Difference Between NRI PAN Card and Normal PAN Card

Whether it is about the Indian residents or the Non-Resident Indians, a PAN Card is an essential document to manage finances and to invest in India. The normal PAN card is issued to Indian residents, and the NRI PAN Card is issued to NRIs. The physical appearance of both PAN cards is exactly similar, but the only difference is their residential status. The NRIs who are living outside India for various purposes, like education, work, residing, etc., can face some difficulties in managing their financial activities in India, but a PAN card helps in managing them in a single, traceable thread.

In this blog, we are going to discuss the difference between the NRI PAN Card and the Normal PAN Card, their benefits, and importance. We have also mentioned the documents required to obtain the PAN card and the application process for both Indian residents and NRIs. Stay with us till the end and get educated about the PAN cards.

Key Takeaways

• The physical structure of an NRI PAN Card and a Normal PAN Card is exactly similar; the only difference is their residential status.
• PAN cards are used to manage and trace all the financial and tax-related activities.
• It works as an identity verification card and simplifies all your transactions.
• NRIs can easily manage their investments, properties, and stay compliant with Indian laws with a PAN card.
• Apply online easily by visiting the NSDL website.

What is an NRI PAN Card?

The NRI PAN Card is a necessary document that is used as an identity card for tax purposes for those Indians who are not living in the country. It is made for those Non-Resident Indians (NRIs) who are living in a foreign country for different reasons, such as education, work, or residence. 

Although the PAN (Permanent Account Number) is the same for everyone in the structure and validity, it is assigned to those NRIs who take part in investment or financial activities in India. 

These activities include buying property, managing bank accounts, investments, or any transaction that needs a tax account number in India. The NRI PAN card ensures and continuously reminds the NRIs that, despite their physical absence from India, they will remain in the taxation and financial loop of their home country. 

What is a Normal PAN Card?

A normal PAN card is issued to those individuals who are residents of India and are its citizens. It is an identification number unique to all individuals and used to trace the financial and tax-related activities of Indian citizens in a single thread. These activities include purchasing assets, receiving a salary, and bank transactions. 

Difference Between a Normal PAN Card and an NRI PAN Card

Here are the key differences between a normal PAN card and an NRI PAN Card according to the various criteria: 

PAN Card Advantages

A PAN Card has many benefits, and it is vital for various reasons:

• Management of Taxes: PAN Card is used as a unique identity card, which helps in tax filings and tracking past financial records. 
• Easy Transactions: It is necessary to make stock market investments, do property deals, and engage in mutual funds.
• Identity Verification: For many services, it is universally accepted as a proper identity proof. 

Why is the NRI PAN Card important?

Apart from all the benefits mentioned above, there are many other reasons for which an NRI PAN Card is important and benefits NRIs. Here are a few of them:

• Management of Property: As an NRI, if you want to buy or sell any property in India, then you must have a PAN Card. It is considered an important document to ensure that the transactions are executed legally and smoothly. 
• Smooth Financial Investments: If you have a PAN card, then you will be able to easily invest in the stock markets of India, mutual funds, etc. These investments provide better returns than the other markets.
• Being compliant with tax laws: A PAN Card for NRIs ensures that they are complying with the Indian tax laws for their income from India. It is necessary for NRIs as it can affect their tax liabilities and their legal standing.
• Easy Bank Account Opening: NRIs need a PAN card to open an NRO (Non-Resident Ordinary) and NRE (Non-Resident External) bank accounts in India. These NRI accounts really help them in managing their earnings in India as well as abroad. 

Application Process: NRI PAN Card vs Normal PAN Card

The application process for the PAN Card for both the NRIs and the residents is given below: 

Application process for an NRI PAN Card

The application process for a PAN card for NRI applicants is very easy, and it is designed in a way that it can be completed from anywhere in the world: 

1. Start the process by visiting the TIN-NSDL website. 
2. Fill out the form 49A and upload all the necessary documents.
3. Attach the digital copies of address proof, identification, age proof, and a recent photograph.
4. Then, process the payment for the application fee. 
5. Now, print the acknowledgement receipt to monitor the status of your application. 

Application process for a Normal PAN Card

For a normal PAN card, there are two ways of applying: online or in person.

Online Application: 

1. The Indian residents can start the process by visiting the NSDL website.
2. Verify yourself by entering your Aadhaar number. 
3. Fill out the online form very carefully and make sure that all the details are correct before submitting the form. 
4. Pay the application fee online. 
5. You will be issued with an acknowledgement number, which is 15 digits. You can use this number to track the status of your application. 

Offline Application: 

1. Start the process by applying on the NSDL website and filling out the application form. 
2. Upload all the documents and sign the application form in all the designated places. 
3. Now, send the completed application form and all the documents to the specified PAN service centres as listed on its official website. You also have to submit a cheque and a demand draft for the processing fee. 

Documents Required for NRI PAN Card

There are several documents that NRIs need to submit to prove their identity and their residency in a foreign country. With these documents, they can apply for the NRI PAN Card and link it to the financial system of India: 

• Identity Proof: A copy of your valid passport. 
• NRI Status Proof: It requires the proof of NRI status, including an OCI or PIO card. 
• Overseas Address Proof: You can submit any one of these: Bank statement in the country of residence, NRE account statement in India, Resident permit copy, overseas driving license, or a government-issued ID card that represents your residential status.
• Photographs: Two recently clicked photographs, which are passport-sized. 

Documents Required for PAN Card in India

If you want to receive a PAN Card in India, then you need to gather some of the official documents that help to establish your address, identity, and age for an easy application process. Here is the list: 

Proof of Address

•  Passport copy
•  recent utility bill
• government-issued domicile certificate
• copy of driving license
• bank passbook/statements

Proof of Identity

• Copy of a passport
• Aadhaar card
• Driving license
• Voter ID card
• Pensioner Card

Photographs: You will need two recent passport-sized photographs. 

Proof of DOB: It includes a passport, a birth certificate, or a matriculation certificate. 

How Can Visament Help? 

Whether you are a resident Indian or an NRI who wants to invest in their home country, obtaining an appropriate PAN card can simplify most of your financial transactions and legal obligations. To manage them more smoothly, you need to open the NRI bank accounts, such as the NRE account and the NRO account. You can also take expert assistance from the online service providers, like Visament, to stay compliant with the Indian laws. 

At Visament, we have a team of professionals who have been working in this field for many years and have in-depth knowledge about it. They can help you get your PAN card by applying correctly and submitting the accurate documents for it. They are available on the website 24/7 and help the customers very patiently. The services on our website are very affordable, and you can use them to your advantage.