PAN for NRI Property Transactions: When You Need It and How to Get One

A PAN is mandatory for any purchase or sale of immovable property in India worth Rs 10 lakh or more. That rule, Rule 114B of the Income Tax Rules, applies to residents and non-residents alike. Since almost no urban property in India trades below Rs 10 lakh, the practical answer for NRIs is: you need a PAN for every property deal. This page covers when, why and how to get one from abroad.

When PAN is mandatory in property deals

Buying. Rule 114B requires PAN on any sale or purchase of immovable property of Rs 10 lakh or more. The sub-registrar records it on the deed. Resident individuals without taxable income can file Form 60 instead, but that route does not fit NRIs with Indian income, so treat PAN as a hard requirement.

Selling. Your buyer deducts TDS on the sale. From a resident seller it is 1% under Section 194-IA; from you, an NRI, it runs under Section 195 on the gross price. Without your PAN, Section 206AA pushes deduction to penal rates and the credit cannot reach you. No PAN means your own money sits unclaimed with the tax department.

Renting out. Rent is taxable Indian income, and your tenant must deduct TDS under Section 195 when paying an NRI landlord. The tenant's TDS filings need your PAN for the credit to land in your Form 26AS. No PAN, no traceable credit, no clean return.

Everything downstream. Filing your Indian return, claiming a refund of excess TDS, applying for a lower deduction certificate under Section 197, and the CA certification in Form 15CB for repatriation: all of it runs on PAN.

What about Aadhaar?

Non-residents are exempt from mandatory PAN-Aadhaar linking. Make sure your PAN records show non-resident status with the Income Tax Department, or the system may flag your unlinked PAN as inoperative. If you hold an Aadhaar from earlier, linking it removes the issue.

How an NRI gets a PAN

Two forms, by citizenship:

Apply online through either authorised provider:

  1. Protean, the former NSDL e-Gov: https://www.protean-tinpan.com
  2. UTIITSL: https://www.pan.utiitsl.com

You need: passport copy as identity proof, an address proof such as your overseas bank statement or NRE account statement, and photographs. Pay the fee online; dispatch to a foreign address costs more than dispatch within India. An e-PAN lands by email and works for transactions; the physical card follows by post. Processing runs about two to three weeks once documents clear.

Mistakes that cost months: a name mismatch between passport and application, a missing apostille where physical documents are asked for, and applying twice. Holding two PANs is an offence with a Rs 10,000 penalty. If you had a PAN as a student or employee in India, that PAN is still yours: update the address and status instead of applying fresh.

Lost the old PAN?

Do not reapply. Retrieve it. The Income Tax e-filing portal's Know Your PAN service and either provider's reprint facility recover the number with date of birth and registered details. A reprint or e-PAN download costs a fraction of a fresh application and avoids the duplicate PAN trap.

FAQ

Is PAN mandatory for an NRI buying property in India? Yes, for any property worth Rs 10 lakh or more under Rule 114B. That covers almost every urban purchase.

Can an NRI buy property without a PAN using Form 60? Form 60 is a declaration for persons without taxable Indian income. An NRI buying property will have TDS, registration and future rent or sale events that all require PAN. Get the PAN.

Which form does an NRI use to apply for PAN? Form 49A for Indian citizens abroad. Form 49AA for foreign citizens, including OCI holders.

Does an NRI need Aadhaar to get or keep a PAN? No. Non-residents are exempt from PAN-Aadhaar linking. Keep your residential status updated in the tax records so the exemption applies.

My tenant asks for my PAN. Why? Your tenant must deduct TDS on rent paid to an NRI landlord under Section 195 and report it against your PAN. Without it, your TDS credit goes missing and the tenant risks default.

How long does an NRI PAN application take? About two to three weeks after documents clear, with the e-PAN arriving sooner by email.

Sorting out a flat from abroad? 66 MG Road manages NRI-owned property in Mumbai, Pune, Bangalore, Hyderabad, Chennai and Gurgaon: one contact, every rupee itemized, dated proof of all work. See pricing.

Saurabh Garg, founder, 66 MG Road

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