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What is a PAN Card?
PAN or permanent account number is
compulsory and necessary as per the rules and regulations
cited by the income tax department of India. This applies to
all Indian citizens as well as non resident Indians living
abroad, but wishing to carry out any financial transactions
in India. This number is compulsory for any financial
dealings in India. The IT department of India enforces this
rule, and one is required to quote the Pan card number on
the occasion of any transaction that needs to be conducted. |
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What are the Advantages of a PAN Number
for NRIs & PIOs?
The benefits of having a PAN number in
India are listed below. First and foremost, it acts as an
identity proof, a testimony to one’s relation to India. In
this context it is COMPULSORY for all non resident Indians
to possess a Pan card as it helps them carry out any
transactions in their country efficiently and with the
minimum amount of trouble. Thus if one wishes to invest in
India, or file taxes the PAN card is of utmost importance. |
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Why NRIs need a PAN Card?
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The PAN card needs to be
disclosed in the event of the purchase or sale of any
property. The document pertaining to the sale or purchase of
property must contain the PAN. This rule holds where
immovable property valued at Rs. 500,000 or more is
involved. In case of co-owners, the PAN of both the owners
needs to be mentioned. However, if a nominee holds the
property, it is important to mention the PAN of the legal
owner.
- If you wish to invest in India, carry any kind of
financial or investment related transactions in India.
- If one
is involved in the sale or purchase of four-wheelers, again
the Pan is required in the event of the registration.
Vehicles running on fixed rails, vehicles used only in
factories or other enclosed premises, or vehicles having
less than four wheels are exempt from this rule.
- Transactions with any banking companies also require the
PAN. When the sum involved is more than Rs. 50,000, the PAN
needs to be quoted. In case of post office savings involving
amounts more than Rs. 50,000, the same rule holds.
Investment in post office national savings certificate or
Kisan Vikas Patra is exempted from this rule.
- The PAN also comes into use when one is involved in a
contract of sale or purchase of securities exceeding 1 lakh.
This includes bonds, debentures, units, derivatives and
government securities.
Purchase of bank drafts, pay orders and bankers’ cheques
involving cash payments exceeding Rs. 50,0000.
Sale or purchase of foreign currency where the cash payment
exceeds Rs. 25,000. Thus the PAN is required for travel to
any foreign country.
- Application for the installation of the telephone requires
the PAN. Same is needed for a cellular phone as well.
- Opening a bank account requires the PAN. This is vital for
opening a new account in your name.
- If one raises bills of over Rs. 25,000 in restaurant or
hotels, the PAN might be required for the payments.
- If one wishes to apply for a credit card, he/she will have
to give his PAN for the delivery of a credit card.
Mutual funds investments also require the PAN. Payment of Rs.
50,000 or more for purchase of units or for purchase of
shares requires the PAN card. The PAN needs to be quoted in
any venture involving stocks, debentures or bonds.
- Lastly, any minor wishing to open a bank account will need
to quote the PAN of either parent. In case of a joint
account, the other person needs to provide the PAN. |
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We
assist Non-Resident Indians and Foreign Passport
holders to:
