Government of India has now made mandatory to possess PAN card for every income earning individual and non-individual entities. It consists of 10-digit alphanumeric code which is unique to the holder of the card. To keep an eye over the financial transactions Income Tax Department of India has allowed domestic as well as foreign investors to provide their PAN card number while making any of the financial transactions exceeding the limit. Through this, tax evasion will be avoided and smooth business can be carried out domestically as well as internationally.
For all foreign investors planning to invest India or carrying business should get registered for the PAN card, if they wish to operate with their company accounts. For this, foreigners are required to fill the Form 49AA and submit along with other documents to the concerned authority.
Issuance of PAN card
PAN card is issued by Income UTI Technology Services Ltd. and National Security Depository Limited which has been authorized by Income Tax Department of India. The former is engaged in setting up and managing the IT PAN Service Centers in every city and latter to dispense PAN services from TIN facilitation centers in India. It is all processed under the supervision of Central Board of Direct Taxes.
Indian Income Tax law has given a mandate for the individuals who are eligible to apply for PAN which includes-
1. Every individual whose total income exceeds the maximum limit not chargeable to tax.
2. Any individual who carries business or profession and exceeds the threshold limit of total turnover or gross receipts.
3. Any person who requires to file return on income.
Application Procedures for Foreign Investors
Foreign investors who want to do business or invest in India are required to possess PAN card to carry out the financial transaction. For foreign nationals Form 49AA is required to get filled up for the issuance of PAN card. A nominal amount of ₹1020 [Application Fees ₹93.00 + 18.00% GST + Dispatch Charges ₹771.00] is required to paid in form of PAN fees.
Individuals filling form 49AA have to provide their basic details for the KYC process. This form should be duly signed by the Foreign Institutional Investor or Qualified Foreign Investor under regulation issued by SEBI.
Documents required for Individuals-
- Copy of passport
- Copy of Person of Indian Origin Card issued by Government of India
- Copy of Overseas Citizen of India card issued by Government of India
- Copy of other national or citizenship identification number or taxpayer identification number duly signed by the Indian embassy, high commission, or consulate in the country where the applicant is located
- Copy of bank account statement in the country of residence
- Driving license
- Copy of registration certificate issued by the foreigner’s registration office showing an Indian address
- Copy of visa granted and a copy of the appointment letter or contract from the Indian company, and the original certificate of Indian address issued by the employer
Documents Required for PAN Application – Corporates
1. Copy of Certificate of Registration incorporated in India (Specific requirements for foreign-invested corporations)
2. Copy of Certificate of Registration issued in the country where the applicant is located, duly apostilled by the Indian embassy in the country where the applicant is located
3. Copy of the registration certificate issued in India or of approval granted to set up an office in India by the Indian authorities.
Procedure of filling Form 49AA (For Foreign Investors/Nationals)
As this form consists of 17 sections and various sub-sections to provide an ease to the applicant in filling up the form. Given below are the components that Form 49AA serves to be duly filled:
- The first field that applicant need to fill is of Assessing Officer (AO Code). It consists of AO Type, Range number or AO number. You can find information regarding this on NSDL website
- Then fill in your title as Mr/Mrs/Ms/ with your surname, full name and middle name
- Use your name as to be printed in PAN card
- If you have been known by other name, then mention it in the given space
- Tick mark for your gender. It is applicable only for the individual applicants
- Enter your Date of Birth/Incorporation/Agreement/ Partnership/Association of Person in the next field
- Then enter details of your parents in the given space. It is applicable only for individual applicants
- Now enter your residence address and office address in the given space.
- Then fill in your mobile number and valid e-mail address
- Status of the applicant such as Individual/ HUF/Company/Partnership Firm and others mentioned in the form needs to be tick marked as applicable
- If you are a company, firms, etc, mention the registration number
- Mention your country of citizenship and ISD code of the country of citizenship
- Then mention full name and address of the representative or agent of the applicant in India
- After that you need to enter the name of the document submitted as Proof of Identity(POI) and Proof of Address(POA)
- At the end you need to fill the name, with date and place and duly signed on the form.
- Submit the duly filled form to NSDL e-Govt. or UTIITSL office along with other required documents and demand draft of the applicable fees if not paid online.
Once submitted, PAN card would be processed for delivery and will reach to your given address.