Indian residents residing out of India i.e. NRI (Non-Resident of India) should have a PAN (Permanent Account Number) card. It contains a unique alphanumeric number. PAN card is required to file for a tax return in India but that doesn’t necessarily means that those who have a PAN card must file for tax. PAN card is important for NRIs when they have to remit money to India or it is helpful for the NRI people in case of money exchange/ stock exchange and so on.
It is also necessary in order to invest in shares; a few months ago the SEBI came up new law for the people who invest in the share market will not be able to trade with any of the depository member or a broker.
Two main reasons to apply for PAN card:
- For investing in India, NRIs need a PAN card to file tax return for the incomes earned in India
- For financial transactions above 50,000 INR
How to apply for an NRI PAN card?
Nowadays, applying for pan card have become much easier compared to previous years with the help of online application portability. NRIs can apply with the help of a passport as a residence and identity proof. If they find it difficult to fill the applications by themselves and are missing an important document, there are always NRI services which help NRIs fulfill their required need. Other than passport there are many things that act as an ID proof while applying such as utility bill, ration card or legal driving licence.
You can apply easily just by downloading the application from online, then fill the application by using a black pen without any overwriting and attach the relevant documents as required with the filled PAN application.
You have to forward the application to the service agency in India, so that they can forward the application to the Income Tax department. Further, it will be processed by the IT department and the laminated card will be sent to your own address in 30-45 days.