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 The date to swap outdated currency has been extended upto 30th June, 2017.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.