Is PAN Card Mandatory for NRIs? A Complete Guide

In today’s globalized world, many Indians have moved abroad in search of better opportunities, leading to an increase in the number of Non-Resident Indians (NRIs). As an NRI, you might wonder whether a Permanent Account Number (PAN) card is mandatory for you or not—especially when dealing with financial matters in India.

In this detailed guide, we will explore the necessity of PAN for NRIs, its benefits, when it becomes mandatory, how to apply, and a handy AO Code table for NRIs.

What is a PAN Card?

The PAN (Permanent Account Number) is a 10-digit alphanumeric identifier issued by the Income Tax Department of India. It is essential for:

  • Filing income tax returns

  • Opening bank accounts

  • Investing in the stock market

  • Buying or selling property

  • Conducting high-value financial transactions

Is PAN Card Mandatory for NRIs?

No, a PAN card is not mandatory for all NRIs. However, it becomes mandatory under certain conditions, especially when you have financial dealings in India.

When is PAN Card Mandatory for NRIs?

NRIs are required to obtain a PAN card if they:

  1. Earn income in India (e.g., rent, dividends, capital gains, business income).

  2. Invest in stocks or mutual funds in India.

  3. Open an NRO (Non-Resident Ordinary) bank account.

  4. Purchase or sell immovable property in India.

  5. Have taxable income in India.

  6. Make deposits above ₹50,000 in a bank account.

  7. Start a business or company in India.

If an NRI falls under any of the above categories, having a PAN card becomes mandatory under Indian income tax laws.

Benefits of PAN for NRIs

Having a PAN card offers several advantages for NRIs:

  • Avoid higher TDS: Without PAN, TDS (Tax Deducted at Source) can be charged at a higher rate.

  • Ease of investment: Essential for investing in Indian mutual funds, stocks, or bonds.

  • Property transactions: Required for buying or selling property in India.

  • Business registration: Needed to start or run a business entity in India.

  • Opening bank accounts: Required for opening NRO or NRE accounts in many cases.

  • Income Tax Return Filing: Crucial if your Indian income exceeds the tax exemption limit.

Who Can Apply for PAN as an NRI?

Any NRI who needs to conduct financial transactions or has taxable income in India can apply for a PAN card. Both Indian citizens residing abroad and Foreign Citizens can apply under different categories.

Categories:

  • Indian Citizen – NRI: Apply under "Individual" category.

  • Foreign Citizen – NRI: Apply under "Foreign Citizen".

You must submit valid identity proof, address proof, and photographs along with Form 49A (for Indian citizens) or Form 49AA (for foreign citizens).

How to Apply for a PAN Card as an NRI?

You can apply online through:

Documents Required:

Document TypeIndian Citizen NRIForeign Citizen NRI
Identity ProofPassportPassport / OCI / PIO card
Address ProofOverseas address in passportBank statement or utility bill (foreign address)
Photograph2 passport size photos2 passport size photos
FormForm 49AForm 49AA

Once approved, the PAN card will be sent to your foreign address (if selected during application) or Indian correspondence address.

NRI AO Code for PAN Card Application

The AO (Assessing Officer) Code is essential for PAN applications. It tells the Income Tax Department under which jurisdiction your PAN falls.

Here is a table of AO Codes specifically for NRIs:

📌 Use this AO Code when applying online in the AO Code section.

AO Code Table for NRI Applicants


Area CodeAO TypeRange CodeAO No
DLCC351



Do NRIs Need a PAN Card?

The PAN card is not mandatory for all NRIs. However, if you are an NRI and involved in certain financial transactions in India, then it becomes mandatory.

Situations When NRIs Must Have a PAN Card:

Sl. NoFinancial Activity in IndiaPAN Required
1Earning income taxable in India✅ Yes
2Investing in Indian mutual funds or stocks✅ Yes
3Buying property in India✅ Yes
4Opening an NRO/NRE bank account✅ Yes
5Sending money to India (for investment)✅ Sometimes
6Only remitting money to family❌ No
7Holding a bank account without income❌ No

In Short:

  • YES, PAN is mandatory if you're earning or investing in India.

  • NO, if you’re only sending money to your family or maintaining an inactive account.

Why Should NRIs Get a PAN Card?

Even when not mandatory, there are many advantages of having a PAN card as an NRI:

✅ Benefits of PAN for NRIs:

  • Required to avoid TDS deductions at higher rates

  • Essential to open trading or demat accounts

  • Needed to purchase real estate

  • Allows income tax refund processing

  • Helpful for property sale or rental income

If you don’t have a PAN, TDS (Tax Deducted at Source) can be cut at 20% or even more, while with PAN, it could be 5% or lower, depending on Double Tax Avoidance Agreement (DTAA).

How Can NRIs Apply for a PAN Card?

You can apply online or offline, from India or abroad.

✅ Online PAN Application for NRIs:

  1. Visit https://tin.tin.nsdl.com or https://www.pan.utiitsl.com

  2. Choose Form 49AA (for foreign citizens)

  3. Fill your personal details

  4. Upload passport copy, foreign address proof, and photo

  5. Pay the fee (Approx. ₹1020 for foreign address)

  6. Submit and get PAN delivered

What is an AO Code for NRI?

While applying for a PAN card, you must enter the correct AO Code (Assessing Officer Code). This code determines your tax jurisdiction.

For NRIs, there are dedicated AO codes based on your citizenship and location.

🔍 For most NRIs, “NRI” AO Code works when applying online on NSDL or UTIITSL portal. But you can also select region-wise AO codes based on your location or preference.

Tips for NRIs Applying for PAN

  1. Use an international courier address if you want the PAN card shipped abroad.

  2. Keep all documents notarized or attested by the Indian embassy if applying offline.

  3. Track the status online after submission via the acknowledgment number.

  4. Use the correct AO Code to avoid delays or rejections.

  5. Use a trustworthy portal or service provider if applying through an agent.

FAQs on PAN Card for NRIs

Can I apply for a PAN if I live in the USA?

Yes, you can apply online with a foreign address, and your card will be delivered internationally.

 Is Aadhaar mandatory for NRI PAN?

No. Aadhaar is not mandatory for NRIs during PAN application.

 Do NRIs need to file income tax in India?

Only if your total Indian income exceeds ₹2.5 lakh in a financial year.

How long does it take to get a PAN?

Generally, 10–15 working days after document verification.

Can NRIs Use PAN to File Tax in India?

Yes, if your income in India exceeds the basic exemption limit (₹2.5 lakh for individuals), you need to file an income tax return in India using your PAN.

Even if your income is below the taxable limit, filing an ITR can help in:

  • Claiming TDS refund

  • Getting income proof for visa purposes

  • Maintaining financial records in India

Conclusion

To sum up, while a PAN card is not mandatory for every NRI, it becomes essential if you have financial, business, or investment activities in India. Applying for a PAN is now easier than ever, with online options and international courier delivery.

With a PAN card, NRIs can manage their Indian financial matters seamlessly, avoid higher taxes, and maintain compliance with Indian laws.

Quick FAQs

Q. Can an NRI open a bank account in India without PAN?
A. Only NRE accounts can sometimes be opened without PAN, but most banks require PAN for NRO accounts.

Q. Do NRIs need to link PAN with Aadhaar?
A. No, Aadhaar linking is not mandatory for NRIs.

Q. Is physical PAN card needed, or e-PAN is enough?
A. e-PAN is valid, but a physical PAN card may be needed in some transactions.

If you're an NRI and unsure whether you need a PAN card, assess your Indian financial activities. In most cases, having a PAN is a smart choice that ensures smooth financial operations and legal compliance.