PAN Card –  Useful Information

by | Dec 17, 2022 | Indian Law, Indian Law Weekly Round-Up, NRI Legal Services, OCI, PAN, Power of Attorney

In view of our last segments discussing PAN Card for NRI, OCI, we look at some further useful information that may apply to you. If you’ve missed the most recent segments, you can read them here – Form 49AA, Avoid mistakes.

As an NRI, OCI, Non resident of India with financial transactions in India, PAN is a mandatory requirement. Where you exceed the allowed financial transaction threshold you will need to ensure that you have a PAN. 

Let’s look at some further information that may be useful in applying for a PAN and once you obtain one.

1. Validity of PAN Card

​​Your PAN card once obtained is valid for life-time of the PAN-holder throughout India. It will not be affected by change of address or change of Assessing Officer etc.

However, any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be provided to the Income Tax Department by completing the details in the form for “Request For New PAN Card Or/ And Changes or Correction in PAN Data.”

You will also need to update your PAN Card information if you change address in India. For example, if you move from one state to another as the jurisdiction would change. The AO would also be as per your new jurisdiction.

Another example would be, if you’re an NRI, OCI and you relocate your home from one state to another. You would need to update your address details for AO jurisdiction purposes. 

2. Update PAN Card Details – Mistakes & Errors

You should avoid making mistakes in your PAN application as it will take longer for you to obtain your PAN. However, where you need to update your PAN, if any change in the PAN database (i.e. details provided at the time of obtaining PAN), then it should be made aware to the Income-tax Department. Use the following form, titled –  “Request For New PAN Card Or/ And Changes or Correction in PAN Data.” 

You can apply for correction in the following ways;

  • Online Form – Request For New PAN Card Or/ And Changes or Correction in PAN Data
  • Offline Form – ​​”Request For New PAN Card Or/ And Changes or Correction in PAN Data

An NRI, OCI would make any updates to their PAN card in the same manner.

3. Associated Penalty For NON PAN Compliance

Under the Government of India, Section​ 272B states a penalty in case of default (non compliance) by the taxpayer in complying with the provisions relating to PAN. The instances that the penalty would apply are as follows;

  • Not obtaining PAN even though one is liable to obtain PAN. 
  • Knowingly quoting the incorrect PAN in any prescribed document in which PAN is to be quoted.
  • Providing the incorrect PAN to the person deducing tax or person collecting tax. 

What is the penalty?

  • Penalty of Rs. 10,000 under se​ction 272B can be levied for failure to comply with the provisions of section 139A​.
  • Penalty of Rs. 10000 per default shall be levied for failure to Quote or to Quote invalid PAN.

4. One PAN – One Individual 

You cannot hold more than one PAN card. Under the Government of India Guidelines it is illegal to maintain more than one PAN card. Subsequently, a genuine error sometimes can happen. If you have made an error then you should follow the guidelines set out by the Income Tax Department and correct the error.

Where a PAN is allotted to a person, then he cannot apply for obtaining another PAN. A penalty of Rs. 10,000/- is liable to be imposed under​​ Section 272B​ of the Income-tax Act, 1961 for having more than one PAN.

If a person has been allotted more than one PAN then you should immediately surrender the additional PAN card(s).

5. A Key Benefit of PAN 

Your PAN ensures that you pay any tax at the correct rate as well as any considerations that may be due. This would only apply to you if you have to file income tax in India. 

For example, if you’re an NRI, OCI and have sold property in India, you are liable to ensure any tax formalities, banking prerequisites and the like are met. For this you would need to ensure that you have your PAN ready.

Therefore, yes, your PAN should be provided to the deductor i.e. person deducting tax. From 1st April, 2010, non-furnishing of PAN to deductors results in TDS at much higher rate of 20% or even more. Applying default rates 20%+ to larger sums can become a considerable amount.

If you require assistance in applying for your PAN from abroad we can assist – NRI PAN Application Services

To summarize, it is clear that the PAN card is an important part of financial transactions in India for both Indian Nationals as well as for Indians abroad. Your transactions may involve general day to day financial and movable/immovable property related matters in India. It would be in one’s best interest to obtain their PAN.


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Related Services

We can also assist with the following NRI Services in London:

  • Illegal occupation of property in India
  • Family Settlements and partition of NRI Indian property
  • Ancestral real estate and inheritance advisory under Indian law
  • NRI Property Transfer
  • Possession of NRI Property
  • Recovery of NRI money under Indian Law
  • NRI Succession Certificate in India
  • Injunction against alienation of NRI property in India
  • Developer Claims under the Consumer Protection Act in India
  • NRI property disputes
  • Visas to India
  • Indian Power of Attorney
  • NRI PAN  Card
  • Overseas Citizenship of India (OCI)
  • Inter-Country Adoption
  • Divorce proceedings under Indian Law for parties settled abroad

Frequently Asked Questions

What is an E-PAN?

An E-PAN is the PAN provided in PDF format rather than the physical card. The E-PAN in PDF format will be sent to the e-mail ID mentioned in the PAN application form.

I do not need a physical PAN. How can I obtain an E-PAN?

If the physical PAN Card is not required then PAN applicant will have to indicate at the time of submission of PAN application.

How will I receive my E-PAN?

Email ID will be mandatory & E-PAN will be sent to the PAN applicant on the email ID.

If I apply for PAN from abroad can I submit my supporting documents online?

At present the portal does not provide this facility, therefore you would need to post for processing.

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