Necessity of PAN card for NRI
Effective 1st January 2007, all Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) need a Permanent Account Number (PAN) card to invest in India: primarily in Indian stock markets - viz: Indian mutual funds, stocks, derivatives, bonds or who wants to carry any kind of financial transaction.:
Applying for a PAN
Department of Income Tax (DIT) has appointed two agencies for issuing a Permanent Account Number and the PAN Card:
Unit Trust of India Investor Services Ltd (UTIISL)
National Securities Depository Limited (NSDL)
The PAN Card can be obtained by submitting Application Form 49A to either of these two agencies. The form can be downloaded. It gives an opportunity to both apply and pay for a PAN card online. The waiting time for an NRI is, on an average, 25-30 days. According to The Income Tax Department rule, Person is liable to pay a fine of Rs. 10000 if he doesn’t have a PAN.
Fee:
The fee for processing a PAN application is Rs.717 composed of application fee Rs.67 (Rs.60 + 12.24 per cent service tax) plus overseas dispatch charges of Rs.650. You can pay by demand draft payable at Mumbai.
Requirements:
Besides several other requirements, a proof of the following is also needed:
· His own identity
· Address in India as well as abroad
· Designation and code of the concerned Assessing Officer of Income Tax Department
· Details of a Representative Assessee: Section 161 of the Income Tax Act specifies that every Representative Assessee shall be subject to the same duties, responsibilities and liabilities as the NRI. And if the NRI who is being represented fails to pay his tax dues, such tax shall be levied upon and recovered from him i.e. the representative assessee.
Equity / Share Market Trading & Demat Account
To invest in share market, prior permission must be obtained from the Reserve Bank of India. All Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) need a PAN card to invest in the Indian stock markets. (Foreign investors would also need a PAN).
Demat or ‘dematerialized’ account enables you to buy, sell and transact shares without the endless paperwork and delays, thus making it possible to even trade on the internet. It is also safe, secure and convenient and helps you to avoid stamp duty and filling transfer deeds, and obtaining quick receipt(s) of benefits like stock splits and bonuses.
Filing Income Tax Returns
It is required to recite your PAN on a return of income, all encounters with any income tax authority for anything that you owe to the Income Tax Department.
Property Transactions
This condition has been waived for NRIs and PIOs (as per Rule 114C). Thus, it is not mandatory for an NRI / PIO to have a PAN for entering into a property transaction.
It is required to recite your PAN on all documents that have to do with and transactions you might have economically or financially.
Applying for a PAN
Department of Income Tax (DIT) has appointed two agencies for issuing a Permanent Account Number and the PAN Card:
Unit Trust of India Investor Services Ltd (UTIISL)
National Securities Depository Limited (NSDL)
The PAN Card can be obtained by submitting Application Form 49A to either of these two agencies. The form can be downloaded. It gives an opportunity to both apply and pay for a PAN card online. The waiting time for an NRI is, on an average, 25-30 days. According to The Income Tax Department rule, Person is liable to pay a fine of Rs. 10000 if he doesn’t have a PAN.
Fee:
The fee for processing a PAN application is Rs.717 composed of application fee Rs.67 (Rs.60 + 12.24 per cent service tax) plus overseas dispatch charges of Rs.650. You can pay by demand draft payable at Mumbai.
Requirements:
Besides several other requirements, a proof of the following is also needed:
· His own identity
· Address in India as well as abroad
· Designation and code of the concerned Assessing Officer of Income Tax Department
· Details of a Representative Assessee: Section 161 of the Income Tax Act specifies that every Representative Assessee shall be subject to the same duties, responsibilities and liabilities as the NRI. And if the NRI who is being represented fails to pay his tax dues, such tax shall be levied upon and recovered from him i.e. the representative assessee.
Equity / Share Market Trading & Demat Account
To invest in share market, prior permission must be obtained from the Reserve Bank of India. All Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) need a PAN card to invest in the Indian stock markets. (Foreign investors would also need a PAN).
Demat or ‘dematerialized’ account enables you to buy, sell and transact shares without the endless paperwork and delays, thus making it possible to even trade on the internet. It is also safe, secure and convenient and helps you to avoid stamp duty and filling transfer deeds, and obtaining quick receipt(s) of benefits like stock splits and bonuses.
Filing Income Tax Returns
It is required to recite your PAN on a return of income, all encounters with any income tax authority for anything that you owe to the Income Tax Department.
Property Transactions
This condition has been waived for NRIs and PIOs (as per Rule 114C). Thus, it is not mandatory for an NRI / PIO to have a PAN for entering into a property transaction.
It is required to recite your PAN on all documents that have to do with and transactions you might have economically or financially.
Comments
Any one can apply online, Its very easy to apply online at eMudhra PAN Service. Visit website to apply online.