PAN (permanent account number) is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. An NRI need to obtain a PAN under following scenarios:
- If an NRI needs to open a bank account.
- If NRI has got a taxable income in India.
- As per SEBI, any NRI who wishes to do the share trading, through depository or by broking.
- If an NRI wishes to invest in Mutual Funds.
- PAN Card is also mandatory when an NRI wants to open an NRO or NRE account.
- If an NRI wants to purchase some land or other property in India other than trading then also it is mandatory to have PAN card.
- Since the demonetization drive from Nov 2016, it has become mandatory to provide PAN number for any banking or financial transactions. In other words, anyone who needs to have a bank account and conduct banking or financial transactions, need to mandatorily have a PAN number.