As per the Income Tax Department of India, even if you are a NRI living abroad who wishes to do Investment in India or carry out any financial transaction, it is mandatory that you should have a Permanent Account Number.
It’s difficult to explain advantages of having a permanent account number.
• PAN number is used as an Identity proof for showing your relation to India. You should have a pan card, even if you don’t file taxes in India.
• Quoting a PAN is important while selling or purchasing any property, which is more than 5 lakh. If there are more than a single owner Pan of all the partners should be written in the document. In case of nominees PAN should be the original owner’s.
• Selling and buying of vehicles apart from two wheelers also requires PAN.
• A deposit made in any banks where the amount is more than fifty thousand also requires PAN. It is a responsibility of the official to collect the PAN during the deposit.
• Any kind of demat accounts, shares, mutual funds, buying or selling of securities for an amount above one lakh also needs a PAN.
• Demand drafts, cheques given for more than fifty thousand also needs the PAN to be mentioned.
• Money spent during a travel or stay in abroad also needs a PAN.
• Obtaining new telephone or mobile phone service.
• Bills paid to motels and resorts in a single point of time which is more than twenty five thousand.
• New accounts opened in a bank.
• Issue of a new credit card.
• A new account opened in banks for minors requires their father/mother/guardians PAN to be noted.