How do you update your PAN card with your new foreign address?

An NRI is an Indian who is now living abroad but use to live in India. Sometimes they have obtained there Pan card while living in India and use the Indian address. Now that they have moved abroad, there is a question about updating your foreign address. This also gives you a chance to update your NRI status. This also works for an Indian who used to live in India and is now a citizen of another country.

Although it is not required, sometimes it is advised to change your address within the PAN department’s database. When they do this, the address is not printed on your PAN card. There is no address mentioned on the card itself. They use the address in their database for any further correspondence in the future.

The process for changing your address is the same process for applying for the duplicate/replacement PAN card. You will be given that same form. When you update your address, you have to fill up a duplicate PAN card application and the PAN department will update your address as well as send you out a duplicate PAN card. This will be their most recently updated card. You can replace your old PAN card with this new one when you receive it if you wish to.

When updating your address, you will have to provide all of the documents that you provided when applying for a new PAN card the first time. This includes two passport size photos, ID proof, an address proof and a copy of your PAN card. There are other ways of proving you have held a PAN card if you cannot get a copy. There is a place on the internet where you can print off everything you need. You will need to send these documents along with your duplicate or correction PAN card application to India. The government has mentioned their address online. You can send it directly to the government office or, for your convenience; you might want to apply through a broker online. An example of an online Pan Card broker would be www.pancard.co.uk. It generally takes about 3 to 5 business days for your address to be updated with the IT department. They have a tracking system online where you can keep track of everything. Once your application is submitted, then it usually will take around 10 more business days to receive your new PAN card in the mail. The government sends your PAN card via India speed post when you are living in another country.

If you are living in the US, you will find this process a little bit easier because you are allowed to use the address page in your passport as an address proof document. This takes a lot of waiting time away because you do not have to search for an accepted document such as a bank statement or any other document that must be apostilled by the Secretary of State first.

How to open a forex trading account in India?

Forex trading is an exciting venture but one should not take it lightly. May be it’s the easiest legal way to become rich quickly if you can manage your risks. To start forex trading you need to have a forex account through which you can hold and trade foreign currencies.

Opening a forex trading account may seem like a hassle, but it has the least complicated steps and is almost like opening a bank account. If an individual has all the required documents and minimum deposit, one can easily open the account.

The first step towards opening a forex account is to find a forex broker. A forex broker is an intermediate between the individual and the open market that handles funds and trades and provides the forex trading platform. After finding a broker, one can open a demo account before opening typical forex trading account to get to know how to use the account.

You need to establish your identity with your forex broker so they can prove that they know who they have trading with them.

In normal circumstances you just have to fill a set of questionnaire disclosing some of your personal and financial details for regulatory matters. Some of the questions asked in the questionnaire include:

Name

·     Address

·     Email

·     Phone Number

·     Account Currency Type

·     Employment Status

·     Annual Income

·     Net Worth

·     Trading Experience

·     Trading Objectives

·     A password for your trading account

·     Date of Birth

·     Country of Citizenship

·     Social Security Number or Tax ID

As forex trading becomes more regulated, these forms are likely to get longer and require more information.

After providing all the required information you would come across a disclosure that reminds you about your risks involved in trading. The last step includes the verification of address and identity.

Once the information is verified, one can fund the account and begin trading.

Income tax rules for NRIs in India

Handling finances has never been easy and doing it in two countries can sometimes be baffling for NRIs. Here we are to help you understand the how to tackle the different taxation rules and regulations in India. Many a times NRIs find themselves in a fix while filling taxes as the rules for NRIs are different from those that are valid for residents. Here we are having a look, why and in what circumstances an NRI has to file taxes in India.

Rules to file or not to file returns

When an NRI earns income outside India, he/she is not liable to pay taxes in India. You don't have to pay tax on the interest income in a non-resident external account (NRE) or foreign currency non-resident account.(FCNR). Infact you don't have to file income tax return if you don't have any taxable income in India.

However if your taxable income in India during the financial year is above the basic exemption limit of Rs 1.8 lakh you need to file the income tax returns legally.

Circumstances when NRIs are liable to file income tax returns are the following:

·     Trading Income

·     Property/Plot/House Income

·     Salary earned in India for services in overseas

·     Income from any family assets

·     In the form of Interest rates paid by NRI to government, bank

·     Fees under industrial duty

·     Extra Bonus paid by Indian company

However NRI's can save taxes by investing in pension plans, LIC and tax saving mutual funds upto certain limits.

Ways for NRIs to file taxes in India

There are basically three ways to file income tax returns in India. Either you can do-it-yourself online or through assisted services or through the traditional route of a chartered accountant.

Some of the important and practical aspects which should be handled carefully while filing returns include:

Mandatory e-filing

According to the latest notification of the Central Board of Direct Taxes (CBDT) in India, it is mandatory to file your returns electronically if you have annual gross total income (that is, income before any Chapter VI deductions like Sec 80C etc) in excess of Rs 10 lakh.

Interest liability

NRIs should know if they are liable to pay advance tax and if yes it should be paid in time. If not, they would need to calculate the interest for default and deposit the same before filing the tax return. If an individual delays filling returns or pays less advance tax, there are interest implications. The interest is generally 1 percent per month for the default amount and extends till the date of payment.

How to open a bank account in India?

You would need a bank account in India, if you wish to make investments here or receive payments for your business. However getting proper information as to how to go about opening a account is very difficult. Keeping this in mind, we have compiled this informative article that might help you. The significant boom in the Indian banking sector has made it easier for people to reach banks for any requirements. Now you only have to follow some basic steps to open a bank account in any of the Indian banks, provided you have the complete documents.

How to choose the bank?

India has a strong banking sector, with 88 scheduled commercial banks, 27 public sector banks, 31 private banks and 38 foreign banks. Choosing the bank in which the account should be opened will make it easier to gather information. Some of the points you need to remember while selecting a bank includes:

Branches: While selecting banks for opening account, you should look for the banks who have both onshore and offshore branches to facilitate you in case you need a prompt service when anything goes wrong with your account.

Fees: You should be informed about how much fees your bank will charge for various transactions like money transfers, ATM withdrawals, U.S. currency deposits etc. Compare the charges with other banks if the fees seem too high.

Process to open a bank account in India: Opening a bank account in India is not a task as long as you have enough money for initial deposit and the required documents for the application. The initial procedure is to fill up the application form and submit some documents to the bank as a part of their procedure in knowing their customers. These documents are required whether you are applying a savings, checking or any types of bank accounts.

Documents required for opening anaccount for an international company or individuals:

1. For Proof of Identity requirements, you can prepare at least two of any of the following ID:

·     PAN card

·     Voter’s ID card

·     Passport where address differs in the application form

·     ID card of the current employer

·     Driver’s License

·     Government ID card

·     Photo ID card issued by Post Office

>> For companies: Business incorporation certificate copy + company address proof - attested by the Indian embassy.

2. For validating the proof of address, you must bring any one of the following:

·     Electricity Bill

·     Income Tax

·     Credit card statement

·     Salary slip with address

·     Telephone Bill

·     Letter from a reputed employer

·     Bank Account Statement

·     Letter from any recognized public authority

·     Ration card

3. Two recent photographs with a size of 2.5 cm x 3.5 cm

4. Initial deposit of your account

Every bank has its own minimum initial deposit for opening a new bank account. You can visit the website of the bank to get the specifics.

5. Signature verification

Fill up registration forms and receive your PAN card abroad – Completely Online

It used to be a very tedious process when dealing with the government while applying for a PAN card. Now, there are brokers that handle everything for you, so you do not have to deal with it. The process is online, besides sending your documents to India. You can easily start the process and download the application with a full set of instructions by applying at: http://www.nripan.com/apply.html. You just follow the instructions and send across all of your information to their office in India. Everything else is taken care of. 

What you will need while applying through NRIpan.com

If you are applying for a duplicate PAN card, you will need a copy of your PAN card or proof of your pan card number. You will need to fill the forms with all of the correct information that you provided the first time you applied. Then you will need an address proof and ID proof. Then you will need two passport size photos of yourself. 

If you are applying for a new PAN card, you will just need the forms filled correctly, your ID and address proof document, your photos, and your OCI card or PIO card copies if you have them. Remember that every time you mention your PAN number on a form, it will usually be reported to the Income Tax Authorities. 

When applying straight from the government, you have to send your documents and check directly to them, then deal with no follow up or information if anything goes wrong…most of the time, something goes wrong. When you apply through a broker such as: http://www.nripan.com/apply.html, they are there in India to follow up with the government and fix any problems the government officers come across. This will save you a lot of time and complications. They are also available to answer any questions that you have while filling up the forms or about your documents. 

You can talk to everyone only via email, chat, and phone during the office’s hours. It has become an easy step by step process for everyone living abroad: NRIs, OCIs, PIOs, Foreign passport holders, and Foreign Companies.

Processing time is shorter through an online broker.

While staying abroad, you can apply online and get your PAN card within 10 to 15 business days. Sometimes, getting a PAN card is an urgent matter because there are usually finances involved. With this in mind, a broker will always be the way to go. PAN is permanent account number and it has to be mentions on all financial applications in India.

How NRIs (Non-Resident Indians) can apply for PAN Card from Abroad?

What is a Pan Number?
A PAN Number is a ten-digit alphanumeric number, also known as a Tax ID number in India. It comes to you in the form of a laminated card with your picture and signature…the size of a credit card. It is issued by the tax department in order to keep track of who has paid taxes in India.

If you are an NRI, Is it Necessary to have a PAN?
Yes, if you have any money in India at all: in a bank account, investments, etc, you have to have a PAN number. If you do not have one for your existing accounts, you may have to face a penalty. In order to open any new financial account in India of any type, you must have a PAN card first.

Do you have to pay taxes in India, just because you have a PAN number?
You only have to pay taxes on Income that you have generated in India. Just because you have a PAN does not mean that you must pay taxes in India. You should however, file taxes. Even if you do not make any money in India, it is a good idea to file zero taxes. This will put you in very good standing with the government and might even increase your credibility. 

What will having a PAN card do for you?
You cannot do anything financial in India anymore without a PAN. You need to mention your PAN number every time you open a bank account, open a Demat account, invest in India, get income from rent, buy or sell property, get a loan, etc. 

Lucky for you, applying for a PAN card from abroad as an NRI, is now very simple. You can start your process here: http://www.pancard.co.uk/apply.html