Permanent Account Number (PAN) is a ten-digit alphanumeric number issued by the Income Tax Department. PAN enables the department to link all transactions of the "person" with the department.

These transactions include tax payments, TDS/TCS credits, returns of income and so on. PAN acts as an identifier for the "person" with the tax department.

Let’s take a look at what NRIs need to know before applying for a PAN Card.

Who Needs a PAN Card as an NRI?

PAN Card is mandatory for NRI individuals who derive their income source from India, such as rental income, mutual funds, stocks, etc.

Note: PAN card is not required for NRIs who own agricultural land. Income from agriculture is tax exempted.

Why do NRIs need a PAN Card?

PAN Card is essential for residents and non-residents of India (NRIs) to file their income from different sources. Here are the fillings that require a PAN Card:

  • Tax filing for NRIs who earn income from India

  • Capital gain from selling property

  • Dividend from stock

  • Rent

  • Transactions exceeding Rs.10 lakh in India require a PAN card

  • PAN is also required to open an NRE or NRO account in India, which are specialised accounts for NRIs to manage foreign currency or Indian rupees.

Explore the eligibility and process for obtaining an Aadhar Card for NRIs.

Types of PAN Cards for NRIs

  • Individuals: NRIs applying for a PAN card for individual purposes.

  • Businesses/Companies: Overseas businesses having economic activities in India.

  • Foreign Nationals: Foreigners requiring PAN for investment or business in India.

NRIs can apply for the PAN card using the Form 49A. Foreign nationals/corporations can apply for PAN cards by filling in 49AA.

Documents required to apply for NRI PAN card

  • 2 recent passport-sized photographs
  • Copy of passport
  • Copy of your Person of Indian Origin (PIO) card or Overseas Citizen of India (OCI) card (If applicable)
  • Overseas address proof like a residential permit or bank statement
  • NRE bank account statement showing at least two transactions in the last six months, which is verified and attested by proper authorities( Bank Manager, Embassy)
List of documents needed to apply for an NRI PAN card

​Procedure for PAN Card application by NRI​

There are two ways to apply for a PAN card: online and offline. You can choose any of the ways, whatever feels convenient to you.

Online application process

You can make an application for a PAN card online in the following way:

  • Step 1 - Visit the UTIITSL or Protean ( previously known as NSDL e-governance infrastructure limited) website.
  • Step 2 - Choose the NEW PAN “ Form 49A” option (This is the same for Indian citizens and NRIs) and select Form 49AA ( For foreign citizens )
  • Step 3 - Complete the form by filling in the personal details such as:
    • Name
    • Birth date
    • Address
    • Contact number
    • Email ID
  • Step 4 - Select the category and status as ‘Individual’ and ‘Non-Resident India’, respectively
  • Step 5 - Scan and upload all the required documents.
  • Step 6 - Make the application payment with UPI, Credit card, Debit card and net banking options.
  • Step 7 - Once the form is submitted, please note the application’s acknowledgement number, which is required to track your application’s progress.
  • Step 8 - Take a printout of the acknowledgement receipt. Paste 2 passport-size photos on the form and sign it.
  • Step 9 - You must send the acknowledgement receipt and the original or attested copies (the Indian embassy or consulate should attest it) to the UTIITSL or Protean office within 15 days of the e-form application.
  • Step 10 - On the envelope, write: "Application for PAN - Acknowledgement Number"

Offline application process​

If you prefer the offline method, here are steps to apply for a PAN card offline:

  • Step 1 - Go to the NSDL e-Gov site and download 'Form 49A'.
  • Step 2 - Fill in the application form with all the details that are required, affix a passport-size photo and sign the application.
  • Step 3 - Forward the filled form, along with the documents, to the local PAN centre or to your PAN application service agent.
  • Step 4 - Pay the relevant fees for the PAN card, such as the PAN issuing fees and the administrative/service fees.
  • Step 5 - Once you have submitted your application, you will be provided with an acknowledgement number that you can use to check the status of your PAN card application.
  • Step 6 - When the NSDL/UTIITSL department receives your application, your PAN card is usually issued within 15 days.
How NRIs can apply for a PAN card offline in India

Fees for NRI Pan Card

The fees to get a PAN Card depend on your delivery location.

  • Physical PAN card delivery to a foreign address costs approximately Rs.959, which includes the dispatch fees and the application fees.

  • Physical PAN card delivery to an Indian address costs around Rs.107, including the GST.

Note: These prices are subject to change. Please check the latest price using the link here.

Advantages of PAN to NRIs

A PAN is an essential identifier in the nation, having a variety of useful functions, as stated below.

  • PAN eases the process of paying taxes and is mandatory for filing tax returns.

  • NRIs can't invest in mutual funds or securities without a PAN.

  • PAN is needed to purchase vehicles or property in India.

  • Depositing more than Rs. 50,000 daily or booking fixed deposits worth Rs. 5 lakhs in a financial year needs PAN.

  • Having a PAN eases the KYC process in the majority of banks.

How to Correct Errors in an NRI PAN Card?

Errors in a PAN card, like name, date of birth, or address, can be corrected using the NRI PAN card correction form.

Steps to Correct PAN Card Errors Online:

  • Go to the official site – NSDL or UTIITSL.

  • Choose 'Correction of PAN Details' – Select the option to change details.

  • Enter required changes – Update information.

  • Upload supporting documents – Provide proof of accurate information (passport, bank statement, etc.).

  • Pay the fee mentioned– Pay the correction fee. It is usually around ₹959, similar to the application fee.

  • Submit the application – You can then track the status using the acknowledgement number.

How to track NRI PAN Card Status?

Once you have submitted your NRI PAN card application form online, you can check its status through the NSDL or UTIITSL portal.

Steps to Check PAN Card Status:

  • Visit the official PAN tracking website.

  • Enter your acknowledgement number.

  • Click on 'Submit' to see the status.

Common mistakes to avoid when applying for NRI PAN Card

While applying for an NRI PAN card, don't commit these common blunders:

  • Name or spelling mistake – Make sure the information is exactly the same as your passport.
  • Giving an Indian address rather than an overseas address – Give your present address according to your overseas bank statement.
  • Lack of attestation on documents – Certain documents are required to be attested by the Indian Embassy or authorised officers.
  • Incorrect selection of category – NRIs are required to make the right selection while filling out the form.
  • Failure to provide physical copies (if needed) – Physical submission is required for processing in a few instances.
  • Mismatched signatures - Signatures should be the same throughout to avoid complications later.

Conclusion

PAN card is necessary for filing tax returns of Indian income from interest earnings, rent from property and stock market holdings. Updated tax filings will help if you plan to settle in India or apply for a loan here.