How to Get a Permanent Account Number (PAN) Card for Income Tax Purposes in India

Many Indian citizens, living in the U.S. have started investing their money in India recently in view of high interest rates. The interest rates in government banks and bonds are 8 to 9 % in India as compared to around 4 % in the U.S. However, the investors have to fulfill some basic requirements before making any investments in India over $50,000. One requirement is to present a Permanent Account Number Card, most commonly known as PAN card in India, while making the investments. It has become necessary to issue such PAN cards for all the Indian citizens. I am going to cover the procedure for getting the PAN cards for income tax purposes in India in this article.

The individual can apply for such PAN card from India as well as from abroad. This PAN card has become like an official identification card in India. This card is demanded in India at almost all the places while doing shopping or investment of more than Rs.50000. It is advisable to get such cards issued by all the Indian citizens and even by USA citizens having their origin and the investments in India. The items required to apply for PAN card are two colored photographs of your frontal face, the proof of your residential address, the processing fees as specified, and the application form duly filled in. The documents like telephone bills, house tax bills, water tax bills, bank passbooks, voter's card issued by government of India, and the official Indian passport are acceptable as the proof of your residential address.

The application form is quiet simple and requires details like your and your spouse's full names as it appears on the official record, the exact birth date and the birth place, and the detailed postal address as it appears on the official documents submitted as proof of address. There are many private agencies appointed by the government of India to issue such PAN cards on behalf of the income tax department. The detailed list of all such agencies pertaining to your area can be easily obtained from the income tax office of your city. You will have to either mail or hand over these documents with two photographs along with the check for the specified fees to such appointed agencies. It is suggested to mail such application forms by registered A/D so as to have proof of the receipt of your application by the income tax department.

The individual may need to mention this receipt number while filling in the income tax return form if PAN card is not issued to him. However, once the Indian citizen issues his PAN card, he is required to submit his income tax return form every year irrespective of his income. The applicant would generally receive their PAN cards by registered mail within around two weeks of reaching the application.

All the banks and the investment agents will ask for such PAN card while investing amount of more than Rs.50000 ($1200) in India. All the shops also would demand such PAN card while shopping for any items valuing more than Rs.50000. If you do not have such PAN card with you, you are not allowed to make any investment or purchase of more than Rs.50000 in India. The Indian PAN cards can also be got issued while you are in the USA through city bank and other investment agents situated at the USA by submitting the same documents and photos along with the fees of $100. It may take around two months for the receipt of such cards directly at your USA address. Some of such agencies may not charge any fees for issue of such PAN cards from you if you make the investments through them.

It is really high time that each and every Indian citizens of India must get such PAN cards issued at the earliest. I would suggest all my AC friends and readers to take urgent action in the matter. In case of any doubts, they are all free to contact me.