PAN (Permanent Account Number) 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 to every taxpayer. It also serves as a valid identity proof.
PAN is mandatory for every person who is filing the income tax return or who wish to carry out a financial transaction for which quoting of PAN is compulsory.
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.