase of immovable properties worth Rs.5 lakh or more
  • Applying for a new telephone connection (landline and cellular)
  • Paying Rs.25, 000/- or more against hotel/restaurant bills

Is it compulsory for NRIs to have a PAN number?

PAN acts as your personal ID proof and enables you to check if you have paid all the taxes till date. Many feel that having a PAN implies that you have to pay tax. While the converse of this is true, this is not. You have to file IT Returns, only when you have a taxable income, or are getting any such income.

Thanks to technology, applying for and getting a PAN has, today, literally become a child’s play. All you need to do is submit your details in ‘Form 49A’ of the IT Department to any of the PAN facilitation centers in your locality. This form may be a Xerox copy or downloaded.

You can also apply for PAN online by just visiting the either of the sites: www.PanCardOnline.com
www.nripan.com

UTIISL and NSDL are the two authorized agencies to accept applications and begin processing PAN.

Usually it takes about 2-3 weeks for your PAN to be delivered at your doorstep, however if you require the same urgently, you can opt for TATKAL PAN by paying the charges applicable through your credit card. The fees payable is only Rs.60/- plus service tax, presently @ 12.24 per cent, totaling Rs.67/-.

Where to apply for the Lost pan & for corrections in a PAN?

Incase you have lost your original pan card then a duplicated can be applied by going to:

http://www.pancardonline.com/duplicate.html

Also if the applicant wants to get some kind of pan correction or address change in his pan card then the same can be done by going online this site:

http://www.nripan.com/pan-correction.html

What is a PAN Number and the benefits of Permanent Account Number?

Permanent Account Number (PAN)is a typical ten-digit alphanumeric code that acts, more than anything else, as your personal identity card issued by the Government of India. A typical PAN would read like ‘ABC123456D’. PAN is considered to be similar to the social security number issued by the US Government to all its citizens.

PAN issued by the Income Tax Department of the Government of India, is issued primarily for fulfilling an individual’s financial obligations and transactions. The following persons MUST have a PAN:

  • Any person whose total income, or the total income of any other person in whose he is assessable (as in the case of HUF) under the Act exceeds the maximum amount that is not chargeable to tax; or
  • Any person carrying on any business or any other profession whose total turnover, total sales or gross receipts is likely to exceed Rs.5 lakh, or has exceeded the same amount in the previous year; or
  • Any other tax paying person

The requirement for applying for PAN has now been extended to the whole of India.

A person is required to quote PAN for the following transactions:

  • Any dealings with the IT Department like filing of returns, challans for payment of any tax or sum due to the department etc.
  • Certain notified transactions

PAN is also required for activities such as:

  • Opening an account
  • Getting a phone line
  • Receiving salary or professional fees
  • Prevent tax evasion by keeping a track of monetary transactions

PAN, once obtained is permanent and is unaffected by change of address.

Frequently Asked NRI Questions:

Q. What is the purpose of having a PAN under the new series?

A. PAN will help you have easy transactions and dealings with the IT Department and other Government organizations.

Q. What is PAN under the new series?

A. PAN is a unique, personal, permanent, ten-digit alphanumeric identification number issued by the IT Department of the Govt. of India. Under the new series, PAN is being used to replace the old PAN or GIR number.

Q. Who is to have a PAN? Or Who must apply for PAN?

A. The following persons must have/apply for PAN:

  • Individuals
  • HUF
  • Companies
  • Partnership Firm
  • Association of Persons
  • Body of Individuals
  • Trusts
  • Artificial Judicial Persons
  • Representative Assesses

Q. How to apply for PAN?

A. You are required to fill up the details asked for in Form 49A of the IT Department. You can also download the same from the department’s website. While filling up the form, you are required to furnish the following information:

  • Full Name (initials should be expanded)
  • Date of Birth (in case of individuals only) / Date of Incorporation or formation (in case of companies etc)
  • Father’s full name (in case of individuals)
  • Married women are also required to provide the full name of their father
  • In case of NRI, the applicant is to get her/his ID and address proof attested by the Indian Embassy in their respective country.

Q. Where to apply for PAN?

A. You can apply to the Assessing Officer, IF already taxed; or to the Assessing Officer dealing with new taxpayers, IF you have not been taxed earlier.

Q. What will the PAN Card contain?

A. A typical PAN, apart from having the number would contain your name, date of birth, father’s name, your photograph and your signature. In case of other taxpayers, the card would have the PAN, name and date of incorporation or formation.

Q. Can a person, under the new series, have more than one PAN?

A. Please note (and remember) that no one can have more than one PAN. Failure to comply with this rule shall attract a penalty anywhere between Rs.500/- and Rs.10, 000/-.

Q. When is it compulsory to quote PAN?

A. Any and every person having a PAN is required to furnish the same:

  • While filing returns to the IT Department;
  • Any correspondence with the IT Department regarding challans for payment of direct taxes
  • Opening a Bank account
  • Acquiring a telephone connection (landline and cellular)
  • Selling or purchasing a motor vehicle
  • Selling or purchasing immovable property worth Rs.5 lakh (INR 500,000/-)
  • Bank transactions exceeding Rs.50, 000/-
  • Transactions with Post Office exceeding Rs.50, 000/-
  • Selling or purchasing securities (shares or debentures etc.) whose contract value exceeds Rs.10 lakh (US$ 1 million)
  • Paying hotels or restaurants amount exceeding Rs.25, 000/-

You must also furnish PAN, if tax is being deducted at source, to the person deducting your tax, so that the same could be mentioned in the TDS certificate.

Q. Do I need to apply for PAN when moving from one city/state to another?

A. While you are not required to apply for PAN while changing your residence, you are to inform about the change to the Assessing Officer for transfer of your PAN and other documents to the new Assessing Officer.