Connecting Businesses with Opportunities in India
Connecting Businesses with Opportunities in India

PAN

Submitted by Shashi Mohan on Tue, 02/09/2016 - 10:45am.

Currently the process to get a PAN in India is semi-automated. An online application can be made by using the link https://tin.tin.nsdl.com/pan/form49AA.html. Please be careful in mentioning particulars exactly same as per your identity proof, address proof etc.

Manual Form 49AA can also be downloaded from https://www.tin-nsdl.com/download/pan/form49aa.pdf at NSDL Facilitation Centre available across India. Please check address at https://www.tin-nsdl.com/tin-facilities.php

Fee for processing PAN Application is Rs. 107 including taxes. In case the communication address is outside India, processing fee is Rs. 989 (including tax and dispatch charges) and in such case PAN cards will be dispatched outside India.

The requisite fee can be paid through a Demand Draft of an Indian Bank on through Credit Card, Debit Card. In case you provide ‘office address or residential address’ in India, the payment can also be done through Net Banking.

On confirmation of the application, an acknowledgement number (unique 15-digit number) will be generated. Take a print of the acknowledgement receipt, paste 2 recent, color photographs and sign exactly in the given box, just below. Photographs are required only in case of Individuals.

Non Resident Indians can use their OCI/PIO card or a NRI bank account as their address proof abroad. A person holding a foreign passport is required to get his/her documents attested by “Apostille” or Indian Embassy or High Commission or Consulate in that country

In case of any other entity, Foreign Organisation, their Certificate of Registration needs to be duly attested by “Apostille” or Indian Embassy or High Commission or Consulate in that country

Once you are through, please put the following documents in an envelope:
  • Acknowledgement receipt signed and affixed with photograph
  • Demand Draft (Original) or payment acknowledgement receipt
  • Proof of Identity and Proof of address

Subscribe the envelop with “APPLICATION FOR PAN…….ACKNOWLEDGEMENT NUMBER” and send through speed post addressed at “Income Tax PAN Services Unit, NSDL e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016”

Please ensure that the above documents are received at the above within 15 days from the date of online application.

The process would complete in approx 2 weeks time. The acknowledgement number can be used to track the status of application at https://tin.tin.nsdl.com/pantan/StatusTrack.html.

For more details on PAN card for NRIs and foreign companies that want to do business in India, click here.

Submitted by Shashi Mohan on Tue, 11/17/2015 - 10:02pm.

Background

PAN Card or Permanent Account Number is a MUST for both a Non-Resident Indian (NRI) and a Non-Resident organization in case they receive income and need to file income tax return in India. Indian Income Tax Authority keeps a track and consolidates financial transactions through PAN and it is regarded as a Tax Registration Number in India. Legislation has accordingly mandated to quote PAN at several financial transactions. As a practice, requirement of PAN is also considered mandatory in non-financial activities such as opening a Bank Account or becoming a “Director” (getting Director Identification Number) in a company registered in India.

Now days, it works as an Identity card in India. Similar to an EIN or Social Security Number in USA, a PAN in India is a 10 digit alphanumeric number issued by Income Tax Department.  It’s a unique number issued for lifetime. In certain cases, it can also be surrendered or cancelled under a valid reason. Having more than one PAN is not permitted and one can be penalized for having more than 1 PAN.

What makes PAN card a Mandatory requirement?

There are specific transactions which cannot be carried out unless valid Pan is presented. Relevant authorities simply deny such transactions in absence of a PAN. Below are a few examples:

  • Opening a Bank Account, getting a Credit Card, apply for a Loan
  • Getting a Digital Signature of obtaining a Director Identification Number (for being appointed as a Director in Indian Companies).
  • Insurance Payment, Other Financial transactions > INR 50,000
  • Transaction in Property, Vehicles >INR 500,000
  • Investment in Shares, Mutual  Fund
  • Utility connections (Telephone, Electricity, Gas etc)
  • Domestic registrations such as Service Tax, Value Added Tax, Import Export Code

NRIs and Foreign Companies that are doing business in India also need a PAN

Every recipient of income from India needs to furnish PAN. It is also required that in the absence of PAN, the tax withholding rate will be higher (20%) even if a lower rate is prescribed in Double Taxation Avoidance Agreement (DTAA) with that particular country. The following are the sample cases in which PAN is required by NRIs and foreign companies doing business in India.

  • Carry out financial or investment related transactions
  • Employment or rendering of professional services
  • Trading in Shares through a Depository or even a Broker
  • Invest in Mutual Funds
  • Purchase Land (not Trading) or some property in India
  • Being appointed as a Director in Indian Companies
  • Being appointed as a “Authorised Representative” in a Liaison Office, Branch Office, Project Office