PAN Card Guide for NRIs by Aditya Sharma

Source: http://www.NriInvestIndia.com/

A Permanent Account Number Card or a PAN Card is perhaps one of the most important
card/document that one needs today for various financial or economic transactions. But
many people wonder what is a PAN card.

Permanent Account Number Card or PAN Card as its widely known refers to a ten-digit
alphanumeric number, issued in the form of a laminated card, by the Income Tax (I-T)
Department in India. It has been made compulsory since 2005, to have a PAN number for
all those who file their income tax returns. As per the I-T Department, we have to quote
the PAN on return of income as also on all correspondence with any income tax authority
in the country.

Moreover, it is now compulsory to quote PAN in all documents pertaining to financial

transactions as notified from time to time by the Central Board of Direct Taxes (CBDT).
Some of these financial transactions include sale and purchase of immovable property or
motor vehicle, or paying the hotels and restaurants in cash whose amount exceeds a
certain limit, or in connection with travel to any foreign country. In fact we have to also
mention PAN for obtaining a telephone or cellular telephone connection!

Likewise, PAN has to be mentioned for making a time deposit exceeding Rs.50, 000/-
with a Bank or Post Office or for depositing cash of Rs.50, 000/- or more in a Bank.

The following points need to be kept in mind if you possess or want a PAN:

• It is statutory responsibility of a person receiving document relating to economic

or financial transactions notified by the CBDT to ensure that PAN has been duly
quoted in the document.
• Obtaining or possessing more than one PAN is against the law.
• It is compulsory to quote PAN on return of income
• All existing assesses or taxpayers or persons who are required to furnish a return
of income, even on behalf of others, must obtain PAN
• Any person, who intends to enter into financial transaction where quoting PAN is
mandatory, must also obtain PAN.
• The Assessing Officer may allot PAN to any person either on his own or on a
specific request from such person.
The New Superior PAN Card

Following our Finance Minister’s order, the I-T Department has taken out a new PAN
Card since 2007. It will carry a coloured photo-image in case of individual applicants. It
is a superior card. It is tamper proof and has built-in security features such as a hologram,
fingerprints of the applicants and UV line. These security features will thwart forgery of
PAN cards as every human has different characteristics.

For providing upgraded PAN services, UTI Investor Services Ltd. (UTIISL) has been
authorised to collect Rs. 60/- per application with the new simplified PAN form costing
Rs. 5/-.

The UTIISL, for this purpose, has set up at least one counter in each of the 501 cities as
requested by the Income Tax department. Most of these counters for PAN have been set
up at I-T offices. In big cities like Delhi, Mumbai, Chennai, Bangalore etc. however,
UTIISL has set up more counters. Service counters have also been set up at 50 branches
of UTI MF to handle PAN card customers.

We do know that people are weary of giving out their personal information especially to
an unknown company, even if it is authorised by the Government. The applicants and
PAN card holders need not worry about giving such details to UTIISL as all the
information related to your PAN card remains with the government and UTIISL cannot
use it for any other purpose.

What happens to existent PAN Card holders?

We are sure this one question must be bothering all the existent PAN Card holders. What
happens to those people who have the old PAN Card. Do they also need to submit their
cards and get a new one? The answer to this is NO. The existing PAN cards would
continue to be valid. It is OPTIONAL for these PAN cardholders to obtain the new plastic
cards. However, the Government / I-T Department would definitely persuade the old card
holders to submit their old cards and get the new one as it would prevent the crime of
duplication and forgery.

I do not have the card though have received my PAN.

A mistake that does not happen often, nevertheless anyone who has already received a
PAN but not the card, can either ask the I-T Department to issue the new card or they can
opt for a smart card by applying for the same.

I had applied for a PAN Card some time back. Will I get the old or the new card?
The kind of card you would get depends on WHEN you applied for it. The applications,
received by the I-T department till 30 June 2003, would be issued the old card. However,
if an individual wishes, she or he can get the new card on payment of Rs.60/-. All
applications made and received, by the I-T Department, from 1 July 2003 onwards, will
be handled by UTI-ISL and these applicants will be given the new PAN cards.

FREQUENTLY ASKED QUESTIONS

1. What is PAN?
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the
form of a laminated card, by an Assessing Officer of the Income Tax (I-T) Department. A
typical PAN would be, for e.g., ABCDE1234F.

2. Why is it necessary to have PAN?

It is necessary to have PAN because as per the rules of I-T Department, it is mandatory to
quote PAN on all correspondence with any income tax authority. It is good to mention
here that since 1 January 2005, it has become mandatory to quote PAN on challans for
any payment due to the I-T Department. Also, as stated above, it is now compulsory to
quote PAN in all documents pertaining to financial transactions notified from time to time
by the Central Board of Direct Taxes (CBDT). Some of these financial transactions
include sale and purchase of immovable property or motor vehicle, or paying the hotels
and restaurants in cash whose amount exceeds a certain limit, or in connection with travel
to any foreign country. In fact PAN has to be mentioned for obtaining a telephone or
cellular telephone connection! Likewise, PAN has to be quoted for making a time deposit
exceeding Rs.50, 000/- with a Bank or Post Office or for depositing cash of Rs.50, 000/-
or more in a Bank.

3. How does Income Tax Department ensure that PAN is quoted on transactions
mentioned above?
It is the responsibility of anyone and everyone entering into any kind of financial and/or
economic transactions as notified by the CBDT, to quote PAN in the related documents.

4. Is it compulsory to quote PAN on return of income?

Yes, it is compulsory to quote PAN on return of income.

5. How will these authorities verify PAN?

The authorities verify PAN from the I-T Department’s website with the help of the
facility provided.

6. Who must have a PAN?

According to the I-T Department, it is compulsory for the following people to have PAN:
• All taxpayers (including those who furnish return of income on behalf of others)
must obtain PAN.
• Any person, who intends to enter into financial transaction such that its document
requires quoting PAN, must also obtain PAN.
 • The Assessing Officer may allot PAN to any person either on his own or on a
specific request from such person.

7. Can a person obtain or use more than one PAN?

There have been cases where a person ahs been using two PAN for different financial
transactions, but it must be kept in mind that obtaining or possessing more than one PAN
is against the law.

8. Where to apply for PAN?

All cities and towns having an I-T office have at least one IT PAN Service Centre. Such
centres are set up and managed by UTIISL by order of the I-T Department. It has also
authorised the National Securities Depository Ltd (NDSL) to dispense PAN services from
Taxpayer Identification Number (TIN) Facilitation Centres.

NRIs may seek the assistance of private brokers who will guide and assist you in getting
a NRI PAN Card in any part of the world. These brokers will help you in filling the PAN
application form and will also submit the same as your representative in India.

PAN assistance brokers may be sought at:

www.nripan.com
www.pancardnri.com
www.pancardonline.com

You can also apply through these brokers, by contacting them about PAN Card assistance
for Non Resident Indians (NRIs), Persons of Indian Origin (PIOs) and Overseas Citizen
of India (OCIs):
http://www.pancardnri.com/apply-for-pan-card-online.html

9. How to apply for a PAN? Can an application for PAN be made on plain paper?
No, PAN application cannot be made on any paper. It has to be made ONLY on Form
49A. A PAN application (Form 49A) can be downloaded from the website of Income Tax
department or UTIISL or you can download it here:
http://www.nripan.com/nri-pan-application.html
OR
http://nriinvestindia.com/nri-apply-pan-card-online.html
One needs to pay Rs.5/- in cash to the I-T office when you submit the downloaded form.
The form is also available at IT PAN Service centers and TIN Facilitation centres.

10. Can an application for PAN be made in Form 49A obtained from anywhere?
Yes, PAN applications (Form 49A) can be obtained from various other sources, apart
from IT PAN Service Centres. It can be downloaded from the website of Income Tax
department or UTIISL or NSDL. The application can also be made on form printed by
local printers or a photocopy of downloaded or printed form.

11. Can an application for PAN be made through Internet?

Yes, application for PAN can be made through Internet, as also can requests for changes
or correction in PAN data or request for new PAN card (for an existing PAN) be made
through Internet. For more details visit: www.tin-nsdl.com

12. How do I get a PAN allotted quickly (TATKAL)?

You can get a TATKAL PAN if the application is submitted through Internet and the
payment for the same has been made through a ‘nominated’ credit card.

13. What documents are to be submitted along with the application form?
The following documents are to be submitted with Form 49A:
• Individual applicants will have to affix one recent stamp size (3.5 cm x 2.5 cm)
photograph on the form
• Any one document listed in Rule 114 must be submitted as proof of identity and
address
• Designation and Code of the concerned Assessing Officer of the Income Tax
Department will have to be mentioned in the form

14. Which documents will serve as proof of identity in case of individual applicants,
including minors and Hindu Undivided Family (HUF) applicants?
In case of individual applicants, a copy of any of the following document has to be
submitted:

School leaving certificate; matriculation certificate; a degree from a recognized

educational institution; depository account; credit card; bank account; water bill; ration
card; property tax assessment order; passport; voter identity card; driving license;
certificate of identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted
Officer.

In case the PAN applicant is a minor, any of above documents of any of the parent or
guardian of such minor shall serve as proof of Identity.

In case PAN application is made on behalf of a HUF, any of above documents of the
Karta of the HUF will serve as proof of Identity.

15. What is proof of ‘Address’ for Individual applicants, including minors and HUF
applicants?
In case of individual applicants, a copy of any of the following document has to be
submitted as proof of ‘address’:

Electricity bill; telephone bill; depository account; credit card; bank account; ration card;
employer certificate; passport; voter identity card; property tax assessment order; driving
license; rent receipt; certificate of address signed by a MP / MLA / Municipal Councillor
/ Gazetted Officer.

In case the PAN applicant is a minor, any of above documents of any of the parents or
guardian of such minor shall serve as proof of Address.
In case PAN application is made on behalf of a HUF, any of above documents of the
Karta of the HUF will serve as proof of Address.

16. What documents will serve as proof of Identity and Address for other
applicants?

A copy of any of the following documents will serve as proof of identity and address for
other applicants:

Certificate of Registration issued by the Registrar of Companies; Copy of Certificate of

Registration issued by the Registrar of Firms; Copy of Partnership Deed or Copy of Trust
deed or Copy of Certificate of Registration Number issued by Charity Commissioner;
Copy of Agreement or Copy of Certificate of Registration Number issued by Charity
Commissioner or Registrar of Co-operative Society or any other Competent Authority;
any other document originating from any Central or State Government Department
establishing Identity and Address of such person.

17. How to find ‘Assessing Officer code’?

You may find the Assessing Officer code from the I-T Office where you submit your
return of income. Applicants who have never filed return of income may find out
Assessing Officer code with the help of either IT PAN Service Center or TIN Facilitation
Center or jurisdictional Income Tax Office.

18. Is a photograph compulsory for making an application for PAN?

Yes, a photograph is compulsory ONLY in case of ‘Individual’ applicants.

19. What is the procedure for applicants who cannot sign?

Applicants who cannot sign can affix their Left Hand Thumb impression of the applicant
on either Form 49A or ‘Request For New PAN Card Or/ And Changes In PAN Data’ at
the place meant for signatures and get attested by a Magistrate or a Notary Public or a
Gazetted Officer, with their official seal and stamp.

20. Is father’s name compulsory for female (including married/divorced/widow)

applicants?
Yes father’s name is compulsory for female applicants irrespective of their marital status.
In fact only father’s name is required to be filled in the PAN application (Form 49A).

21. Is it compulsory to mention telephone numbers on Form 49A?

No. Mentioning the telephone number is not compulsory, but its better to provide one as
it helps in faster communication.

22. Who can apply on behalf of non-resident, minor, lunatic, idiot, and court of
wards?
Section 160 of IT Act, 1961 provides for a Representative Assessee who will make an
application for PAN on behalf of a non-resident, a minor, lunatic, idiot, and court of
wards and such other persons.

23. I had applied to the department but I do not know my PAN?

Such people may contact the Aaykar Sampark Kendra (ASK) at 0124-2438000 (or
95124-2438000 from NCR). You may also visit the www.incometaxindia.gov.in and go to
‘know your PAN’.

24. Are there any charges to be paid at IT PAN Service Centers or TIN Facilitation
Centers?
Yes there are charges to be paid at the above-mentioned centres. UTIISL and NSDL have
been authorized to collect Rs.60 + Service Tax as applicable, per PAN application and
this includes cost of a tamper proof PAN card. This amount will have to be paid in cash.

25. Do you need to apply for a PAN when you move or transfer from one city to
another?
No. You do not need to apply for PAN in case of change of address. Permanent Account
Number (PAN), as the name suggests, is a permanent number and does not change during
lifetime of PAN holder. However, change of address is to be intimidated to the nearest IT
PAN Service Centre or TIN Facilitation Centre as the database needs to be updated.
These requests will have to be made in the form ‘Request For New PAN Card Or/And
Changes In PAN Data’. Also, change of address might change the Assessing Officer.

26. Will the existing PAN cards issued by the Department remain valid in view of the
new cards being allotted?
Yes, the existing PAN cards will be valid, and persons having the same need not apply for
a new one. However, the I-T Department might persuade such possessors to surrender
their old card and get the new one, as the latter would prevent the crime of duplication
and forgery.

27. Income Tax Department has issued me a PAN card; can I obtain a new tamper
proof PAN card?
Yes. Persons already having a PAN Card can apply for the new tamper proof card. This
requires surrendering the old card and filling up the ‘Request For New PAN Card Or/
And Changes In PAN Data’ form, in which existing PAN will have to be indicated. The
form and the card are to be handed over to the IT PAN Service Center or TIN Facilitation
Centre. The payment of Rs.60 + Service Tax as applicable, will also have to be made.

28. I had applied for PAN and received PAN number but have not received the PAN
Card?
Such people may apply in the form ‘Request For New PAN Card Or/ And Changes In
PAN Data’ at any of the nearest IT PAN Service Center or TIN Facilitation Center
quoting your PAN.

29. How will the new PAN card be delivered to me?

Your card will be delivered by the UTIISL or NSDL, as the case may be, at the address
provided by you on the form.

30. I want to pay taxes today but I do not have a PAN?

It generally takes about 15 days to get a new PAN allotted. However, PAN can be
obtained quicker (TATKAL PAN) in around 5 days if application is made through the
Internet and the processing fee paid through a ‘nominated’ credit card. It is advisable to
initiate action for obtaining PAN well in time.