Indian PAN card - KYC details? Any help appreciated.

Hi

Has anyone applied for their Indian PAN card (Permanent Account Number) recently? When i left India way back in 2000, it was not a concept at all then (or may be was not compulsory at least).

The application form (for foreigners – 49AA?) asks for the applicant to fill up a section called “KYC” (Know your customer).
As per the detail / guidelines there, any foreigner (individuals as well, not only companies) are categorized as Institutional Investor and hence need to fill up this KYC section. This is even without considering the fact that you may not even want to invest in India, but since one may hold more than Rs. 50,000 in a bank account (which most of us do), then we are within the definition of Institutional Investor, and hence have to fill up the KYC details.

This is ok, but it asks for details of applicant’s “Net worth” (all his/her assets located anywhere in the world “minus” all his/her liabilities), and also gross Annual income, and from which employer etc.

Does anybody know if these details are mandatory please? It looks like too much information to give out to them.

I am not sure if any foreigner would disclose this much personal information to Indian Govt. just to get a PAN card – which apparently looks like even a basic foreign tourist will need to get a PAN card if they are going to spend more than Rs. 25,000 in Indian Hotels while they travel there (obviously most of them will spend that much in a tourist trip??)

Sounds like a draconian law!!

Anybody with any information on this please?

quantumscience wrote:..– which apparently looks like even a basic foreign tourist will need to get a PAN card if they are going to spend more than Rs. 25,000 in Indian Hotels while they travel there (obviously most of them will spend that much in a tourist trip??)

where did you find this info?

Well this is in every PAN card application details site, including the Indian govt. authorized PAN card application accepting institutions like UTI, et al.

All the details are here:

http://www.utiitsl.com/utitsl/site/pan.jsp

http://businesstoday.intoday.in/story/p ... 96107.html

Some quotes...

WHY GET A PAN NUMBER?
For payment of direct taxes
To file income tax returns
To avoid deduction of tax at higher rate than due
To enter into specific transaction such as:
(a) Sale or purchase of immovable property valued at Rs 5 lakh or more
(b) Sale or purchase of a vehicle other than a two wheeler
(c) Payment to hotels or restaurants an amount exceeding Rs 25,000 at any one time
... and the list goes on...

The above are applicable to all, whether they are Indians or foreigners.
By implication, this means PAN card is required even if they do not have any taxable income in India... unless I am terribly mistaken - honestly, I want to be completely mistaken on this whole PAN card thing though , so that i can get rid of this one from my list of TODOs from India

I will end up paying more than Rs. 50000 in India in no time to Hotels etc. (even at any one time - its possible!!!)

Now, any idea on the KYC details being compulsory on the net worth, annual income etc?

that 25K limit is only for cash transaction - you can pay any amount through card/cheque etc without needing PAN.

OK, so still people will need to get the PAN in one case or the other.

So getting back to my original point, then for those of us PIOs and OCIs, who could be depositing more than 50,000 in Indian banks or doing other such transactions that require PAN card (one day or the other we will be doing one of those transactions certainly), what is your interpretation of that KYC requirements in the 49AA please? Do you think i could skip filling up those bits of details, in spite of the fact that they consider us to be Institutional investor anyway.

Please read through and let me know your thoughts on the KYC section please. That will be really helpful. I have not found any info on this specific bit on the internet as yet.

Sorry I have limited knowledge on income tax matters. I will leave others to comment or better check in tax related discussion forums.

From personal experience - my colleagues and I often travel to India on work trips. The hotel bills are normally 5-10x the 25K limit. We were never asked for PAN. However for large financial transactions especially dealing with banks you must need to have a PAN.

Ban.s,

When I needed a PAN card to open a demat account, I called up a friend who got it delivered to my place for INR500/--

I am told it has become extremely difficult nowadays, with address proofs and numerous checks in place. Not only that you could get multiple cards organised on the fly in the past.

I also remember they came up with something called TIN in 2005. Not sure what has happened to that.
cheers
vr

It appears that is better to obtain PAN card before gaining British Citizenship. Only form 49A will be required.

I am wondering if I can get a PAN card before I surrender my Indian passport? Technically I will become a British Citizen tomorrow.

RBI is getting strict with KYC and recently fined HDFC and ICICI quite heavily for their non compliance.
I received my PAN in back in 1999/2000 and I have no idea how things have changed in the recent past. Perhaps it's time for me to check if I needed to update any records etc.

Guys,

I have had a detailed chat with one Chartered accountant in my home city in India about all this.

Quite a bit there is to digest, but as a summary of it all is...

He says it is compulsory to apply and get a PAN card, otherwise I won't be able to do practically anything there - including opening bank accounts, depositing money, buying properties, car/vehicles, apply for phone (even mobile phone), buy insurance, buy computes/laptop etc... literally nothing can be done without PAN.

Also on the KYC details - it is a MUST for PIOs and OCIs.

Well, one more journey to commence now...! PAN card

VR - What is this TIN thingy??????
One other Indian card we need to apply for????

I will apply for PAN card before I surrender my Indian passport. Just form 49A and no KYC (no idea what KYC is though).

I have an NR account with HDFC. I don't know what exactly its called, but its in rupees. It hasn't got more than 10 lacs in it, so I guess I will be ok.

Go for it KFC.................
cheers
vr