We Assist NRIs, OCIs & PIOs and Foreign Companies to get a PAN Number from India.!! : 1 We Assist NRIs, OCIs & PIOs and Foreign Companies to get a PAN Number from India .!! ATTENTION: "NRIs, PIOs and Companies" PAN Number is now COMPULSORY.! What is a PAN Number? It is a 10 alphanumeric number known as Permanent Account Number (PAN) , issued in the form of a laminated card by the Income Tax Department of India. Do I pay taxes if I have a PAN? Having an PAN doesn't mean that you have to pay taxes. You only pay tax if you generate income from/in India. But, it is always recommended to file 'ZERO' taxes even if you don't have any tax liability. PAN CARD for NRIs, PIOs & OCIs: 2 PAN CARD for NRIs, PIOs & OCIs Synopsis: What is a PAN Number? Why NRIs need PAN Card? NRI PAN Card FAQs. How NRIs can apply for a PAN Card in India Online? Documents required to get a PAN Card from India. Procedure to be adopted by a NRI to acquire PAN? Permanent Account Number: 3 Permanent Account Number A Permanent Account Number Card or a PAN Card is perhaps one of the most important card/document that one needs today for various financial or economic transactions. But many people wonder what is a PAN card. Permanent Account Number Card or PAN Card as its widely known refers to a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax (I-T) Department in India. It has been made compulsory since 2005, to have a PAN number for all those who file their income tax returns. As per the I-T Department, we have to quote the PAN on return of income as also on all correspondence with any income tax authority in the country. Slide 4: 4 Moreover, it is now compulsory to quote PAN in all documents pertaining to financial transactions as notified from time to time by the Central Board of Direct Taxes (CBDT). Some of these financial transactions include sale and purchase of immovable property or motor vehicle, or paying the hotels and restaurants in cash whose amount exceeds a certain limit, or in connection with travel to any foreign country. In fact we have to also mention PAN for obtaining a telephone or cellular telephone connection! Likewise, PAN has to be mentioned for making a time deposit exceeding Rs.50, 000/- with a Bank or Post Office or for depositing cash of Rs.50, 000/- or more in a Bank. Slide 5: 5 The following points need to be kept in mind if you possess or want a PAN: It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document. Obtaining or possessing more than one PAN is against the law. It is compulsory to quote PAN on return of income All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person. The New Superior PAN Card: 6 The New Superior PAN Card Following our Finance Minister’s order, the I-T Department has taken out a new PAN Card since 2007. It will carry a coloured photo-image in case of individual applicants. It is a superior card. It is tamper proof and has built-in security features such as a hologram, fingerprints of the applicants and UV line. These security features will thwart forgery of PAN cards as every human has different characteristics. For providing upgraded PAN services, UTI Investor Services Ltd. (UTIISL) has been authorised to collect Rs. 60/- per application with the new simplified PAN form costing Rs. 5/-. The UTIISL, for this purpose, has set up at least one counter in each of the 501 cities as requested by the Income Tax department. Most of these counters for PAN have been set up at I-T offices. In big cities like Delhi, Mumbai, Chennai, Bangalore etc. however, UTIISL has set up more counters. Service counters have also been set up at 50 branches of UTI MF to handle PAN card customers. We do know that people are weary of giving out their personal information especially to an unknown company, even if it is authorised by the Government. The applicants and PAN card holders need not worry about giving such details to UTIISL as all the information related to your PAN card remains with the government and UTIISL cannot use it for any other purpose. Slide 7: 7 What happens to existent PAN Card holders? We are sure this one question must be bothering all the existent PAN Card holders. What happens to those people who have the old PAN Card. Do they also need to submit their cards and get a new one? The answer to this is NO. The existing PAN cards would continue to be valid. It is OPTIONAL for these PAN cardholders to obtain the new plastic cards. However, the Government / I-T Department would definitely persuade the old card holders to submit their old cards and get the new one as it would prevent the crime of duplication and forgery. I do not have the card though have received my PAN. A mistake that does not happen often, nevertheless anyone who has already received a PAN but not the card, can either ask the I-T Department to issue the new card or they can opt for a smart card by applying for the same. I had applied for a PAN Card some time back. Will I get the old or the new card? The kind of card you would get depends on WHEN you applied for it. The applications, received by the I-T department till 30 June 2003, would be issued the old card. However, if an individual wishes, she or he can get the new card on payment of Rs.60/-. All applications made and received, by the I-T Department, from 1 July 2003 onwards, will be handled by UTI-ISL and these applicants will be given the new PAN cards. PAN Card - Frequently Asked Questions: 8 PAN Card - Frequently Asked Questions 1. What is PAN? Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by an Assessing Officer of the Income Tax (I-T) Department. A typical PAN would be, for e.g., ABCDE1234F. 2. Why is it necessary to have PAN? It is necessary to have PAN because as per the rules of I-T Department, it is mandatory to quote PAN on all correspondence with any income tax authority. It is good to mention here that since 1 January 2005, it has become mandatory to quote PAN on challans for any payment due to the I-T Department. Also, as stated above, it is now compulsory to quote PAN in all documents pertaining to financial transactions notified from time to time by the Central Board of Direct Taxes (CBDT). Some of these financial transactions include sale and purchase of immovable property or motor vehicle, or paying the hotels and restaurants in cash whose amount exceeds a certain limit, or in connection with travel to any foreign country. In fact PAN has to be mentioned for obtaining a telephone or cellular telephone connection! Likewise, PAN has to be quoted for making a time deposit exceeding Rs.50, 000/- with a Bank or Post Office or for depositing cash of Rs.50, 000/- or more in a Bank. Slide 9: 9 3. How does Income Tax Department ensure that PAN is quoted on transactions mentioned above? It is the responsibility of anyone and everyone entering into any kind of financial and/or economic transactions as notified by the CBDT, to quote PAN in the related documents. 4. Is it compulsory to quote PAN on return of income? Yes, it is compulsory to quote PAN on return of income. 5. How will these authorities verify PAN? The authorities verify PAN from the I-T Department’s website with the help of the facility provided. 6. Who must have a PAN? According to the I-T Department, it is compulsory for the following people to have PAN: All taxpayers (including those who furnish return of income on behalf of others) must obtain PAN. Any person, who intends to enter into financial transaction such that its document requires quoting PAN, must also obtain PAN. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person. Slide 10: 10 7. Can a person obtain or use more than one PAN? There have been cases where a person ahs been using two PAN for different financial transactions, but it must be kept in mind that obtaining or possessing more than one PAN is against the law. 8. Where to apply for PAN? All cities and towns having an I-T office have at least one IT PAN Service Centre. Such centres are set up and managed by UTIISL by order of the I-T Department. It has also authorised the National Securities Depository Ltd (NDSL) to dispense PAN services from Taxpayer Identification Number (TIN) Facilitation Centres. NRIs may seek the assistance of private brokers who will guide and assist you in getting a NRI PAN Card in any part of the world. These brokers will help you in filling the PAN application form and will also submit the same as your representative in India. PAN assistance brokers may be sought at: www.pancardnri.com www.pancard.co.uk www.pancardonline.com You can also apply through these brokers, by contacting them about PAN Card assistance for Non Resident Indians (NRIs), Persons of Indian Origin (PIOs) and Overseas Citizen of India (OCIs): http://www.pancardnri.com/apply-for-pan-card-online.html Slide 11: 11 9. How to apply for a PAN? Can an application for PAN be made on plain paper? No, PAN application cannot be made on any paper. It has to be made ONLY on Form 49A. A PAN application (Form 49A) can be downloaded from the website of Income Tax department or UTIISL or you can download it here: http://www.nripan.com/nri-pan-application.html OR http://nriinvestindia.com/nri-apply-pan-card-online.html One needs to pay Rs.5/- in cash to the I-T office when you submit the downloaded form. The form is also available at IT PAN Service centers and TIN Facilitation centres. 10. Can an application for PAN be made in Form 49A obtained from anywhere? Yes, PAN applications (Form 49A) can be obtained from various other sources, apart from IT PAN Service Centres. It can be downloaded from the website of Income Tax department or UTIISL or NSDL. The application can also be made on form printed by local printers or a photocopy of downloaded or printed form. 11. Can an application for PAN be made through Internet? Yes, application for PAN can be made through Internet, as also can requests for changes or correction in PAN data or request for new PAN card (for an existing PAN) be made through Internet. For more details visit: www.tin-nsdl.com 12. How do I get a PAN allotted quickly (TATKAL)? You can get a TATKAL PAN if the application is submitted through Internet and the payment for the same has been made through a ‘nominated’ credit card. Slide 12: 12 13. What documents are to be submitted along with the application form? The following documents are to be submitted with Form 49A: Individual applicants will have to affix one recent stamp size (3.5 cm x 2.5 cm) photograph on the form Any one document listed in Rule 114 must be submitted as proof of identity and address Designation and Code of the concerned Assessing Officer of the Income Tax Department will have to be mentioned in the form. 14. Which documents will serve as proof of identity in case of individual applicants, including minors and Hindu Undivided Family (HUF) applicants? In case of individual applicants, a copy of any of the following document has to be submitted: School leaving certificate; matriculation certificate; a degree from a recognized educational institution; depository account; credit card; bank account; water bill; ration card; property tax assessment order; passport; voter identity card; driving license; certificate of identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted Officer. In case the PAN applicant is a minor, any of above documents of any of the parent or guardian of such minor shall serve as proof of Identity. In case PAN application is made on behalf of a HUF, any of above documents of the Karta of the HUF will serve as proof of Identity. Slide 13: 13 15. What is proof of ‘Address’ for Individual applicants, including minors and HUF applicants? In case of individual applicants, a copy of any of the following document has to be submitted as proof of ‘address’: Electricity bill; telephone bill; depository account; credit card; bank account; ration card; employer certificate; passport; voter identity card; property tax assessment order; driving license; rent receipt; certificate of address signed by a MP / MLA / Municipal Councillor / Gazetted Officer. In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of Address. In case PAN application is made on behalf of a HUF, any of above documents of the Karta of the HUF will serve as proof of Address. Slide 14: 14 16. What documents will serve as proof of Identity and Address for other applicants? A copy of any of the following documents will serve as proof of identity and address for other applicants: Certificate of Registration issued by the Registrar of Companies; Copy of Certificate of Registration issued by the Registrar of Firms; Copy of Partnership Deed or Copy of Trust deed or Copy of Certificate of Registration Number issued by Charity Commissioner; Copy of Agreement or Copy of Certificate of Registration Number issued by Charity Commissioner or Registrar of Co-operative Society or any other Competent Authority; any other document originating from any Central or State Government Department establishing Identity and Address of such person. 17. How to find ‘Assessing Officer code’? You may find the Assessing Officer code from the I-T Office where you submit your return of income. Applicants who have never filed return of income may find out Assessing Officer code with the help of either IT PAN Service Center or TIN Facilitation Center or jurisdictional Income Tax Office. Slide 15: 15 18. Is a photograph compulsory for making an application for PAN? Yes, a photograph is compulsory ONLY in case of ‘Individual’ applicants. 19. What is the procedure for applicants who cannot sign? Applicants who cannot sign can affix their Left Hand Thumb impression of the applicant on either Form 49A or ‘Request For New PAN Card Or/ And Changes In PAN Data’ at the place meant for signatures and get attested by a Magistrate or a Notary Public or a Gazetted Officer, with their official seal and stamp. 20. Is father’s name compulsory for female (including married/divorced/widow) applicants? Yes father’s name is compulsory for female applicants irrespective of their marital status. In fact only father’s name is required to be filled in the PAN application (Form 49A). 21. Is it compulsory to mention telephone numbers on Form 49A? No. Mentioning the telephone number is not compulsory, but its better to provide one as it helps in faster communication. Slide 16: 16 22. Who can apply on behalf of non-resident, minor, lunatic, idiot, and court of wards? Section 160 of IT Act, 1961 provides for a Representative Assessee who will make an application for PAN on behalf of a non-resident, a minor, lunatic, idiot, and court of wards and such other persons. 23. I had applied to the department but I do not know my PAN? Such people may contact the Aaykar Sampark Kendra (ASK) at 0124-2438000 (or 95124-2438000 from NCR). You may also visit the www.incometaxindia.gov.in and go to ‘Know your PAN’. 24. Are there any charges to be paid at IT PAN Service Centers or TIN Facilitation Centers? Yes there are charges to be paid at the above-mentioned centres. UTIISL and NSDL have been authorized to collect Rs.60 + Service Tax as applicable, per PAN application and this includes cost of a tamper proof PAN card. This amount will have to be paid in cash. 25. Do you need to apply for a PAN when you move or transfer from one city to another? No. You do not need to apply for PAN in case of change of address. Permanent Account Number (PAN), as the name suggests, is a permanent number and does not change during lifetime of PAN holder. However, change of address is to be intimidated to the nearest IT PAN Service Centre or TIN Facilitation Centre as the database needs to be updated. These requests will have to be made in the form ‘Request For New PAN Card Or/And Changes In PAN Data’. Also, change of address might change the Assessing Officer. Slide 17: 17 26. Will the existing PAN cards issued by the Department remain valid in view of the new cards being allotted? Yes, the existing PAN cards will be valid, and persons having the same need not apply for a new one. However, the I-T Department might persuade such possessors to surrender their old card and get the new one, as the latter would prevent the crime of duplication and forgery. 27. Income Tax Department has issued me a PAN card; can I obtain a new tamper proof PAN card? Yes. Persons already having a PAN Card can apply for the new tamper proof card. This requires surrendering the old card and filling up the ‘Request For New PAN Card Or/ And Changes In PAN Data’ form, in which existing PAN will have to be indicated. The form and the card are to be handed over to the IT PAN Service Center or TIN Facilitation Centre. The payment of Rs.60 + Service Tax as applicable, will also have to be made. Slide 18: 18 28. I had applied for PAN and received PAN number but have not received the PAN Card? Such people may apply in the form ‘Request For New PAN Card Or/ And Changes In PAN Data’ at any of the nearest IT PAN Service Center or TIN Facilitation Center quoting your PAN. 29. How will the new PAN card be delivered to me? Your card will be delivered by the UTIISL or NSDL, as the case may be, at the address provided by you on the form. 30. I want to pay taxes today but I do not have a PAN? It generally takes about 15 days to get a new PAN allotted. However, PAN can be obtained quicker (TATKAL PAN) in around 5 days if application is made through the Internet and the processing fee paid through a ‘nominated’ credit card. It is advisable to initiate action for obtaining PAN well in time. How can a non-resident get a PAN Card from abroad?: 19 How can a non-resident get a PAN Card from abroad? Non-residents (be it Non-Resident Indians, Persons of Indian Origin, or Overseas Citizen of India) often ask the question: Can we get a PAN Card sitting here (read outside India) or can it be made only by coming to India? Well, here’s the good news for all of you. You can get a PAN Card without coming over! All you need to do is get in touch with a private broker who will guide and assist you in not only filling up the form but will also submit it to the respective office as your representative in India. If you do not know where/how to contact a PAN Assistance broker, just click on any of the links below: www.nripan.com www.pancardnri.com www.pancardonline.com You can also contact brokers on: http://www.pancardnri.com/apply-for-pan-card-online.html What is the procedure for a non-resident to get PAN Cards?: 20 What is the procedure for a non-resident to get PAN Cards? We often get queries regarding the procedure for getting a PAN Card made. At the outset, we have to know that applications for PAN Card can be made only in Form 49A as provided by the Income Tax (I-T) Department. But this does not imply that one needs to go to the I-T Department to get the form. These forms can be downloaded from the Internet also. The links for downloading Form 49A are provided below: http://www.nripan.com/nri-pan-application.html or http://nriinvestindia.com/nri-apply-pan-card-online.html While submitting these downloaded forms, you will have to pay Rs.5/- in cash to the I-T office. You can also get Form 49A from UTIISL or NSDL. All cities and towns, all over India, are now enriched with at least one IT PAN Service Centre. Such centres have been set up and are managed by UTIISL by order of the I-T Department. The I-T Department has also authorised National Securities Depository Ltd. (NSDL) to dispense PAN Services from Taxpayer Identification Number (TIN) Facilitation Centres. Can non-residents apply for a PAN Card online?: 21 Can non-residents apply for a PAN Card online? Non-residents (Non-resident Indians, Persons of Indian Origin, Overseas Citizen of India) CAN apply for a PAN Card online. While its true that the application can only be made in Form 49A, one need not go to the IT office for the same. You can apply for a PAN Card from any part of the world. All you need is a computer with an Internet connection! Form 49A can be downloaded from the I-T Department’s official website or from any of the links provided: http://www.nripan.com/nri-pan-application.html or http://nriinvestindia.com/nri-apply-pan-card-online.html You can also get a TATKAL PAN if the application for the same is made through the Internet and the payment for the same is made through a ‘nominated’ credit card. For more details visit: www.nriinvestindia.com What is the procedure to be adopted by a non-resident to acquire PAN?: 22 What is the procedure to be adopted by a non-resident to acquire PAN? By order of the Income Tax Department, anyone and everyone who engages in any form of financial transaction must have a Permanent Account Number (PAN). Non-residents too require PAN if they wish to engage in any financial activity. Applications for PAN can be made only in Form 49A, but this form is now available everywhere including the Internet ( http://www.nripan.com/nri-pan-application.html or http://nriinvestindia.com/nri-apply-pan-card-online.html ). While submitting downloaded forms, one needs to pay Rs.5/- in cash to the I-T Office. This facility implies that non-residents can apply for PAN while residing outside India. However, if non-residents are in India and want to get PAN while their stay here, all they have to do is visit any UTIISL or NSDL centre and get a form from there. Form 49A is now also available with your local printer, and applications can also be made in the photocopy of Form 49A. While submitting Form 49A, the following documents need to be submitted: Individual applicants will have to affix one recent stamp size (3.5 cm x 2.5 cm) photograph on the form Any one document listed in Rule 114 must be submitted as proof of identity and address Designation and Code of the concerned Assessing Officer of the Income Tax Department will have to be mentioned in the form What is the easiest way for a NRI to get a PAN?: 23 What is the easiest way for a NRI to get a PAN? The easiest way to get a Indian PAN (permanent assessment number) is to apply for the same online and make the payment through a ‘nominated’ credit card. You will get a TATKAL PAN. Another hassle-free way is to contact a PAN Assistance Broker who will help you fill up the application form and will submit it on your behalf as your representative in India. PAN Assistance Brokers may be sought at: www.nripan.com , www.pancardnri.com , www.pancardonline.com or at http://www.pancardnri.com/apply-for-pan-card-online.html . Why NRIs need PAN?: 24 Why NRIs need PAN? Do you wish to invest in the third largest Asian market? Are you planning to have any kind of financial transaction in an economy whose GDP is close to 9%? If yes, then you need a Permanent Account Number (PAN) as per the new rules of both the Income Tax (I-T) Department and the Securities and Exchange Board of India (SEBI). You may be a Resident Indian, a RNOR, or a non-resident (NRI, PIO or OCI), but to have any fiscal operation in India, especially if you plan to invest in the Indian Share Market, you need to get a PAN. Nowadays, a typical PAN Card would look like a laminated ID card having your personal details and your unique ten digit alphanumeric code. While it takes a minimum of twenty and a maximum of thirty days for the authorities to issue you your PAN, you can get a TATKAL PAN by applying for the same online and paying for the same through a nominated credit card, again online. Please note that applications (online or offline) can be made ONLY on Form 49A, and irrespective of any change in your personal details, your PAN remains the same. Remember it’s a permanent number. Having more than one PAN is an offence. Similarly, not having a PAN and still carrying out monetary/business deals is also an offence and you are accountable to pay Rs.10000 as fine. Our clients often have a doubt: Do I need to pay tax since I have a PAN? No. Just because you have a PAN you need not pay tax, the contrary being true. In India, only only those whose income is generated from/within Indian Territory pay tax. Nonetheless, you can pay tax as it shows your credibility to the Government. So all you have to do is fill up Form 49A, either online or offline (you may get hold of a broker in case you decide to go in for the latter), pay the ‘fees’, and voila! You get your PAN and are ready for any financial transaction. So go ahead and make money!