Is it really important for a NRI and company having no establishment in India? - Tax Information

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Wednesday 18 October 2017

Is it really important for a NRI and company having no establishment in India?


 Is it really important for a NRI and company having no establishment in India?

It is not compulsory for every person to get a PAN, especially if you do not file income tax returns or not engage in any large financial transactions. However, if you do so, it is necessary to get a PAN card. Finally, you can get PAN card even if you do not file tax returns and do not need it for investment purposes. 
However, having one always enhances your credibility in the eyes of the Government and other financial institution, that will in turn make it easy for you to qualify and get various types of loans and mortgages.
You will require it for the following purposes:
  • It is necessary to give the PAN card number when you buy or sell immovable properties in India.
  • When you buy automobiles, you will have to give this number.
  • Buying banker’s draft, pay orders and checks require PAN card.
  • If you buy shares or debentures exceeding the value of Rs. 1 lakh, you need to supply the PAN card.
  • PAN card is necessary to make any deposit exceeding Rs. 50000.00.
  • PAN card is also necessary for initiating a bank account, starting a demat account or applying for a credit card.
  • Finally, you may produce the PAN card as a valid photo ID proof.

 Advantages to the Income tax authority!

The PAN was launched to estimate the total tax generated in the country so that the rate of taxation can be fixed properly. The advantage of the PAN to the income tax department is that it helps to track all your financial dealings and therefore fix the rate at which you (or a company) should be taxed. It is a useful tool to estimate the total tax revenue being generated in the country.

The benefits that you can enjoy for having a PAN card are as follows:
  • The PAN card carries your photograph, name and address. Hence it serves as a nationally accepted proof of identity.
  • Without a PAN card, you will be taxed at the highest rate possible. If you pay TDS (tax deducted at source), that cannot be counted without a PAN card and you may end up paying tax twice.
  • The PAN number is unique to every PAN card holder. Your name and address may change; your card may get lost or stolen; but the PAN will remain unchanged. So, the possibility of misuse is rare.
  • As an ID proof, the PAN card is sure, dependable, nationally recognized and unchanging.
  • With a valid PAN card, you can easily enter into different financial transactions. You can obtain landline and cell phone connection; you can open demat account; you can buy and sell property and share and much more.
  • If you are NRI, you can easily buy property or engage in business in India with the help of your PAN card without filing tax returns.
  • A minor account can be opened and operated easily with the PAN card of the guardian.
  • Not only does the PAN have all these great advantages, but also it is necessary to carry on most of the normal transactions. The process has been highly simplified. So, you should make no delay in getting your PAN card.

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