Permanent Account Number or PAN is mandatory for every person who is filing income tax return or who wishes to carry out a financial transaction for which quoting of PAN is compulsory. PAN card for NRIs is a unique 10-digit alphanumeric identification code that is allotted by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It can also serve as a valid identity proof.
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Why an NRI Needs a Pan Card?
An NRI is mandatorily required to possess a PAN card in the following scenarios:
- If an NRI earns a taxable income in India.
- If an NRI wishes to trade in shares, through depository or through broker
- If he\she wants to invest in Mutual Funds.
- If he\she desires to purchase some land or any other property in India for purpose other than trading.