Is it Compulsory? YES, it is mandatory now days to quote a PAN no. if you are carrying any kind of financial transactions in India like: tax filing, businesses, bank account, property, investing in India, remittances, etc.

The Benefits: Unfortunately there are not many advantages. Rather you need to have a permanent account number if you wish to do any sort of investment or finance related transaction in India.

Does a NRI have to File Tax, if he gets a PAN card?

A lot of individuals have this misconception that they have to start filing taxes once the issues a PAN to them. As far as we understand filing returns is totally different from actually paying taxes. Though this tax id is mandatory these days for a lot of finance and investment oriented deals and transactions, but it does not mean that you have to pay taxes. You pay taxes only if you generate or accrue income in/from India. However it is still advisable that even if you do not make money in India, you still go ahead and file 'NILL or ZERO' returns. This would for sure improve your eligibility to get various types of loans and credit history.

Why should you have a PAN card number?

A PAN number has become indispensable in carrying out any major transaction in India.

• The legal framework for PAN was laid down in the Income Tax Act of 1961. Since 2005, it has become compulsory to quote PAN on all income tax returns when you are communicating with the IT department.

• Even if you do not pay income tax, even then it is recommended that you get a PAN number. This is because this number is used in many different transactions. In fact, the PANcard was created so that all your transactions can be directly linked to you by the IT department

• NRIs are required to provide the copy of their PAN cards while opening bank accounts, purchasing or selling landed property, shares, mutual funds, insurance and automobile, obtaining a landline telephone connection and even for cash transactions.