So What is a PAN Card & is it compulsory for NRIs?
The abbreviated “PAN” stands for Permanent Account Number. It is a ten-digit code that has numbers and letters. Everyone that pays taxes in India is required to have one. It is given by the Income Tax Department. All Indian Citizens need to have a PAN to get into the Indian Stock Market.
NRIs (Non Resident Indian), PIOs (Person of Indian Origin), and OCIs (Overseas Citizen of India), sometimes get confused as to if they need a PAN card when they want to get into the Indian Stock Market. The answer is YES. All the above DO need to have a PAN to enter the Indian Stock Market as required by the SEBI. Again, a “PAN” is a Permanent Account Number. It remains the same your whole life; it doesn’t change if there is a change in your contact data or anything. If you were to lose your PAN card, a copy would be sent to you and your number remains the same.
An NRI has the opportunity to both apply for a PAN card and pay for it online. The waiting time for an NRI is, on an average, 25-30 days. The Income Tax Department has a rule that if you do not have a PAN, then you are to pay a fine of Rs.10000.
If you lose your PAN, you can apply for a copy using your PAN number. Only the Indians that receive their income in India have to pay taxes. It is recommended that you NRIs pay taxes to India too because even you have to have a PAN. You can apply for a PAN card via pancardonline.com where a broker will have a PAN card made for you by the Income Tax Department.
You need a PAN card.
You need a PAN card for many reasons. It is required to recite your PAN on a return of income, all encounters with any income tax authority for anything that you owe to the Income Tax Department. Also, it is required to recite your PAN on all documents that have to do with and transactions you might have economically or financially.
Getting a new card
The card that you already have will still continue valid if you want to have a new card. Most want the new plastic cards that are offered. If you are one that has a PAN but not a PAN card, then you can ask the Income Tax Department to provide you with one or if you want a “smart card”, then you need to apply for one.
Most applications that are received by the Income Tax Department will still receive the old card, but you can ask for a new one and pay the price of Rs.60. Eventually everyone will be given the new plastic PAN cards to start.
You can track your PAN card status online…
Within the next two months, there will be a tracking system on the web where everyone can go and enter their data to see the status of their PAN cards.
We collect all the applications and send them to the Income Tax Department where they allot all of the numbers and provide cards. The new cards have hologram and security features. We are setting up the new system for tracking all movements of the application and cards until the PAN is received by the applicant. All future applicants will have the opportunity to use this system.