Why Do You Need A Pan Even If You Are A Nri?

By Author: Vijay K Shetty
Total Articles: 2541
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A Permanent Account Number, abbreviated as the PAN, is a unique sequence of 10 digits with a combination of alphabet and numerals. The PAN card contains the name, date of birth, father's name and the photo of the individual to whom the PAN card is issued and is non-transferable. This number is issued to any individual, firm or a body which is identified as taxable by the Income Tax Department of India, according to Indian Income Tax Act 1961. It is unique, permanent and independent of change of address or name or anything in this regard.

The number is equivalent to a National Identification Number issued in many countries like the United States (known as the Social Security Number, SSN), United Kingdom (National Insurance Number, NINO) and France (INSEE code). It is issued on the idea of tracking all the taxable entities and transactions and to prevent tax evasion. Despite being an important ID proof, the PAN is also required to carry out financial transaction such as opening a bank account, purchase of assets etc.

There is a general notion that only citizens of India are issued PAN number but NRIs are also issued ...
... PAN number and is necessary to leverage the facilities availed after receiving the PAN card. PAN card serves as an ID and in the case of NRIs, it shows the relation of the person with India. Besides serving as an ID, the PAN is mandatory for any NRI who wishes to transact money to his relatives or just to deposit money to the bank account in this regard. Though the PAN number is not requested initially when opening a bank account in India (in branches located in India, not in case of Indian Banks situated in foreign nations), it is mandatory incase of carrying out any transactions through the account. On the account of a minor, the PAN number of any parent is required for the same. This applies to the case of opening a Demat account while trading commodities as well.

Furthermore, the PAN is needed in the case of purchase or sale of any immovable property that is valued at or above 5,00,000 INR. In the case of formulation of the document which serves as the proof of the transaction of the property, the PAN numbers of the co-owners, the seller and the buyer are to be mentioned in the document. This applies to the purchase of mutual funds or acquiring shares of any firms also.

Additionally, the PAN card serves good while applying for a telephone connection or cellular connection in India. It is also requested for payment of bills on any hotels or during travel if the estimate is exceeding 25,000 INR.

Vijay K Shetty, Platinum Level Author.

Get more information on NRI PAN Card, NRO savings Account