A Permanent account number is also known as a PAN. You can use this number as your own personal ID or as a tax id number. This number is given to everyone by the income tax department for you to use as a tax id. This card will look the size of a credit card.
Are you a NRI looking forward to a great investment in Indian properties? There are lots of opportunities waiting for you these days. But you need to make sure that you invest in the right place and at the right time. Have you ever thought about the Indian real estate investment?
As the economy of India continues to grow, there is a surge of NRI’s wanting to invest or even return to India. For them, the primary worry is the Indian tax system and structure as they do not want to lose too much of the money they made abroad.
Being a business entity (company), individual or any kind of firm, you need to be familiar with the acronym PAN i.e. Permanent Account Number. This Indian PAN number is basically designed with ten numeric digits and these numbers are printed on the laminated piece of card.
Does an NRI have to file taxes after obtaining a PAN card? This is a question that I am asked all of the time. The answer is no, not always. There are many times when it is not necessary to pay taxes even though you have a Permanent Account number.
NRIs are Indians living abroad in a different country. In this article, we are considering those with a foreign passport and an OCI card as well. Some of you need to apply for a PAN card in order to get some of your financial issues sorted out back in India while continuing to live abroad. This may be because you used to live in India and you may have left some finances there or are planning on moving back. A PAN card is similar to an SSN number in the United States as it is given to people in order to keep track of what taxes are paid and what are not. Your PAN card number is allotted to you by the Income Tax Department of India.
NRIs need to apply for PAN card to do the following things:
-They need a PAN card for investing in India
-Opening a bank account in India
-Applying for a loan in India
-Opening a demat account in India
-Filing taxes in India
-Opening up a company in India
-Buying and selling a commercial or a private property in India.
Just because a PAN card is also known as an income tax number doesn’t mean that you are entitled to pay taxes in India. You do not have to pay taxes in India if you do not have an income in India. An income does not just mean a job. An income can mean property tax, or tax on investments, etc. If you are living abroad and you only need a PAN card in order to open a bank account or to have an extra ID proof and you are not generating an income in India, then you do not have to file taxes. If you are generating even a little bit of income in India then you will have to file taxes. Especially, if you are working in India or are making investments in India, then you should pay taxes.
Some say that it is advised to file taxes even if you don’t have an income in India. If you file zero taxes it may still help out your credit score so that you can apply for a loan or something in the future. It also keeps everything up to date with the Income Tax Department and keeps you in good standing with the government.
If you are ready to get started, when you go to http://www.nriinvestindia.com/pancard.html and apply for your PAN card, don’t worry about having to file taxes unless you’re generating an income in India. If you apply for a PAN card online through an online company, you can ask them any questions you may have when filing up the applications or any questions about filing taxes. Make sure you take your time filling out the application so that it will get approved right away and you can get whatever you need to done. It can be a tedious and time consuming process if you do not make sure that everything is done correctly the first time. If you are looking to file taxes, NriInvestIndia.com can help send you to the right person to do that while living abroad.
Are you a NRI looking to apply for a PAN card number? Do you know what it involves? The process and various documentation that is needed?
It can actually become a very tedious process to apply for a Permanent Account Number in India. It gets even worse when you are living abroad somewhere. Let’s say you are a UK resident, but you hold an Indian passport. You want to apply for a PAN card through the Indian government without having to go to India. This is close to impossible without something going wrong. So, what do you do?
There are now brokers that can help you with this. When you are using a broker, you do not have to deal directly with the Indian government at all. You deal with your broker and your broker will deal with the PAN department.
Do you know how the process works? Well, When you send in your application directly to the government or to a broker and the government receives it, they check your application for mistakes. Now, in the PAN department in India, they are usually tired and do not care much about getting your PAN card. It is more work for them if they accept your application, so they find every reason not to. This makes it difficult on you because that means your application need to be almost perfect.
Once the PAN department accepts your application, it is forwarded to the IT Department where they go through and come up with a PAN number to allot you with. This is a special number that no one else has. It is uniquely yours. After you are allotted a number, the PAN department will send out your card using a simple cheap speed post.
When you are living overseas, the card has quite a way to travel. This is another time when many problems occur. Sometimes the card gets lost in transit and you will never see it. Then you would have to apply for a new one and go through the process all over again. Sometimes, when you receive the card, there is a printing mistake done by the PAN department and again you will have to apply for a duplication card with corrections.
There are also times when you will not be home when the card gets there and the post office will send it back to India. When it is returned, Its status is RUD lying in Mumbai. This is because it is always sent back to the Mumbai office. This is another long process to get it out of there and sent back to your house. Many people find it easier to just apply for a duplicate card instead of going through the hassle of having the card returned.
A broker can help you with all of these problems. When you apply for a PAN card through a broker, you have three simple jobs.
1. Fill up the forms and provide the documents necessary.
2. Send them to your broker’s office.
3. Wait for you PAN card.
That’s it! There is not much more you have to do. Your broker will take care of any problem that they come across and let you know if there are any more documents or information that is needed from you.
Are you worried about the documents needed? The documents that you need to provide a pretty simple. You just need an ID proof document, and address proof document, and 2 photographs.
The ID proof document is the easiest. You just need to provide your passport copy, no matter what passport you hold, this will work.
The address proof is where it is a little bit more difficult. You have an option to use your passport copy if it states your address in your passport. You can use your OCI card copy or your PIO card copy if it states your current address. You can use an original bank statement stating your address or an e-statement that is attested by the bank. If you do not have any of these, then you will need to use a utility bill or another form of address proof and have it APOSTILLED by the Secretary of State’s office in your area.
Now for the photos: On the application, it says that you have to have a stamp size photo for PAN card, but in all reality, any passport size photo will do. It should be a front facing photo with a white background and good lighting.
If you have lost your PAN card and you are looking to apply for a duplicate or replacement PAN, then there is one more document you will have to attach to your application before sending it. You will need to provide a copy of your old PAN card. If you do not have a copy, then you can look up your PAN card number and print the page that shows your results as evidence and that will do just fine.
If you are still confused about the process on apply for a PAN card, write into the representatives at http://www.nriinvestindia.com/nri-apply-pan-card-online.html. They can help you further and as a broker, they can help you with the entire PAN card process if needed.
Good Luck NRIs!