Do NRI Need PAN Card?

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“Can NRI have PAN card?”

Yes, Non-Resident Indians (NRIs) need a Permanent Account Number (PAN) card in India for specific financial transactions. 

Do NRIs Need PAN Card?

Here are the primary reasons and scenarios where an NRI would require a PAN card:

• NRIs must have a PAN card to file income tax returns in India if they have taxable income originating from India. This could include income from sources such as salaries, rental income, capital gains from investments, or interest on savings accounts and fixed deposits.

• PAN is necessary to pay taxes on the income earned in India and to comply with the regulations of the Indian Income Tax Department.

• NRIs investing in the Indian stock market through the Portfolio Investment Scheme (PIS) must have a PAN card. This is a mandate by the Securities and Exchange Board of India (SEBI).

• For mutual fund investments, NRIs need to provide their PAN card details as part of the Know Your Customer (KYC) compliance process. PAN is required for transactions exceeding Rs. 50,000 in securities, bonds, and other financial instruments.

• Opening a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank account in India necessitates a PAN card. These accounts are used by NRIs to manage their earnings and savings in India.

• Fixed deposits in Indian banks, where interest earned is subject to tax deductions at source (TDS), require a PAN card for TDS to be deducted at applicable rates.

• NRIs buying or selling immovable property in India need a PAN card for registration of the property and for any related financial transactions.

• TDS is applicable on the sale of property, and the PAN card helps in ensuring proper tax compliance. Transactions above a certain monetary threshold, like buying a car or jewelry, require a PAN card for transparency and tracking.

Is PAN Card Mandatory for NRI?

Regardless of income level, NRIs who make investments, do financial business in India, or have taxable income in India are required to have PANs.

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Do NRI need PAN Card? Yes, Non-Resident Indians (NRIs) are required to have a Permanent Account Number (PAN) in India if they engage in financial transactions that require PAN under Indian tax laws.

PAN is a unique identification number issued by the Income Tax Department of India.

However, if an NRI plans to engage in certain financial transactions in India, such as opening a bank account, making investments, buying or selling property, or conducting other financial transactions, having a PAN is necessary.

PAN is often required for compliance with tax regulations, and it serves as a crucial identifier for various financial transactions.

If an NRI needs to obtain a PAN, they can apply for it through the online application process provided by the Income Tax Department of India. The process involves submitting the necessary documents, and once issued, the PAN is valid for various financial transactions in India.

An NRI needs a PAN Card if that NRI has got a taxable income in India. According to the new rule of SEBI, any NRI not having PAN Card cannot do the share trading by depository or broker.

PAN Card is also mandatory for an NRI if the NRI would like to invest in Mutual Funds

So, in short:

Do NRI require PAN card?

Yes, it is required to file income tax or to enter in financial transactions.

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