An NRI Without A PAN? You Won't Have To Pay Higher Taxes Now

When it took charge in 2014, the Prime Minister Narendra Modi-led government at the Centre set ambitious targets and increasing foreign investments in India was one among them. Since then, the Centre has been making all the efforts to make this possible — from easing rules to making new ones. Now, in a recent move the government's tax department has announced that having a PAN (permanent account number) card is no more a must for non-resident Indians (NRIs) investing in India. This move is likely to push more NRI investment in Indian real estate, which is going through a tough time at present.

Earlier, under Section 206AA of the Income Tax (I-T) Act, if an investor didn't have a PAN card, he was liable to pay 20 per cent as TDS (tax deducted at source) on “interest, royalty, fees for technical services and payments on transfer of any capital asset”. This forced NRIs to apply for a PAN card, making the investing process much lengthier.

According the new rule, 37BC, notified by the Central Board of Direct Taxes (CBDT), an NRI investor will have to furnish his personal details — e-mail id, contact number, residential, tax residency certificate from the country of his residence — if he does not have a PAN card.

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