What is an NRI PAN Card?
NRI PAN Card is a Permanent Account Number (PAN) card of the Income Tax Department of India that is being issued to a Non-Resident Indian (NRI), similarly to Indian citizens, the NRI also requires a PAN card to use in India in financial and tax-related transactions. It is a 10 code-digit alpha numerical figure embossed on a laminated card, which is utilized to trace the financial transactions, tax filing, and tax evasion prevention
Documents to be provided to obtain NRI PAN card
1. Proof of Identity –Â (POI) Passport and Other options OCI card, PIO card, voter ID (if Indian)
2. Address proof (POA)– Passport(with foreign address) as well as Bank account statement (NRE/NRO account),Utility bills (electricity,water, gas) in your name, Overseas driving license and OCI/PIO card showing your present address.
3. Evidence of Date of Birth (DOB) –Â Passport (foreign), Birth certificate.
4. Photograph – curent passport size color photograph (white background and regular size)
Benefits of an NRI PAN Card
NRI PAN Card has a series of substantial advantages that cause the financial and legal operations in India to be hustle-free and easy to Non-Resident Indians. A valid PAN takes care of the ease that an NRI can manage money, investments and property in India and also remain within the confines of the tax regulations. The greatest advantage is that it gives NRIs the freedom to open NRE/NRO bank accounts to be able to conduct any banking transactions freely. Investment in mutual funds, stock market, or fixed deposit is also mandatory and hence PAN assists NRIs to expand their wealth in India within the scope of the law and in an effective manner. The other major benefit is on property transactions, be it acquiring property or selling, PAN is mandatory in registration, payment of taxes and refund. In the case of the Income Tax, PAN is highly beneficial as it assists NRIs to submit income tax returns on income gained in India, e.g rent, dividends, or capital gains. More importantly, it avoids deductions of higher TDSÂ a PAN card compels banks and buyers to deduct tax at a flat 20 percent and above, whilst using a PAN card, the appropriate and lower rates are deducted. Along with taxes and property, PAN is also a valid identity document in India, which can be used in transactions with finances, the Demat accounts creation, or even in business establishment. Concisely, NRI PAN card is a financial key, it provides the NRIs with a chance to bank, invest, purchase property and pay taxes in India without any hitches and even assures them that they will not lose their money in unnecessary deductions of taxes
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