Revenue dept says PAN mandatory for qualified foreign investors

Revenue dept says PAN mandatory for qualified foreign investors

FAQs published on Monday reiterates requirement despite representations by investors

N Sundaresha Subramanian / New Delhi Dec 27, 2012, 11:21 IST

A proposal by finance ministry’s department of economic affairs to exempt Qualified Foreign Investors (QFIs) from acquiring a Permanent Account Number (PAN) has been virtually shot down by the Department of Revenue.

A Frequently Asked Questions (FAQs) published on the department’s website on Monday reiterates that “QFIs are required to obtainPAN card to comply with tax norms” in India

The document adds “Under the current provisions, QFIs would be required to obtain PAN card. The process of obtaining a PAN card is simple, and user friendly. An application can be  filed by a foreign investor online and the process can be completed within 2 to 3 weeks.”

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued by the Income Tax Department of India to any “person” to facilitate him in making tax payments filing, returns and claiming refunds.

The number, along with other relevant details, is printed on a card called PAN card.

The FAQs come with a disclaimer that, “These FAQs are prepared with a view to help QFI applicants to get generic understanding of the tax framework. These FAQs cannot be used in a court of law to interpret any circular, rules, regulations, statutes etc., one way or the other.”