1.1 Whether it is mandatory for a non-resident Indian to have a PAN?
Every person who is required to file a return of
income or intends to enter into an economic or financial transaction where
quoting of PAN is mandatory must have a PAN.
Transactions in which quoting of PAN is mandatory
are as follows:
1. Sale or purchase of a motor
vehicle or vehicle other than two wheeled vehicles.
2. Opening an account [other than a
time-deposit referred at point No. 7 and a Basic Savings Bank Deposit Account]
with a banking company or a co-operative bank
3. Opening of a demat account with a
depository, participant, custodian of securities or any other person with SEBI
4. Payment of an amount exceeding Rs.
50,000 to a Mutual Fund for purchase of its units
5. Payment of an amount exceeding Rs.
50,000 to a company or an institution for acquiring debentures or bonds issued
by it.
6. Deposits of cash exceeding Rs.
50,000 during any one day with a banking company or a co-operative bank.
7. A time deposit of amount exceeding
Rs. 50,000 or aggregating to more than Rs. 5 lakh during a financial year with
-
(i) a banking company or a
co-operative bank
(ii) a Post Office;
(iii) a Nidhi referred to in section 406 of
the Companies Act, 2013 or
(iv) a non-banking financial company which
holds a certificate of registration under section 45-IA of the Reserve Bank of
India Act, 1934 to hold or accept deposit from public.
8. Payment of an amount aggregating
to more than Rs. 50,000 in a financial year as life insurance premium to an
insurer
9. A contract for sale or purchase of
securities (other than shares) for amount exceeding Rs. 1 lakh per transaction
10. Sale or purchase, by any person, of
shares of a company not listed in a recognised stock exchange for amount
exceeding Rs. 1 lakh per transaction.
11. Sale or purchase of any immovable
property for an amount exceeding Rs. 10 lakh or valued by stamp valuation
authority referred to in section 50C of the Act at an amount exceeding ten lakh
rupees.
1.2 Application for allotment of PAN:
A non-resident Indian ('NRI') can apply for PAN
by submitting the Form No. 49A along with the requisite documents and
prescribed fees at the PAN application center of UTIITSL or NSDL. He can also
make an online application through the website of UTIITSL or NSDL.
1.3 Documents to be enclosed along with
PAN application Form
NRI is required to submit the copy of passport
(alongwith PAN application Form) as proof of identity. He is also required to
submit any of the following documents (alongwith PAN application Form)as proof
of address:
a) Copy of passport; or
b) Copy of the bank account statement in country
of residence; or
c) Copy of NRE bank account statement (showing at
least two transactions in last six months period and duly attested by Indian
Embassy/Consular office/high commission or Apostille or by the manager of the
bank in which the account is held. The applicant may be a joint holder).
1.4 Foreign address
A foreign address can be provided as residential
and office address by NRIs applicants, if they do not have any Indian address
of their own.
1.5 Fees
Fees for processing of PAN application shall
depend on the communication address provided by the applicant. Fee for
processing of PAN is Rs. 107 if the communication address is within India, and
Rs. 994 (Application fees +dispatch charges) if the communication address is
outside India.
1.6 Correction of Mistakes in PAN card
All guidelines as followed while filling fields
of name, address, signature, etc., of PAN application form should also be
followed while filling up form for 'Request for New PAN Card or/and Changes or
Correction in PAN Data".
There are two modes for filing this form: (1)
Offline mode, i.e., submitting the application at the PAN application center of
UTIITSL or NSDL, or (2) Making an online application through the website of
UTIITSL or NSDL. The applicant has to submit the application along with the
related documents and the prescribed fees.
1.7 Penalty for holding more than one PAN
card
A person cannot hold more than one PAN. A penalty
of Rs. 10,000shall be imposed under section 272B of the Income-tax Act, 1961
for having more than one PAN. If a person has been allotted more than one PAN
then he should immediately surrender the additional PAN card(s).
1.8 Penalty for non-compliance with
provisions relating to PAN
Section 272B provides for penalty in case of
default by the taxpayer in complying with the provisions relating to PAN, i.e.,
not obtaining PAN, even though he is liable to obtain PAN or knowingly quoting
incorrect PAN in any prescribed document in which PAN is to be quoted or
intimating incorrect PAN to the person deducing tax or person collecting tax.
Penalty of Rs. 10,000 under section 272B can be levied.
