PAN and Aadhaar cards for non-resident Indians

A PAN card is a necessary document for NRIs to conduct their monetary and tax-related duties in India. It isn't simply a tax document, but also evidence of identity. It supports a variety of financial activities, including property purchases and stock investments.

Staying abroad might lead some NRIs to question the necessity of a PAN card. However, according to current Indian tax regulations, NRIs need a PAN card for the following reasons:

• Filing income tax returns (ITR) in India
• Opening bank accounts, including NRI bank accounts and NRI demat accounts
• Investing in mutual funds, debentures, or bonds exceeding INR50,000
• Purchasing gold worth more than INR2 lakh
• Buying or selling immovable property exceeding INR10 lakh
• Depositing cash exceeding INR50,000 in a single day with a bank
• Holding a time deposit exceeding INR50,000 or INR5 lakh in aggregate during a financial year (April to March) with a bank

Under the Income Tax Act, a PAN card is mandatory if you need to file an ITR in India, which is required when your income in India exceeds:

• INR2.5 lakh (under the old tax regime)
• INR4 lakh (under the new tax regime)

The application process for an NRI PAN card is quite similar to the individual PAN application process. However, some things are different.

1. Access the official Protean website. Then select the 'New PAN - Foreign Citizen (Form 49AA)' option.
2. Under 'Quick links', select 'Online PAN Services'.
3. Select 'Paperless PAN Application'.
4. Register and generate a token.
5. Choose 'New PAN Foreign Citizen (Form 49AA)' and select 'Individual'.
6. Fill in your personal details and consent to data usage.
7. Select 'Submit scanned images through e-Sign'.
8. Choose whether you need a physical PAN card.
9. Enter the last 4 digits of your Aadhaar.
10. Provide your father's name and, if applicable, your mother's name.
11. Fill in your contact details and source of income.
12. Confirm your AO code.
13. Upload your photo, signature, and supporting documents in the specified formats.
14. Review and submit the form.
15. Make the payment and complete the e-KYC authentication.
16. Digitally sign the application using an OTP.
17. Receive your PAN.

1. Get the 49AA form from the Protean website.
2. Complete the form with the necessary details.
3. Attach attested copies of the required documents such as ID proof (Indian passport), birth proof (Indian passport), address proof (Indian passport), a foreign bank account statement or NRE bank account statement.
4. Submit the completed form and documents to your nearest Tax Information Network Facilitation Centre (TIN-FC) or PAN Centre.
5. After submission, you will receive an acknowledgement receipt. Use this to track the status of your application.

For Indian citizens (NRIs), you'll need:

• Proof of identity: passport copy
• Proof of address: overseas bank statement; NRE/NRO account statement; overseas citizen of India (OCI) or person of Indian origin or (PIO) card (if applicable)
• OCI or PIO card (if applicable)
• Proof of date of birth: passport or other government-issued document

An Aadhaar card, issued by the Unique Identification Authority of India (UIDAI), is a 12-digit unique number that serves as proof of identity and address. While optional for NRIs, it is widely accepted as proof of identity, address, and date of birth. NRIs commonly use Aadhaar cards for:

• Opening NRI bank accounts
• Re-KYC or activation of dormant accounts
• Buying or selling property
• Filing income tax returns (ITR)

As an NRI, you can schedule an Aadhaar card appointment through the Unique Identification Authority of India (UIDAI) website or at your nearest Aadhaar Seva Kendra. You will need to present your Indian passport as proof of identity, address, and NRI status.

According to the latest UIDAI guidelines, you must also submit a completed Aadhaar enrolment or update form.

For more information, visit the UIDAI website.

Non-residents who have updated their residency status to NRI on the income tax portal do not need to link their Aadhaar and PAN cards. However, NRIs can voluntarily link these cards by paying the specified fee on the income tax portal.

• Log in to the income tax portal
• Navigate to the 'My Profile' section
• Change your residential status to non resident

By following these steps, you an ensure your residency status is accurately reflected, helping you manage your financial obligations in India effectively.

Failing to update your residency status with the Income Tax Department may render your PAN inoperative. If your PAN is marked as inoperative, you may face the following issues:

• Pending refunds and associated interest will not be received
• Tax Deducted at Source (TDS) will be deducted at a higher rate as per section 206AA
• Tax Collected at Source (TCS) will be collected at a higher rate as per section 206CC.

To reactivate your PAN, inform your local jurisdictional assessing officer (JAO) about your NRI status by providing necessary documents, such as self-attested copies of your passport and PAN card. If you wish to voluntarily link your Aadhaar and PAN cards, you'll need to pay a fee.