A Few Helpful Points that we wanted to share with NRIs & Foreign Nationals.
What is a PAN Number?
Permanent Account Number (PAN) refers to a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department in India. It can be considered as a Indian Tax Number (Tax ID) and an ID proof.
Is it Necessary for NRIs to have a PAN Card?
PAN is mandatory as per the Indian Income Tax Department. With effect from April 1, 2006, SEBI has also made PAN compulsory for all investors wanting to invest in India. It is also compulsory to mention a PAN if one wants to carry any kind of financial or investment related transaction in India over Rs.49,999.
What are the uses of a PAN?
As per the Indian Govt one its necessary to quote a PAN on most types of financial and investment related transactions in India & also on the tax forms while filing taxes in India. You also need a if you want to open a Demat Account, make stock investment, buy sell shares/stocks or mutual funds, invest in other kinds of financial assets, purchase real estate, opening bank account, get loans, applying for a visa and passport, receiving rental income, send/receive foreign remittance from abroad, etc etc.
Is it necessary for NRIs to file taxes in India if they have a PAN?
As per our knowledge it is not compulsory for NRIs to file taxes in India even if they hold a PAN Number. Filing taxes does not mean you pay taxes. Filing tax returns and Paying taxes are two different things all together. You pay taxes only if you are making money or generating income in India. But still its advised to file taxes even though you are not making any money in India, because it enhances your credibility and makes it easy for one to get various types of loans, etc.