Is it Compulsory for Nri's to get a Pan Card

September 28, 2013 11:47
Is it Compulsory for Nri's to get a Pan Card

When it comes to pan cards, there are normally two main questions that Nri's may have are:

1. If you have a Pan card, do you have to file a tax return in India.

2. Is it compulsory for NRIs to have a Pan card if visiting India

Requirement to file tax in India

• Pan card is a requirement only if a person has income on which tax is payable in India. There must be millions of people in India who have Pan cards and have never filed taxes.

• There is no law in India that make it compulsory for everyone to file income tax returns. 

• Only those persons who have income that is over the tax free allowance allowed, is required to file tax returns. Hence, if you have taxable income in India, you should get a pan card and file a tax return in India.

• Many people get pan cards as they are normally required now to open bank accounts and is considered a form of identification in India.

Is Pan card compulsory for Nri’s visiting India

Pan card is not compulsory for Nri's, PIO's or Foreigners visiting India. While many Nri's who now hold foreign passports do get pan cards, the same rules that apply to local Indian citizens, who reside in India, applies to Non-residents.

Persons of Indian origin and foreigners visiting India may some times encounter a situation where they may be required to produce a Pan card. For instance when buying a motor car. When faced with such a situation, Non-residents can simply opt to fill in Form 60 which is an exemption from providing a Pan and can be used by those who do not have a Pan card because they are non-residents.

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