PAN for NRIs 2026: Apply Abroad & Fix an Inoperative PAN

Quick answer: An NRI doesn't legally have to hold a PAN, but you need one for almost any money tie to India: an NRE/NRO account, mutual funds, rent, property sales and tax refunds. You can apply from abroad without Aadhaar (Form 49A if you're an Indian citizen, Form 49AA if you're a foreign citizen or OCI). If your PAN shows as inoperative, don't pay the PAN–Aadhaar linking penalty if you don't hold an Aadhaar, and never apply for a second PAN. Update your residential status and raise a grievance instead.

Updated for the Income-tax Rules 2026, which renumber the PAN and tax forms. Both old and new form numbers are given below.

Watch the 14-minute episode: PAN for NRIs, 7 myths that can cost you money

What is a PAN, and does it change when you become an NRI?

A PAN (Permanent Account Number) is a 10-character alphanumeric number issued by India's Income Tax Department. It is your tax identity in India and links your significant financial transactions here.

A PAN is issued once and lasts for life. It does not expire, and it does not change when your residential status or citizenship changes. If you got a PAN as a resident and later moved abroad, or later took another country's citizenship, you keep the same PAN. Holding more than one PAN is not allowed.

Does having a PAN make an NRI a tax resident of India?

No. A PAN does not make you a tax resident of India and does not create any tax liability by itself. Your residential status is decided by the Income-tax rules on how many days you spend in India in a year, plus a few extra conditions. A PAN is only an identifier that lets you comply when you need to.

To see where you stand, use the NRI status calculator or the RNOR calculator.

Does an NRI need a PAN card?

There's no law that every NRI must hold a PAN. If you have no financial dealings in India, you can do without one. You'll need a PAN as soon as you want to:

• open an NRE or NRO bank account (NRE vs FCNR: which one pays more)
• invest in Indian shares, mutual funds or SIPs
• earn income in India, such as rent, dividends or interest
• file an Indian income tax return
• buy or sell property in India
• take a loan against an Indian asset

What about Form 60? For some transactions you can sign Form 60 instead of quoting a PAN (Form 97 under the Income-tax Rules 2026). For an NRI with ongoing ties to India it's a short-term patch: banks, fund houses and property buyers usually insist on a PAN.

What happens if an NRI doesn't have a PAN?

Without a PAN, tax is deducted at a higher rate, investments are refused, and refunds are hard to claim. In practice:

• Higher TDS on rent and other income. If you rent out a flat in Mumbai for ₹60,000 a month, your tenant must deduct TDS. Without your PAN, they must deduct at the higher of the applicable rate, the rate in force, or 20%, plus surcharge and cess, and you lose any lower treaty rate. You then wait months to recover the excess.
• Mutual fund applications rejected. Fund houses need a PAN for KYC.
• Property sales delayed. When an NRI sells property, the buyer deducts tax under Section 393(2) (formerly Section 195), not the 1% that applies to resident sellers. Your PAN is central to that deduction.
• No refund. Excess TDS comes back only through an income tax return, and you generally need a PAN to file one.
• No treaty relief. India has Double Taxation Avoidance Agreements (DTAAs) with 90+ countries, including the US, UK, UAE, Canada, Singapore and Australia. To claim treaty rates you need a Tax Residency Certificate and Form 10F (Form 41 under the 2026 Rules), linked to your PAN.

Can an NRI apply for a PAN without Aadhaar?

Yes. Aadhaar has been mandatory for new PAN applications since July 2025, but that rule is for residents. NRIs aren't required to get Aadhaar, and foreign citizens can't. On the application you declare that you're an NRI without Aadhaar and apply with documents. If you do hold an Aadhaar, you add the number.

Which PAN form should an NRI use: 49A or 49AA?

The form depends on your citizenship, not where you live:

• Form 49A (Form 93 under the Income-tax Rules 2026): Indian citizens, including NRIs who still hold an Indian passport, however long they've lived abroad.
• Form 49AA (Form 95 under the 2026 Rules): foreign citizens, including most OCI cardholders and former PIO cardholders.

Using the wrong form can get the application rejected at scrutiny.

How to apply for a PAN from abroad, step by step

You apply online from any country through either of the two official portals: Protean eGov Technologies (formerly NSDL) or UTIITSL.

1. Choose your form: 49A for Indian citizens, 49AA for foreign citizens.
2. Fill it in online. Your name, date of birth and address must match your documents exactly.
3. If you have Aadhaar, use the Aadhaar OTP route; it's faster. Without Aadhaar, choose the document route.
4. Pay the fee. It's nominal, but sending the physical card to an overseas address costs more.
5. Courier attested copies of your passport and overseas address proof to the processing office.
6. Track the application on the portal you applied on.

Your e-PAN arrives by email. It is fully valid, and banks and property registrations accept it, so the physical card is optional.

Can NRIs get an instant e-PAN? No. The instant, same-day e-PAN is only for Indian citizens whose Aadhaar is linked to an Indian mobile number.

Why is my PAN inoperative if I'm an NRI?

Most NRIs with an inoperative PAN were switched off by mistake. The Income Tax Department's system treats every PAN as resident by default. After the PAN–Aadhaar linking deadline, it marked every unlinked PAN as inoperative, including NRIs who were exempt because they don't hold Aadhaar but had never told the department they were non-resident.

An inoperative PAN holds back refunds and makes TDS apply at the higher rate.

Watch the 2-minute short: NRI PAN danger, the "exemption" that can kill it

How to make an inoperative PAN operative again (without paying the penalty)

If you're an NRI who doesn't hold an Aadhaar, your inoperative PAN is a status mismatch, not a violation. Don't pay the linking penalty and don't apply for a new PAN. Instead:

1. Update your status on the income-tax e-filing portal. In your profile, change your residential status to non-resident.
2. Raise a grievance under the PAN–Aadhaar category, stating that you're an NRI not eligible for Aadhaar. Upload your visa and overseas address proof.
3. Update your address on the Protean portal to your overseas address, removing the old Indian one.

Once processed, your PAN becomes operative again, usually within a few days to a few weeks.

While you're at it, move your PAN's assessing officer jurisdiction to International Taxation. Your CA can do this through the income-tax portal, and it shouldn't cost much.

If you do hold an Aadhaar, this exemption doesn't apply. You may need to link it, so check your situation before skipping the penalty.

Can I have two PAN cards?

No. Holding more than one PAN is illegal and attracts a penalty. It often happens without anyone meaning it to: parents get a PAN for a child, and years later the child, now abroad, applies again. Before applying, ask your parents whether one already exists. If you find a second PAN, surrender it with the prescribed form, declaring the PAN you keep.

Common PAN mistakes NRIs make

• Applying for a new PAN when the old one is inoperative. Fix the old one instead.
• Name mismatches between your passport and PAN, including swapping given name and surname. One spelling slip can get the application rejected.
• Husband's name in the father's name field. The form and the database track your father's name. Married women should enter their father's name, not their husband's.
• The wrong form (49A vs 49AA), chosen by residence instead of citizenship.
• Paying the linking penalty without checking whether the NRI exemption applies.

What does a PAN let an NRI do?

Beyond tax filing, a PAN lets you:

• Invest in India: demat accounts, shares, mutual funds, SIPs and investments in a minor's name all need a PAN for KYC.
• Send money abroad: repatriating funds, especially from an NRO account or after a property sale, needs Form 15CA and a CA's Form 15CB (Forms 145 and 146 under the 2026 Rules), and both rely on your PAN.

FAQs

Does a PAN card expire for NRIs?

No. A PAN is valid for life and stays the same when you become an NRI or change citizenship.

Can an OCI cardholder get a PAN?

Yes. OCI cardholders are usually foreign citizens, so they apply on Form 49AA (Form 95 under the 2026 Rules).

Is Aadhaar mandatory for an NRI's PAN application?

No. The July 2025 Aadhaar requirement is for residents. NRIs can apply without Aadhaar using passport and overseas address proof.

What is the TDS rate if an NRI has no PAN?

The higher of the applicable rate, the rate in force, or 20%, plus surcharge and cess. Treaty rates are lost too.

Do NRIs have to link PAN with Aadhaar?

NRIs who don't hold an Aadhaar are exempt. If you do hold one, linking may apply to you.

How long does it take to make an inoperative PAN operative?

Usually a few days to a few weeks after you update your status to non-resident and raise the grievance.

Is an e-PAN valid for NRIs?

Yes. The e-PAN sent by email is fully valid for banks, investments and property transactions.

Where do NRIs apply for a PAN?

Online, through Protean eGov Technologies (formerly NSDL) or UTIITSL, from any country.

Get your PAN sorted

If you have property, rental income, refunds stuck behind an inoperative PAN, or treaty claims to make, book a consultation and bring your documents. More explainers are on the videos page.