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Month: January 2017

PAN Card Not Mandatory to Pay Tax by NRIs, OCIs & PIOs

PAN Card Not Mandatory to Pay Tax by NRIs, OCIs & PIOs

NRIs, PIOs and OCIs are battling to swap junked currency after demonetization. Now, Reserve Bank of India (RBI) has given a new lease to them. The date to swap outdated currency has been extended upto 30th June, 2017. By showing their valid identity & source proofs along with the letter/form of authority, they can easily exchange the defunct notes at any branch of RBI.

Amid such stringent campaigning against black money, the possibility of fraud has also become prominent. Particularly with the PAN card, it’s a walkover to extract someone’s banking details. Let’s comprehend when NRIs or other emigrants from India require this card first.

When does an NRI, PIO or OCI require PAN card?

PAN card is recommended for tax payers. Banking bodies also ask for it while opening an account, applying for credit card, investing money in Indian stock exchange and spending cash on stocks worth or more INR 50,000.

However, it’s a licence that allows tax payment but it’s not at all mandatory. Check below the guidelines under which the emigrants’ income is counted as taxable:

  • The income, like rental income, salary, income from the sale of securities (Mutual funds) or assets (property) owned in India originating from India and hence, is received from India is taxable for emigrants.
  • Income earned abroad but received in India is taxable.

PAN card is not mandatory for tax payment in India:

Many emigrants, who can’t be physically present to exchange, can authorize any known one for doing so in India. Here arises the possibility of default. Yes, it’s the hacking of personal information! Out of all proofs, PAN card is what can be its source. I want to inform here clearly that this card is not essentially required.

Since the Indian government has provided Form 60 as an alternative of PAN card, the tax payers can enclose the same while filing for tax or tax returns.

Where do NRIs get Form 60- An alternative to PAN card?

Many outsourcers, like S2NRI, are available 24X7 to outsource this facility. The applicant can contact them for consultancy regarding the same instead of applying for PAN card. They happily offer their advice for:

  • Where they can discover the form in person.
  • Spotting the official online place of Indian government (the website of Income Tax Department) where it is available.

NRIs should avoid PAN card as an identity proof for demonetization-Why?

However, this card is essential for hassle free tax payment. But, as said above, it is not compulsory.  And don’t flow with the crowd or fall prey to the rumours that showcases this card is mandatory. There are some official online businesses that do charge for the issuance of this card. But they are not official government website.

This card can let the hacker access sensitive personal information. If so happens, the authentic card holder can be plundered. In order to stay away from such hacking or stealing, go to the shelter of the form 60. It’s the best & secure alternative.

 

New Year Gift: Date Extended for Converting PIO into OCI

New Year Gift: Date Extended for Converting PIO into OCI

The year 2016 was full of upheavals. India announced surgical attack on corruption. The sudden announcement of banning currency notes of 500 and 1000 felt no ground under the feet of every Indian. These denominations configured 86% of the liquid asset in this economy. But this declamation on 8th November, 2016 ceased its liquidity. NRIs, PIOs and OCIs are no exceptions. They too fell under this grid.

Difference between PIO & OCI:

PIO or Person of Origin is the migrants who can travel across India an uncountable number of times. It permits hassle-free work and stay in this country if the person wants to live for more than 180 days. It was first introduced on 15 years ago in 2002. But in November 2014, this service was ceased.

OCI or Overseas Citizen of India card acts as the lifetime visa. It provides more benefits than that of PIO card. This scheme was launched in August, 2005.

Now, the Ministry of External Affairs (MEA) has decided to merge PIO to OCI card. This news came into spotlight in 2014. Thence, the government has twice fixed its date of conversion. Now, it would be third time when the date of merger has been extended.    

Good News for Migrants  

Now, the first phase of this surgical attack is getting over on 30th December 2016. The limit of 50 days for currency conversion from the local financial entities is ended. After such a big jolt, the prime minster has provided a reason to smile and cheer to emigrants.

Amid prevailing grudge after demonetization, the current Prime Minister Mr. Narendra Modi is trying to win their heart on the eve of New Year. The Centre has extended the date of converting PIO card into OCI card. It’s not the first time but the third time when extension is announced.

Erstwhile, it was 31st December 2016.

New Date for Registering Conversion of PIO card  

Wondering till when is it extended? The External Affairs Minister has set 30th June 2017 as the last date for registering merging of PIO card. The competent authorities, including FRRO, Bureau of Immigration, Posts and Indian Mission, have been following this announcement.

Is there any change in conversion process?

No, the conversion process shall remain the same. The applicants can visit the official government website. Alternatively, the outsourcers like S2NRI, can do it in short interval. After deploying the outsourcer, the applicant needs to scan and dispatch his/her credentials of identity and address. The rest of the work would be of the assigned entity. Within said period, the document is delivered to the applicant.

But beware of the fraudulent. Defaulters can use the needy as the source of doing fraud. So, scrutinize the authority before assigning for immigration related work.