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: 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.


Income Tax Planning in India –What’s the right way to do Taxes.!

People in India require filing their income tax returns every year by the last date of March. Assessment years begin from the 1st of April each year and ends on 31st March the following year. Assessment is done for the previous year during the time frame known as the accounting year. All your income earned during the accounting year is assessed after you file your tax return. Many Indians ignore the tax for most of the year and it is only in February or early March every year that they get up and running with their accounting and financial transactions for filing of income tax returns. Not to forget, in order to file tax returns in India or pay Income tax one needs to have a permanent account number or what we call it as a PAN Card.

A very good tax site from India that help non resident Indians (NRIs) in Indian taxations is:

There are many ways you can do tax planning in India on your income. You can save taxes under Sec 80cc up to a maximum of Rs1, 00,000 and your income can also be exempted from taxes on any interest on housing loans that you had to pay in the accounting year. You can avail of savings on interest to a maximum of Rs1, 50,000 each year.

For medical insurance, senior citizens can claim exemption of up to Rs20, 000 every year on their incomes. You can also take the help of several instruments like the ELSS and life insurance premium for claiming benefits in tax planning. For those who are working, they can claim a deduction on the amount deducted from their salary for payment towards provident fund. If a certain amount of money is deducted every year towards provident fund, then the balance amount of your income will be liable for taxation.

There are many taxes saving funds that you can also avail of for tax planning purposes like the Equity Linked Savings Scheme. You can invest in the Indian equity market with the help of an automated debit system monthly, but it has a three year lock in period. You can take away the money only after three years. It helps both in tax planning and saving as well as wealth creation. Since the money invested is again reinvested in the equity market, the value would depend on the index of the stock exchange after three years. You can gain a lot of money from your ELSS savings made three years back. Many of the tax funds also come with medical insurance benefits and your financial advisor or agent can show you the various ways taxes can be planned.

Among the most favored tax planning schemes among Indians is the life insurance plan. You should always opt for this plan as it has life benefits and tax benefits loaded into one. It is a sort of forced saving that can ensure a good life for your dependents in the event of something unfortunate happening to you.

Your income and lifestyle can be maintained with a good life insurance cover. If you already have enough life insurance policies for the future of your dependents as well as yours, then you should opt for the ULIP or the Unit Linked Insurance Plan and all payouts in life insurance policies are free from taxes.

You can also do tax planning with the help of the NSC or National Savings Certificate. By investing a bulk amount, you get back 60% more of it in 6 years and the total amount would be tax free. Fixed deposits are another preferred form of investment, but it is fast losing favor to the ELSS that has chances of higher payouts. You can invest amounts that you wouldn’t require immediately into Fixed Deposits. Both the education as well as home loans are exempt from taxes in India and only principal payments are exempted under sec80cc while for the interest on which you can claim deduction comes under sec24. You can get to know more if you interact with your tax planner.

To get more information on how to do your tax planning in India, you would be interested in visiting this new informative & resourceful website that offers some great tax services to global Indians living abroad, called: