Every taxpayer who intends to enter into any economic or financial transactions or is required to file a return of income mandatorily needs to have a PAN Card. Being an active taxpayer one has to file income tax returns and to do so, they need to have a Permanent Account Number (PAN Card). PAN card consists of a PAN number allotted by the Income Tax Department of India. Talking about the PAN number, it is a ten-digit alphanumeric code, and every Indian whether resident or Non-Resident necessarily needs to have a PAN Card, if they are earning a taxable income in India. In simple words, if you are an NRI earning taxable income in India and want to file returns or make any financial transactions you mandatorily need to have a PAN Card.
However, the application process, procedure, and fees for PAN cards differ for the NRIs in Kuala Lumpur, Malaysia and resident Indians. The article will extensively discuss the need, benefits, procedures, documents required, and important clauses related to PAN Card. If you are an NRI and wandering about how to get NRI PAN Card? then this article will do value addition to your knowledge by discussing the procedure and application process.
Why an NRI in Kuala Lumpur, Malaysia needs to have a PAN Card?
NRIs in Kuala Lumpur, Malaysia needs to have a PAN Card if they require to file a return of income or planning to make any financial transactions where PAN is necessary. The financial transactions in which one mandatorily needs to have a PAN are as follows: –
- One needs to have the PAN Card for sale and purchase of a motor vehicle other than the two-wheeled vehicles.
- If you need to pay an amount exceeding Rs. 50,000 to an institution or a company for acquiring debentures or bonds issued by it.
- To sell or purchase shares of a company that is not listed in a recognized stock exchange for an amount exceeding Rs. 1 Lakh per transaction.
- For opening a bank account (other than a basic savings bank deposit account or a time deposit referred at point no. 10) with a banking company or a cooperative bank.
- For the deposits of cash exceeding Rs. 50,000 during one day with a banking company or a co-operative bank.
- If you need to sell or purchase any immovable property exceeding Rs. 10 Lakh or valued by stamp valuation authority referred to in section 50C of the act at an amount exceeding ten lakh rupees.
- To make a contract for the sale and purchase of securities (other than shares) for an amount exceeding Rs. One lakh per transaction.
- Payment exceeding Rs. 50,000 to a mutual fund for purchasing its units.
- To Sale or Purchase of shares of any company which is not listed in any recognized Stock Exchange be any person for amount not exceeding Rs. 1 Lakh per transaction.
- Time Deposit Exceeding of Rs. 50,000 at one time or aggregating to more than Rs. 5 lakh during any financial year with –
a. A Co-operative Bank or a Banking Company
b. A Post Office
c. A Nidhi Company referred to section 406 of the Companies Act, 2013 or
d. A NBFC which holds a certificate of registration under section 45-IA of the RBI Act, 1934 to hold or accept deposit from public. - Opening a DEMAT Account with a custodian, Participant, Depositary or any other person with SEBI.
NRIs in Kuala Lumpur, Malaysia
The Sultanate of Malacca is regarded to have started Malaysia’s history about 1400 AD. The Sultanate Territories previously stretched along the East Coasts of Peninsular Malaysia and Sumatra. Malacca rose to prominence as a splendid government as a result of its strategic location at a crossroads between East Asia and the Middle East.
Malacca was able to establish itself as a significant spice trading hub, particularly in Southeast Asia, as a result of this circumstance. Because the Ruler himself had embraced Islam, it was the dominant religion that evolved and became the main religion of the population.
Land area: 126,853 sq mi
Total area: 127,316 sq mi
Population:– (2022 est.) 33,331,000
Currency Exchange Rate:- 1 USD equals 4.386 Malaysian ringgit
Head Of State:- Paramount Ruler
Official Language:- Malay
Official Religion:- Islam
Official Name:- Malaysia
Capital:- Kuala Lumpur
Malaysia is a country in Southeast Asia that is divided into two noncontiguous regions: Peninsular Malaysia (Semenanjung Malaysia), also known as West Malaysia (Malaysia Barat), and East Malaysia (Malaysia Timur), which is located on the island of Borneo. Kuala Lumpur, Malaysia’s capital, is located around 25 miles (40 kilometres) from the shore, whereas Putrajaya, the administrative capital, is about 16 miles (25 kilometres) south of the city.
Land
Peninsular Malaysia encompasses the majority of the Malay Peninsula’s southern region. To the north, it is surrounded by Thailand, with whom it has a 300-mile land border (480 km). To the south, at the peninsula’s tip, lies the island republic of Singapore, which Malaysia shares a causeway and a separate bridge with.
The Indonesian island of Sumatra is located to the southwest, across the Malacca Strait. East Malaysia is made up of the country’s two largest states, Sarawak and Sabah, and is separated from Peninsular Malaysia by the South China Sea, which runs for 400 miles (640 kilometres). These two republics occupy about the northern fourth of the enormous island of Borneo, sharing a land border to the south with the Indonesian section of the island (Kalimantan).
Economy of Malaysia
Malaysia’s economy has developed from reliance on raw material exports (rubber and tin) to one of Southeast Asia’s strongest, most diversified, and fastest-growing. Primary production is still important: the nation produces a lot of rubber and palm oil, exports a lot of petroleum and natural gas, and is one of the world’s biggest producers of commercial hardwoods. Malaysia, on the other hand, is increasingly emphasising export-oriented manufacturing to drive its economic growth.
Malaysia has drawn significant international investment, particularly from Japan and Taiwan, thanks to its comparative advantages of a relatively affordable yet educated labour population, well-developed infrastructure, political stability, and an undervalued currency.
Cultural life
Malaysia is a crossroads for various important cultural traditions from Southeast Asia’s archipelagos, as well as China, South Asia, the Middle East, and the West. The area is home to Malay culture, Peninsular Malaysia’s Orang Asli cultures, and several of East Malaysia’s cultures. Indigenous Malay culture in the Malay Peninsula and other regions of Southeast Asia was heavily influenced by pre-Islamic Indian and early Islamic influences in the first one and a half millennia CE. From the 2nd or 3rd century through the late 14th century, Indian interaction with the Malay Peninsula had a tremendous impact on religion (via Hinduism and Buddhism), art, and literature.
Between 2500 and 1500 B.C., the ancestors of the people who presently live on the Malaysian peninsula initially arrived. Those who lived along the coast had early interaction with Chinese and Indians; maritime traders from India brought Hinduism with them, which was mixed with indigenous animist beliefs. When Muslims conquered India, they brought Islam to Malaysia with them. When Parameswara Dewa Shah, the Hindu monarch of the great city-state of Malacca, converted to Islam in the 15th century, Islam gained a firm foothold in the region.
Benefits of having an NRI PAN Card for NRIs in Kuala Lumpur, Malaysia
The NRIs in Kuala Lumpur, Malaysia can receive the following benefits after applying for an NRI PAN Card: –
- The NRI PAN Card makes you eligible to invest in mutual funds as without a PAN Card one cannot invest in mutual funds.
- After getting the NRI PAN Card, the KYC process in the majority of banks becomes hassle-free.
- The NRI PAN Card will help you in purchasing a property in India as it is mandatory to have a PAN Card for purchasing property in India.
- The PAN Card enables an NRI to deposit funds over a certain limit in their accounts.
- If NRI has Taxable income in India, in that case PAN Card is mandatory.
Eligibility criteria for an NRI to get PAN Card in Kuala Lumpur, Malaysia
For getting an NRI PAN Card in Kuala Lumpur, Malaysia you need to meet the below-given criteria: –
- First and foremost, you need to be an NRI earning taxable income in India.
- You are eligible for NRI PAN Card if you are trading in shares through a depository or a broker.
- If you want to invest in mutual funds then you are eligible for getting an NRI PAN Card.
- You can get an NRI PAN Card if you want to buy property in India.
Application procedure for NRI PAN Card – How to get NRI PAN Card in Kuala Lumpur, Malaysia?
One can apply for NRI PAN Card through online mode as well as offline mode. Both the methods are comprehensively described below, you can choose any of them depending on what best suits you.
Offline process for getting NRI PAN Card in Kuala Lumpur, Malaysia
Let’s discuss the offline process for getting NRI PAN Card for NRIs in Kuala Lumpur, Malaysia first. To apply for NRI PAN Card all you have to do is meticulously follow the instructions given below: –
- You need to visit your nearest TIN (Tax Information Network) facilitation centers like UTI (Unit Trust of India) and NSDL (National Securities Depository Limited) or you can visit the IT PAN service center to get the application form.
- Next, you have to fill out the form, attach copies of all the required documents and attest your signature to it.
- Lastly, you need to submit the form to the concerned authority.
- Remember that you can pay the NRI PAN Card fees via demand draft.
- Once you submit the NRI PAN Card application form you will receive an acknowledgment slip.
Online process for getting NRI PAN Card in Kuala Lumpur, Malaysia
If you want to apply for NRI PAN Card through the online method then you need to follow the below-given instructions: –
- First of all, you need to visit the online TIN (Taxpayer Identification Number) Portal and tap on the option of “Apply Online”.
- Now, select form 49A which is for NRIs with Indian citizenship under the “Application Type”. If you have foreign citizenship then select form 49AA.
- Next, you have to fill in the other necessary details asked in the form.
- Enter the “Captcha” and tap on the “Submit” icon.
- A new page will open on your screen that will redirect you to the NRI PAN Card application form.
- Ensure that you fill out the form correctly and upload all the required documents along with your signature.
- At the end, tap on the “Submit” option.
- For completing the process, you need to make the payment.
After successfully completing the above-given steps the applicant will receive an acknowledgment slip that will contain a 15-digit number. You can use this 15-digit number for tracking your application status.
NSDL Link to Apply Online PAN Card
UTIITSL Link to Apply Online PAN Card
Important documents required for the NRI PAN Card in Kuala Lumpur, Malaysia
You need to know that both the NRIs with or without the Indian Citizenship are eligible for NRI PAN Card. But the documents you need to submit might differ depending on the fact whether you have Indian citizenship or not.
Below given are the important documents that an NRI with Indian citizenship needs to submit along with their PAN application form 49A: –
- You need to attest identification proof such as an Aadhar card, Voter ID, or Driving License with your form.
- Along with the identification form you need to give address proof like a passport copy, bank account statement in your residential country, or statement copy of your NRE (Non-Residential External) bank account. The statement copy you are attesting with the form needs to show a minimum of two transactions in the past six months.
- Besides this, you need to attach a copy of the PIO (Person of Indian Origin) or OCI (Overseas Citizen of India) card with your form.
- Lastly, you need to attach two recent passport-size photographs.
If you are a foreign citizen who has an Indian office address and wish to apply for a PAN Card you need to attach the above-given documents with the form. But along with the above-given documents you need to attest some additional documents as well; they are as follows: –
- You need to attest to a copy of the appointment letter issued to you by the Indian office.
- Attach the PAN Card details of the employer for the online verification.
- Lastly, you need to attach a copy of the original address certificate issued by the Indian employer.
Method of payment for NRI PAN Card in Kuala Lumpur, Malaysia
The amount of fees and payment process also differs according to the category of the taxpayer. The amount and process will vary for the NRIs providing an Indian address for communication and the NRIs providing a foreign address for communication.
Method of payment for NRIs in Kuala Lumpur, Malaysia who has provided a foreign address for communication
- If you have provided a foreign address for communication you need to pay an amount of Rs. 994, including the fees, tax, and postage of the NRI PAN Card application.
- You can pay through credit card, debit card, or by drawing a demand draft.
- If you are paying through demand drafts then you need to draw it in favor of NSDL-PAN (National Securities Depository Limited – Permanent Account Number) payable in Mumbai. And remember that the foreign credits are not eligible for NRI PAN Card payment.
- However Noted that, This service is available to only 105 countries, list is available on the official website of NSDL.
Method of payment for NRIs in Kuala Lumpur, Malaysia who has provided an Indian address for communication
- The NRIs who have Indian citizenship need to pay Rs. 107 for NRI PAN Card. The fees also include GST.
- They are allowed to pay through debit cards, credit cards, demand draft, and net banking. Here they need to remember that they cannot pay through cash.
Important NRI PAN Registration Guidelines for NRIs in Kuala Lumpur, Malaysia
These are the following important guidelines that one must follow while applying for a PAN Card: –
- Use only black ink while filling the PAN Card form through offline mode.
- If you are an NRI, ensure that the Accessing Officer code you provide is correct.
- The name written in the form should be the same provided in the submitted documents.
- Overwriting or correction in the form can lead to rejection, so carefully fill the form and avoid any overwriting.
- Being an NRI you should avoid placing a date or place beneath your signature while signing the form.
- If you already have one PAN Card then by any chance you are not supposed to possess another one. So, you should always surrender the duplicate PAN, by filling the form of PAN Change or Correction request.
- Ensure that the information provided in the form is correct because any kind of misinformation will lead to the rejection of the form.
- Stappling or pinning the photographs in the form is not acceptable. You need to attach the photographs to the form while filling it out.
- If the person applying for PAN Card is a minor, the guardian or representative might submit the address and identity proofs.
- Identity proofs and address should be carefully and securely attached to the forms and any false or incorrect information can lead to rejection of the form.
- The applicant must ensure to bold the details in the form.
Frequently asked questions about NRI PAN Card for NRIs in Kuala Lumpur, Malaysia
Is it mandatory for me to be physically present in India while applying for an NRI PAN Card?
Ans. Being an NRI there is no need to be physically present in India while applying for an NRI PAN Card. Besides this, you can apply for NRI PAN Card even if you don’t possess an address in India.
Is there any restriction on having more than one NRI PAN Card for NRIs in Kuala Lumpur, Malaysia?
Ans. Yes, there is a provision for the penalty of Rs. 10,000 imposed under section 272B of the income tax act, 1961 for having more than one PAN. In case more than one PAN Card is allotted to you then you should immediately surrender the other PAN Card.
What is the possible penalty for non-compliance with provisions relating to PAN?
Ans. If there is any default by the taxpayer in complying with the provisions relating to PAN then under section 272B the penalty of Rs. 10,000 can be levied on that person.
How much time will it take to receive the NRI PAN Card for NRIs in Kuala Lumpur, Malaysia?
Ans. It will take only 15 days after applying for the NRI PAN Card for NRIs in Kuala Lumpur, Malaysia. The applicant will receive the NRI PAN Card at their provided address within 15 days of application.
Final verdict
That was all about How to get NRI PAN Card for NRIs in Kuala Lumpur, Malaysia ? In the article, we comprehensively discussed the benefits, application process, procedure, documents required, and important clauses related to NRI PAN Card. In case you are still left with any questions regarding how to get NRI PAN Card? then please feel free to write your concerns and queries in the comment section. We will try to resolve all your NRI PAN Card-related queries as soon as possible. Please subscribe to the website for more articles like this. For further improvement kindly drop your suggestions in the comments.