NRI Tips: Everything about India PAN card: necessary, compulsory, application..
No, we are not talking about the pan we use in the kitchen. That is also necessary and compulsory but for different needs. 
PAN – ‘Permanent Account Number’ is issued by the income tax authorities in India. The PAN card is similar to the Social Security Number (SSN) card in USA or the Social Insurance Number (SIN) card in Canada.
The PAN is a ten-digit alphanumeric number, and is in the form of a laminated card. You can only have one (unique) PAN. Well, that is the law.
Why is the PAN card necessary and compulsory?
Straight from the horse’s mouth, according to the Indian Income Tax Department:
‘It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be mandatory to quote PAN for any payments due to Income Tax Department.’
Also, it is compulsory to quote PAN in all documents pertaining to financial transactions. Some examples of the transactions include:
- Sale and purchase of immovable property
- Sale or purchase of motor vehicle
- Payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants or in connection with travel to any foreign country.
- To obtain a telephone or cellular telephone connection.
- For making a deposit exceeding Rs. 50,000/- with a Bank or Post Office.
Do NRIs need PAN and why?
As mentioned above, PAN card is required for any financial transitions in India. So, the PAN card is required for any NRI who is planning to: Read the rest of this entry »
