PAN for NRIs — Application, Form 49AA & Uses | Savlana Init

NRI Taxation · Permanent Account Number

Permanent Account Number — The Number Everything Hangs On.

Without a PAN, tax is deducted at the higher rate, refunds cannot be claimed and most Indian transactions simply stop. We obtain, correct and manage PAN for non-residents.

The Permanent Account Number is a ten-character alphanumeric identifier allotted by the Income Tax Department under Section 139A of the Income Tax Act, 1961. For a non-resident it is not merely a tax registration but the operating key to the Indian financial system: no NRO or NRE account is opened without it, no demat account is activated, no property is registered, no mutual fund investment is processed, and no return can be filed or refund claimed. A single number, linked to a single person, for life.

The consequence of not holding one is expensive rather than merely inconvenient. Section 206AA requires that where the recipient of a payment does not furnish a PAN, tax is deducted at the highest of the rate specified in the Act, the rate in force, or twenty per cent — and a treaty rate cannot be invoked to displace it. Rule 37BC provides a narrow relief for non-residents receiving interest, royalty, fees for technical services or consideration for transfer of a capital asset, where the payee furnishes name, email, contact number, address, a Tax Residency Certificate and the tax identification number of his home country. Outside that relief, the higher rate applies and can only be recovered by filing a return.

Non-residents apply on Form 49A where they hold Indian citizenship, and on Form 49AA where they are foreign citizens or foreign entities. The forms differ in documentation, in the address that may be recorded and, for Form 49AA, in the additional KYC information required under the securities-market rules. Applications are processed through the authorised service providers, and errors in name spelling, date of birth or father’s name — which block e-filing and refund credit later — are far cheaper to prevent than to correct. We handle application, correction, reissue and the ongoing linkage of PAN to accounts and portals.

Our PAN Services

New PAN Application — Form 49A

Application for Indian citizens residing abroad, including document preparation, attestation guidance and overseas address recording.

New PAN Application — Form 49AA

Application for foreign citizens, OCI cardholders holding foreign passports, and foreign entities, including the additional KYC information required.

PAN for Foreign Companies and LLPs

PAN applications for non-resident entities with Indian income or Indian transactions, coordinated with TAN and e-filing registration where needed.

Correction and Reissue

Correction of name, date of birth, father’s name, photograph, signature or address, and reissue of a lost or damaged card in physical or electronic form.

Duplicate PAN Surrender

Identification and surrender of a second PAN inadvertently allotted, which otherwise attracts penalty and creates credit mismatches in Form 26AS.

Section 206AA and Rule 37BC Support

Assembly of the alternative documentation set that allows treaty rates to be applied where a non-resident has no PAN.

Aadhaar Linkage Advisory

Assessment of whether the PAN-Aadhaar linking requirement applies to you and what to do where a PAN has been rendered inoperative.

E-Filing and Bank Linkage

Registration of the PAN on the income tax portal, linkage to NRO and NRE accounts, and pre-validation of the account for refund credit.

Our Process

Eligibility and Form Selection

We confirm whether Form 49A or Form 49AA applies based on your citizenship and entity type, and identify the address that may lawfully be recorded.

Document Preparation

Proof of identity, proof of address and proof of date of birth are assembled, with the attestation, apostille or embassy certification appropriate to your country.

Application Filing

The application is submitted through the authorised service provider with correct name formatting, since a mismatch here causes rejection or later e-filing failure.

Tracking and Allotment

We track the acknowledgement to allotment, respond to any objection raised, and obtain the e-PAN and the physical card where despatch abroad is available.

Activation and Linkage

The PAN is registered on the e-filing portal, communicated to banks, brokers and deductors, and linked to a pre-validated account for refunds.

Why It Matters

✓Avoids the twenty per cent floor rate under Section 206AA

✓Preserves the ability to claim reduced treaty rates on Indian income

✓Required to file a return and to receive any refund at all

✓Mandatory for NRO, NRE and demat account opening

✓Needed for property registration and high-value transactions

✓Correct name and date of birth recorded, preventing later portal failures

✓Duplicate PAN identified and surrendered before penalty arises

✓Rule 37BC route mapped where a PAN genuinely cannot be obtained

Frequently Asked Questions

It is not mandatory merely because you are a non-resident, but it becomes mandatory the moment you have Indian income or transactions. PAN is required to file a return, to claim a refund, to open NRO, NRE or demat accounts, to buy or sell immovable property, and for specified high-value transactions under Rule 114B. Without it, tax is deducted at the Section 206AA rate on most payments.

Form 49A is for Indian citizens, including Indian citizens residing abroad. Form 49AA is for foreign citizens, foreign entities and individuals holding a foreign passport, including OCI cardholders who have taken foreign citizenship. Form 49AA carries additional know-your-customer fields required under the securities market regulations, which Form 49A does not.

Typically a copy of the passport as proof of identity and date of birth, and proof of address — an overseas bank statement, a copy of the residence permit, an overseas driving licence, or a certificate of address issued by the employer or the Indian mission. For foreign citizens the OCI card or the copy of the visa is also relevant. Documents generally require attestation by the Indian embassy, consulate, high commission or an apostille.

Section 206AA requires deduction at the highest of the rate in the Act, the rate in force, or twenty per cent, and treaty relief cannot override it. Rule 37BC creates an exception for non-residents receiving interest, royalty, fees for technical services or consideration on transfer of a capital asset, where the payee furnishes name, email, contact details, address, a Tax Residency Certificate and the home-country tax identification number.

The linking requirement is directed at persons eligible to obtain Aadhaar. A non-resident who is not eligible for Aadhaar is outside that requirement. In practice a PAN is sometimes marked inoperative because the department’s records still show the holder as resident; the remedy is to have the residential status updated in the PAN database with supporting evidence so that the PAN is restored.

No. Holding more than one PAN is prohibited and attracts penalty under Section 272B. Duplicates commonly arise where an application was made years earlier and forgotten, or where an application was resubmitted after apparent failure. The correct course is to retain one PAN, surrender the other formally, and reconcile any TDS credits that were reported against the surrendered number.

Need a PAN as a non-resident, or a correction to an existing one?

We select the right form, assemble and attest the documents, file the application and track it to allotment — then link it to your accounts and the e-filing portal.