PAN requirement for NRI

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Sandeep Keswani (Querist)
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08 June 2010 Pls tell me whether an NRI is required to get a PAN for following transactions - IF HE DOES NOT HAVE ANY TAXABLE INCOME IN INDIA.

1) Opening NRI Account
2) Purchasing Airline tickets in cash exceeding Rs. 20000/-
3) Making other misc purchases (not property) in cash exceeding Rs. 20000/-

Also pls tell me when an NRI is required to compulsorily get a PAN.

Where do I get to read any provision regarding the same.

kantijain

kantijain (Expert)
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08 June 2010 Dear sandeep,

Answers to ur queries can be found in sec 139A read with rule 114 other relevant notification in this regard:
The relevant extract of Act is as follow:
"139A. (1) Every person,—
(i) if his total income or the total income of any other person in respect of which he is assessable under this Act during any previous year exceeded the maximum amount which is not chargeable to income-tax; or

(ii) carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed 71[five lakh] rupees in any previous year; or

(iii) who is required to furnish a return of income under 72[sub-section (4A) of section 139; or

(iv) being an employer, who is required to furnish a return of fringe benefits under section 115WD,]

and who has not been allotted a permanent account number shall, within such time, as may be prescribed73, apply to the Assessing Officer for the allotment of a permanent account number.

74[(1A) Notwithstanding anything contained in sub-section (1), the Central Government may, by notification75 in the Official Gazette, specify, any class or classes of persons by whom tax is payable under this Act or any tax or duty is payable under any other law for the time being in force including importers and exporters whether any tax is payable by them or not and such persons shall, within such time as mentioned in that notification, apply to the Assessing Officer for the allotment of a permanent account number.]

76[(1B) Notwithstanding anything contained in sub-section (1), the Central Government may, for the purpose of collecting any information which may be useful for or relevant to the purposes of this Act, by notification in the Official Gazette, specify, any class or classes of persons who shall apply to the Assessing Officer for the allotment of the permanent account number and such persons shall, within such time as mentioned in that notification, apply to the Assessing Officer for the allotment of a permanent account number.]"

According to me, since u r neither having any taxable income in India nor entering into any notified transation in India, no need to apply for PAN.

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