PAN is a UNIQUE 10-digit alpha numeric number allotted by the Income Tax
Department (ITD). The ITD has duly appointed and authorized below 2 service
providers for processing, issuance and printing of PAN cards:-
1. UTI Infrastructure
Technology And Services Limited (UTIITSL),
2. NSDL e-Governance
Infrastructure Limited (NSDL e-Gov)
In order to obtain a PAN in India, one needs to fill and submit the
requisite application depending upon citizenship. The PAN allotted to a person
shall be PERMANENT and will not change with update of details (i.e. name,
address, etc.) of the PAN holder or change of PAN Jurisdictional Officer.
Further, PAN shall be issued and provided to the person in 2 different forms:-
- Laminated PAN card (a physical copy delivered at
the address), and
- e-PAN card (shared on the registered email ID)
Transactions where PAN is
to be quoted
PAN is required for
executing many transactions in India. Below are some of the transactions where
quoting of PAN is mandatory -
- For opening of Bank account
- Opening of Demat Account with a depository
- For investing in securities i.e. Initial Public Offers, Portfolio
Investment Schemes and Portfolio Management Schemes, Mutual Funds
- For Sale or purchase of immovable property
- Filing of Income Tax Return, payment of tax
- ALL other transactions as specified in Rule 114B. Please
click on link to access the rules: //incometaxindia.gov.in/pages/rules/income-tax-rules-1962.aspx?key=114b&key=114b
Documents
to be provided as Identity and Address proof
Applicant is required to provide any of the below documents,
basis his/ her citizenship and delivery of PAN:
|
Particulars
|
Indian Citizen
|
Foreign Citizen
|
|
delivery of PAN within India
|
delivery of PAN outside India
|
delivery of PAN within India
|
delivery of PAN outside India
|
|
Identity proof
|
Ø Aadhaar card (mandatory)
|
Ø Aadhaar card;
Ø Elector’s card;
Ø Passport.
|
Ø Passport
|
Ø Passport
|
|
Address proof
|
Ø Aadhaar card;
Ø Elector’s card;
Ø Passport;
Ø Bank statement (of recent month)
|
Ø NRE/ Foreign Bank account statement
(of recent month)
|
Ø Aadhaar Card (if available)
Ø NRO/ NRE Bank account statement reflecting Indian Address (of recent
month)
Ø Appoint Representative Assessee and take delivery of PAN card at his/
her address
|
Ø OCI;
Ø NRE/ Foreign Bank account statement (of recent month)
|
Why NRI should hold PAN?
1.
It is advisable for NRIs to hold
PAN in India and to quote the same with the payer of income in order to avoid
deduction of tax at higher of the following rates:-
·
20%; or
·
Rates specified in relevant
provision of the Act; or
·
Rates in force [i.e. rates mentioned in the Finance Act or rates as per
DTAA (Double Taxation Avoidance Agreement)]
2.
Further, one can claim refund of
the tax deducted by the payer by filing their Return of Income (ROI) in India
for the relevant Financial Year (FY). To file ROI in India, PAN of the
individual is to be registered on the Income Tax e-filing website.
3.
Alternatively, there is relaxation
provided by the Income Tax Department wherein an individual can provide details
to payer of income and avoid higher deduction of tax.
Why PAN
becomes Inoperative?
PAN status of NRI is showing as inoperative on account of
non-linking of Aadhaar with PAN. However, as you may be aware, NRIs are not required to
obtain Aadhaar and/or link it with their PAN. Accordingly, it is important to inform your NRI
status to the Tax Department
What causes
Restricted Refund issue on e-filing Portal?
You may note the
Restricted Refund issue arises due to the Name mismatch between PAN and Bak
records. It is advisable to synchronize all the documents (such as passport,
bank statement, PAN card etc.) i.e., the name should match on all documents.
We provide services for PAN Application, PAN
correction/ Duplicate. For any assistance / information on PAN related matters,
you may write to: panhelpdesk@gpkapadia.com
- Updated 09/2023