Individuals or entities, including those belonging to foreign countries, earning taxable income in the country are required to have a unique Permanent Account Number. The government stores all income and tax-related information of a person or entity against this alphanumeric code.
Go through these sections to get a detailed idea about PAN card eligibility.
The eligibility criteria and supporting documents needed for the application of a new PAN card are different for Indian citizens/entities and foreign individuals/companies.
Indian citizens or organisations have to use Form 49A while applying for a PAN. The basic eligibility criteria for Indian individuals and entities to apply for a PAN card include the following:
Foreign citizens and entities can also apply for a PAN card. However, they need to file Form 49AA. They have to fulfil the following PAN card eligibility criteria and provide these supporting documents:
Alternatively, a copy of the registration certificate attested by Indian Government authorities will suffice.
Before initiating the PAN card application process for an individual, company, or any other entity, make sure that you fulfil the PAN eligibility criteria. Also, adhere to all necessary guidelines to ensure a hassle-free process.
Ans: Applying for a PAN card is not compulsory for the following:
• Minors usually do not require a PAN. However, they can use their parents’ or guardians’ PAN.
• Individuals with no taxable income may not need to apply for a PAN card.
• NRIs do not need a PAN card for specific transactions.
Ans: A PAN card is essential for the following purposes:
• For opening a bank account or depository account
• Serves as an identity proof
• To file tax returns
• For loan applications
• To purchase immovable assets worth more than Rs. 5 lakh
• For an investment of more than Rs. 50,000, etc.
Ans: PAN card is usually obtained after the age of 18. However, today you can get a PAN for a child below 18 years. In such cases, the guardian, parents or a representative has to apply for the PAN card on behalf of the minor.
Ans: No, individuals can open a bank account without a PAN card by filing Form 60. That said, note that a PAN card is necessary to carry out almost every high-value financial transaction. The Income Tax department has made it mandatory to link your bank account with the PAN. This is necessary as the IT department will send your tax returns to your bank account.
Ans: Foreign entities or individuals can use the following documents as address proof for applying for a PAN:
• Bank account statement from the country of residence
• Bank statement of the NRE account in India
• Copy of visa or a copy of a letter of appointment or contract issued by an Indian firm
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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