Why PAN Card is essential for NRIs
PAN Card is a 10-digit alphanumeric number issued by Income Tax Authority of India. PAN is now compulsory for the majority of high-value financial transactions covering the opening of Bank Account and buying and selling of property in India.
PAN Card is now important for:
1) Filing of Income Tax in India
2) Buying and selling of property in India
3) Purchase of a car in India
4) Carrying on Financial Transactions in India
5) Deposit of more than Rs. 50K in Indian bank account
6) Claiming back returns of TDS that has been deducted
7) Buying Mutual funds or shares of value exceeding One Lakh rupees
8) Opening of Bank Demat account for holding the stocks and securities
Generally, many NRIs says that they want to have a Permanent Account Number card but haven’t been able to get one yet due to the following reasons:
- Lack of knowledge on how to apply
- They don’t have an address in India
- They don’t have sufficient time when they come to India
- Pure Laziness
It is not difficult to apply for a new PAN Card, even for NRIs. They must be aware that it is presently a cognizable offence to have more than one Permanent Account Number. In case if an NRI has an old Permanent Account Number that has been misplaced or lost or they have a vague thought of having one but are not sure of it, then it is necessary to authenticate from the Income Tax Department to apply for a fresh PAN Card.
Yes, having a PAN Card is essential and equally important is to keep the person details updated in the Income Tax Records. Those NRIs who left India years ago and probably changed houses, cities or countries since then due to which they tend to neglect or aren’t aware entirely that the address and other contact information in the Income Tax Authority records should also be updated.
Earlier, most of the people didn’t use to pay much attention to the details specified in the Permanent Account Number card, but presently, it is important for NRIs to get the details corrected if:
- The spelling of their name or full name is different in their passport or other regulatory ids and their Card
- The Pan Card, for whatever purpose, has been issued in their first name only
- They have legally changed their full name or spelling of their name
- There is any mismatch in the Date of Birth stated in their documents, such as, passport, or school and birth certificates
- The contact details or address specified while obtaining the PAN Card and present address and contact details are different
It is not difficult to get a PAN Card, especially now that Income Tax authorities have granted the facility to NRIs to apply and obtain Card on their foreign address too.