1Our Team assist Non-Resident’s in Obtaining PAN?
Our team provides assistance to non-residents in obtaining PAN (Permanent Account Number), applying for PAN corrections, and PAN surrender, along with other income tax matters. To determine whether an individual is a non-resident Indian or not, their residential status needs to be determined under Section 6 of the Income-tax Act. An individual is said to be a non-resident in India if they are not a resident in India, and an individual is deemed to be a resident in India in any previous year if they satisfy certain conditions.
Non-residents are required to obtain PAN if they intend to file income tax returns or if their total income during a financial year exceeds Rs. 2,50,000. PAN is also compulsory for transactions for which quoting of PAN is necessary as per Rule 114B of Income Tax Rules 1962, or for any business whose turnover is likely to exceed Rs. 5 lakhs. Additionally, a person who is required to obtain an “Import Export Code” or who is entitled to receive any sum/income after TDS is required to obtain PAN.
PAN enables the department to link all transactions of the assessee with the department, facilitating easy retrieval of information of the assessee and matching of various investments, borrowings, and other business activities. A PAN card is a valuable means of photo identification accepted by all government and non-government institutions in the country, and it is mandatory for numerous financial transactions such as opening bank accounts, depositing cash in a bank account, opening a DEMAT account, transaction of immovable properties, and dealing in securities, among others.

  1. How to determine that an Individual is NRI?
    To determine whether an individual is a non-resident Indian or not, their residential status is required to be determined under Section 6 of the Income-tax Act. According to section 6, an individual is said to be a non-resident in India if they are not a resident in India. An individual is deemed to be a resident in India in any previous year if they satisfy any of the following conditions:
    A. If they are in India for a period of 182 days or more during the previous year; or
    B. If they are in India for a period of 60 days or more during the previous year and 365 days or more during the four years immediately preceding the previous year.
    However, condition No. 2 does not apply where an individual, being a citizen of India or a person of Indian origin, who is outside India, comes on a visit to India during the previous year. A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grandparents, was born in undivided India.
  2. When Non-Resident is Required to Obtain PAN?
    Every person who is a non-resident and is required to file or intends to file income tax returns, or whose total income during a financial year exceeds Rs. 2,50,000, or wishes to carry out a transaction for which the quoting of PAN is compulsory as per Rule 114B of Income Tax Rules 1962, or wishes to carry out any business whose turnover is likely to exceed Rs.5 Lakhs, or a person who is required to obtain an “Import Export Code,” or a person who is entitled to receive any sum/income after TDS, is required to obtain a PAN.
  3. What is the utility of PAN?
    The Permanent Account Number (PAN) is a unique identification number assigned to individuals, entities, and companies for the purpose of tracking their financial transactions with the Income Tax Department of India. The utility of PAN is as follows:
    A. It enables the Income Tax Department to link all transactions of the assessee with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence and so on.
    B. It facilitates easy retrieval of information of assessee and matching of various investments, borrowings and other business activities of assessee.
    C. It is a mandatory requirement for various financial transactions such as opening of bank accounts, deposit of cash in bank account, opening of DEMAT account, transaction of immovable properties, dealing in securities, etc.
    D. It is a valuable means of photo identification accepted by all Government and non-Government institutions in the country.
    Overall, PAN helps in maintaining a database of all financial transactions, preventing tax evasion and improving compliance.
    5.What are the specified financial transactions in which quoting of PAN is mandatory?
    As per Rule 114B of Income Tax Rules 1962, quoting of PAN is mandatory in the following specified financial transactions:
  4. Sale or purchase of any immovable property valued at Rs.10 lakh or more.
  5. Sale or purchase of a motor vehicle, excluding two-wheelers.
  6. Time deposits exceeding Rs.50,000 with a banking company.
  7. Opening of a new bank account.
  8. Payment of an amount of Rs.50,000 or more to a hotel or restaurant against the bill at any one time.
  9. Payment of an amount of Rs.50,000 or more for the purchase of shares or debentures of a company.
  10. Payment of an amount of Rs.50,000 or more to a Mutual Fund for purchase of its units.
  11. Payment of an amount of Rs.50,000 or more for the purchase of foreign currency.
  12. Payment of an amount of Rs.50,000 or more to a Credit Card Company against the outstanding balance on a Credit Card.
  13. Payment of an amount of Rs.50,000 or more to a Reserve Bank of India for acquiring bonds issued by it.
    11.Payment of an amount of Rs.50,000 or more to a company or an institution for acquiring bonds or debentures issued by it.
  14. Payment of an amount of Rs.50,000 or more for acquiring shares or securities in an IPO.
    It is important to note that the list of specified transactions is subject to change and individuals should refer to the latest rules and regulations for accurate information.