Do Emigrants Need PAN Card for Paying Tax in India?

Do Emigrants Need PAN Card for Paying Tax in India?

Do you think PAN (Permanent Account Number) is the only access card to income tax payment system? However, it is but not the only access ticket to the tax payment gateway.

The Indian diaspora abroad has anywhere in the memory that permanent account number is mandatory. Although it is significant but is not mandatory to have PAN card to pay tax for NRIs.

Despite shifting living place to abroad, many emigrants are still connected to their roots. They frequently aboard the flight to India, however, the reasons can be multiple. One of the prominent causes of their visit is income from India.

NRIs must remind that the money received from the sources from India is slated as taxable. It includes:

  • Rental income from the property in India
  • Income by selling inherited property in India
  • Income received through securities & stock exchange
  • Income through mutual fund investment

How much useful is the PAN card to NRIs?

No doubt, this card makes the tax payment procedure a piece of pie. Perhaps, this is the prime reason of the widespread rumour that this card is mandatory to clear tax and claim return. Taking its advantage, some outsourcers have begun digging cash out of NRIs, PIOs and OCIs’ accounts.

This card enables the NRI bearer to:

  • Online transactions
  • Deposit cash
  • Transfer funds
  • Claim for tax return
  • Authenticating identity for exchanging junk-currency till 30th June 2017

How one can get this card?

Applying for this card in-person is a lengthy process that requires many fold authentications. This is why outsourcers cash in as their service charge. But there are some reliable and trustworthy outsourcers like S2NRI, who can fill the Form 49A on the behalf of applicant.

Documents to be enclosed with the PAN card application:

  • Form 49A
  • Scanned image of recent coloured photograph
  • Birth proofs or birth certificate
  • Non-Availability of Birth Certificate (NABC), if the birth certificate is absent.
  • Address proof
  • Designation & code of concerned assessing officer of I-T Department

What if the applicant has no address proof?

In such case, the applicant can submit any of these documents:

  • Telephone bill
  • Electricity bill
  • Credit card
  • Bank account statement
  • Passport
  • Voter ID
  • Driving licence

Is there any alternative to this card?

This card is a 10-digit unique alphanumeric number that Income Tax department allots. The government of India has introduced Form 60 as an alternate to this card. It simplifies the complications to file for income tax returns or other banking transactions to the NRIs.

Form 60 is a self-declaration form that is available at the associated bank and post office in India. Even, the applicant can download it from the bank’s website. It states that the applicant does not possess PAN card rather he/she is providing his/her all authentic details in the form.

The applicant must provide:

  • Address details
  • Status of Income tax assessment
  • Reason of not having PAN card