PAN Card for Returning NRIs: Everything You Need to Know (2026)

Last year, a member in our WhatsApp community posted a message that panicked dozens of people.

“I just tried to redeem my mutual funds and got rejected. My PAN is showing as inoperative. I’ve had this PAN for 18 years. What happened?”

Turns out, he had been living in the US for 12 years. Never updated his residential status on the Income Tax portal. Never linked his Aadhaar to PAN (because he didn’t have Aadhaar). And after July 2023, his PAN quietly became inoperative.

He’s not alone. The Income Tax Department deactivated PAN cards of an estimated 10 crore people – including a massive number of NRIs who had no idea this was coming.

If you’re planning to return to India, your PAN card situation is one of the first things you need to sort out. A broken PAN can freeze your bank accounts, block your investments, reject your tax refunds, and make buying property a nightmare.

This guide covers everything – whether you already have a PAN, need a new one, or need to fix an inoperative one.

What Exactly is a PAN Card?

Quick basics for those who need a refresher.

PAN stands for Permanent Account Number. It’s a 10-character alphanumeric code issued by India’s Income Tax Department.

Think of it as your financial identity in India. Every significant money-related activity in India connects back to your PAN.

It’s not the same as Aadhaar.

PAN is about taxes and financial tracking. Aadhaar is about identity verification. Both are important, but they serve different purposes.

And here’s something many people don’t realize – there’s no separate “NRI PAN card.” The PAN card itself is the same whether you’re a resident or NRI.

The difference is how your residential status is recorded in the Income Tax system.

Do Returning NRIs Need a PAN Card?

Short answer – yes. Almost certainly.

Here’s when PAN is mandatory:

Situation	PAN Required?
Earning any taxable income in India (salary, rent, business)	Yes
Selling property in India	Yes
Buying property worth over Rs 10 lakh	Yes
Opening a bank account	Yes
Investing in mutual funds, stocks, or FDs	Yes
Filing Income Tax Return	Yes
Cash deposits/withdrawals over Rs 20 lakh in a financial year	Yes
Transactions in goods/services over Rs 2 lakh	Yes

And here’s the kicker – without a PAN, TDS (Tax Deducted at Source) is charged at a flat 20% instead of the normal applicable rate. That’s a significant penalty on any income you earn in India.

So if you’re returning to India and plan to work, invest, buy property, or even earn interest on your bank deposits – you need an active PAN card.

The Inoperative PAN Crisis: What Happened and Why

This is the biggest PAN-related issue NRIs have faced in recent years. Let me explain clearly.

In 2023, the Indian government made PAN-Aadhaar linking mandatory. The deadline was June 30, 2023. If your PAN wasn’t linked to Aadhaar by that date, it became “inoperative.”

Now, NRIs are technically exempt from this linking requirement. The government said NRIs don’t need Aadhaar, so they don’t need to link.

But here’s the catch that burned thousands of NRIs.

The Income Tax Department’s system automatically flagged PANs as inoperative if they weren’t linked to Aadhaar. The system didn’t automatically know who was an NRI and who wasn’t.

The department said it would protect NRIs who:

• Had filed ITR in the last 3 assessment years showing NRI status, OR
• Had informed their Jurisdictional Assessing Officer (JAO) about their NRI status

If you didn’t do either of those things? Your PAN went inoperative. Even though you were exempt.

Many NRIs in our community didn’t even know they needed to do this. They hadn’t filed Indian ITR because they had no Indian income. They had no idea what a “Jurisdictional Assessing Officer” was.

The result was chaos. Frozen mutual fund accounts. Rejected property transactions. Higher TDS deductions. Bank KYC failures.

If this happened to you, don’t panic. It’s fixable. I’ll show you how.

Step 1: Check if Your PAN is Active

Before doing anything else, check your PAN status.

Method 1: Income Tax Portal

1. Visit incometax.gov.in
2. Login with your PAN and password
3. Look for any notice saying “Your PAN is inoperative”
4. Go to “My Profile” and check your PAN status

Method 2: PAN-Aadhaar Link Status

1. Go to incometax.gov.in
2. Under “Quick Links,” click “Link Aadhaar Status”
3. Enter your PAN and Aadhaar number
4. The status will show whether they’re linked

Method 3: Check Form 26AS

1. Login to the Income Tax portal
2. Download your Form 26AS (Tax Credit Statement)
3. If your PAN is inoperative, it may show a flag or warning

If your PAN is active – great. Skip ahead to the sections on updating your details after returning.

If it’s inoperative – read the next section carefully.

How to Reactivate an Inoperative NRI PAN

There are two paths depending on your situation.

Path A: You Have Aadhaar – Link PAN and Aadhaar

If you have an Aadhaar card (maybe from before you left India), the simplest fix is to link them.

1. Visit eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar
2. Enter your PAN and Aadhaar number
3. Pay the late fee of Rs 1,000 (since the original deadline has passed)
4. Submit the linking request
5. Your PAN will be reactivated within 7-30 days

The Rs 1,000 fee is annoying, but it’s a one-time cost that immediately solves the problem.

Path B: You Don’t Have Aadhaar – Update NRI Status with Assessing Officer

This is the route most NRIs abroad need to take.

Step 1: Find your Jurisdictional Assessing Officer (JAO)

1. Go to incometax.gov.in
2. Under “Quick Links,” click “Know Your AO”
3. Enter your PAN number and mobile number
4. Verify with OTP
5. The system will show your JAO’s email address and details

Step 2: Send an email to your JAO

Write an email requesting update of your residential status from “Resident” to “Non-Resident.”

Attach these documents:

• Copy of your PAN card
• Copy of your passport (pages showing personal details + visa stamps proving foreign residence)
• A cover letter stating:
  • Your PAN number
  • That you are an NRI (non-resident)
  • Period of your stay outside India
  • Request to update residential status and reactivate PAN

Step 3: Wait for processing

The JAO reviews your documents and updates your status. This typically takes 15-30 days, though some community members report it taking longer.

Alternative email method: The Income Tax Department also accepts requests at [email protected] or [email protected]. Try both your JAO email and these central emails for faster resolution.

What Happens While PAN is Inoperative?

Until your PAN is reactivated:

• TDS is deducted at a higher rate (20% instead of the applicable rate)
• You can’t open new bank accounts
• Mutual fund transactions (new SIPs, redemptions) may be blocked
• Loan applications will be rejected
• Property transactions may face complications
• You can still file ITR (a warning shows, but filing is allowed)

This is why sorting out your PAN before returning is so important. Don’t wait until you land in India and realize your financial life is frozen.

Don’t Have a PAN? How to Apply for a New One

If you’ve never had a PAN card, or if you’re an OCI holder who needs one, here’s how to apply.

Which Form to Use?

This confuses a lot of people, so let me make it simple.

Your Status	Form to Use	Where to Apply
Indian citizen (including NRI with Indian passport)	Form 49A	Protean (NSDL) or UTIITSL
OCI card holder / Foreign citizen	Form 49AA	Protean (NSDL) or UTIITSL

The key distinction: Form 49A is for Indian citizens regardless of where they live. Form 49AA is for foreign citizens, even if they have Indian origin.

If you’re an NRI with an Indian passport living in the US – use Form 49A.

If your child is a US citizen with an OCI card – use Form 49AA.

Applying Online (From Abroad)

You can apply for PAN from anywhere in the world. No need to be in India.

Through Protean (formerly NSDL):

1. Visit protean-tinpan.com
2. Click “New PAN – Indian Citizen (Form 49A)” or “New PAN – Foreign Citizen (Form 49AA)”
3. Fill in the online form with your details
4. You’ll need an AO (Assessing Officer) code – for NRIs, use the International Taxation AO code
5. Upload passport-size photo and signature
6. Pay the fee: approximately Rs 107 for Indian address delivery, Rs 1,017 for foreign address delivery
7. Submit online and note your 15-digit acknowledgment number
8. Print the acknowledgment, paste photo, sign it
9. Courier the signed acknowledgment + supporting documents to the Protean office in India

Through UTIITSL:

Similar process through their portal at pan.utiitsl.com. The steps are comparable.

Documents Required

For NRIs (Form 49A – Indian Citizens):

Proof of Identity (any one):

• Indian passport (this is the simplest and most accepted)

Proof of Address (any one):

• Indian passport showing Indian address
• NRE/NRO bank account statement with at least 2 recent transactions (attested by bank)
• Utility bill at Indian address
• For overseas address: any document proving your foreign residence

Proof of Date of Birth:

• Indian passport (covers this too)

For OCI/Foreign Citizens (Form 49AA):

Proof of Identity:

• Foreign passport + OCI card
• Documents must be apostilled (for Hague Convention countries like the US, UK, Australia) or attested by Indian Embassy/Consulate

Proof of Address:

• Foreign passport showing address, or
• Bank statement from foreign bank (attested)

Pro tip: For NRIs with Indian passports, the passport alone covers identity, address, and date of birth. It’s the one document that handles everything.

How Long Does It Take?

• e-PAN (digital): Generated within 2-3 hours to a few days after verification
• Physical PAN card: 15-20 working days for Indian address, longer for international delivery

Download your e-PAN as soon as it’s available. It’s valid everywhere. Don’t wait for the physical card.

Returning to India? Here’s What Changes for Your PAN

This is the section most relevant to returning NRIs. When you move back to India permanently, several things about your PAN status need to change.

Your Residential Status Changes

As an NRI, your PAN is linked to “Non-Resident” status in the Income Tax system.

Once you stay in India for 182+ days in a financial year, you become a “Resident” for tax purposes. You may first qualify as RNOR (Resident but Not Ordinarily Resident) for 2-3 years, which gives you significant tax benefits.

You need to update your residential status on the IT portal when this change happens. Not immediately upon landing, but when you actually cross the 182-day threshold.

How to update:

1. Login to incometax.gov.in
2. Go to “My Profile”
3. Click “Edit” under Basic Details
4. Change “Residential Status” from “Non-Resident” to “Resident”
5. Save

This status will also reflect in your ITR filing. Make sure they match.

PAN-Aadhaar Linking Becomes Mandatory

As an NRI, you were exempt from PAN-Aadhaar linking. Once you become a resident of India, this exemption disappears.

You must link PAN and Aadhaar after becoming a resident.

If you don’t have Aadhaar yet, get it as soon as you arrive. Our guide on Aadhaar for returning NRIs walks you through the process.

If your PAN became inoperative while you were abroad and you’re now returning, the best approach is:

1. Get Aadhaar first (you can apply immediately with your Indian passport)
2. Link PAN and Aadhaar (pay Rs 1,000 late fee if applicable)
3. Your PAN will be reactivated within 7-30 days

Update Your Address

Your PAN records probably have your old Indian address (or your parents’ address from years ago). Update it.

Online method:

1. Visit protean-tinpan.com
2. Click “Changes or Correction in PAN Data”
3. Select “Individual” and enter your PAN number
4. Update only the address field
5. Upload supporting document (Aadhaar, bank statement, utility bill showing new address)
6. Pay the applicable fee
7. Submit

Your updated e-PAN is generated within a few hours. Physical card comes later by post.

Update Your Name (if Changed)

This is relevant for women who changed their name after marriage, or anyone who updated their name on their passport.

Your PAN card name should match your passport and Aadhaar. Mismatched names create endless KYC problems.

Use the same correction process above, selecting “Name” as the field to update and attaching your passport or marriage certificate as proof.

The PAN-Aadhaar Linking Rules: A Clear Summary

I know this topic causes confusion, so here’s a clean breakdown for 2026.

Your Situation	Need to Link PAN-Aadhaar?
NRI without Aadhaar, living abroad	No – But update NRI status on IT portal
NRI with Aadhaar, living abroad	Yes – Link them or PAN becomes inoperative
Recently returned, now Resident of India	Yes – Mandatory. Get Aadhaar if you don’t have one
RNOR status (first 2-3 years after return)	Yes – You’re technically a Resident, so linking is required
OCI holder without Aadhaar	No – Not eligible for Aadhaar unless 182-day stay requirement met

The bottom line: If you’re living in India as a resident, you must have PAN linked to Aadhaar. No exceptions (except residents of Assam, Meghalaya, J&K, and people above 80 years).

Using PAN After Returning: Practical Situations

Here’s how PAN comes into play in the everyday financial tasks you’ll handle after returning.

Opening or Converting Bank Accounts

When you convert your NRE/NRO accounts to regular resident savings accounts, the bank will require your PAN for re-KYC. An inoperative PAN means the bank can’t process this.

If you’re opening a new bank account, PAN is mandatory for KYC.

Filing Income Tax Returns

Every ITR filing requires your PAN. As a returning NRI, you’ll likely need to file ITR in India once you become a resident.

Your PAN is also needed if you want to claim DTAA benefits to avoid double taxation on income earned in both countries.

Investing in India

Want to start investing in mutual funds, open a demat account, or buy fixed deposits? PAN is mandatory for all of these.

SEBI requires PAN for any securities-related transactions. No exceptions.

Buying or Selling Property

If you’re buying a home after returning, PAN is required for the registration process.

If you’re selling property you owned as an NRI, PAN is needed for TDS compliance. Without PAN, TDS on property sale is deducted at 20% instead of the applicable rate.

Common Mistakes Returning NRIs Make with PAN

After helping thousands of NRIs, these are the patterns I see repeatedly.

Mistake 1: Not checking PAN status before returning

Many NRIs discover their PAN is inoperative only after landing in India and trying to do something at a bank. By then, fixing it takes weeks while your finances are stuck.

Check your PAN status 3-6 months before your move.

Mistake 2: Having multiple PANs

Some NRIs applied for PAN years ago, forgot about it, and applied again. Having two PANs is illegal and can attract a penalty of Rs 10,000.

Check if you already have a PAN at incometax.gov.in before applying for a new one. If you have duplicates, surrender the extra one using the PAN correction form.

Mistake 3: Not updating residential status on IT portal

Updating your status at the bank (NRE to regular account) does NOT automatically update your status on the Income Tax portal. These are separate systems.

You must manually update your residential status on the IT portal.

Mistake 4: Ignoring PAN-Aadhaar linking after becoming resident

Many returning NRIs think the NRI exemption still protects them. It doesn’t, once you’re a resident. Link them within the first few months of becoming a tax resident.

Mistake 5: Mismatched details across documents

Your name on PAN should match your Aadhaar, passport, and bank records exactly. Even small variations (middle name present in one, absent in another) cause KYC failures.

Standardize your name across all documents before or right after returning.

Mistake 6: Using the wrong form for OCI family members

In families where one spouse has an Indian passport and the other is an OCI holder, people sometimes use the same form for both. Remember – Indian citizens use Form 49A, OCI/foreign citizens use Form 49AA.

Mistake 7: Not keeping the old PAN card safe

Your PAN number never changes. Even if the physical card is old and worn, the number is what matters. Keep it safe. If you lose it, you can get a reprint, but it’s an avoidable hassle.

Quick Action Checklist

Here’s your step-by-step checklist, whether you’re still abroad or already back.

If you’re still abroad (3-6 months before return):

• [ ] Check if your PAN is active at incometax.gov.in
• [ ] If inoperative: Email your JAO to update NRI status, OR link PAN-Aadhaar (if you have Aadhaar)
• [ ] If you don’t have PAN: Apply online through Protean or UTIITSL
• [ ] Ensure PAN details (name, DOB) match your passport exactly
• [ ] Update NRI residential status on the IT portal if not done

After returning to India:

• [ ] Get Aadhaar card if you don’t have one
• [ ] Link PAN and Aadhaar once you become a tax resident
• [ ] Update address on PAN to your current Indian address
• [ ] Update residential status on IT portal when you cross the 182-day mark
• [ ] Ensure PAN, Aadhaar, and bank records all have matching details
• [ ] Convert NRE/NRO accounts to resident accounts (bank will need active PAN)
• [ ] Start financial planning with your active PAN

Frequently Asked Questions

Q: Can I apply for PAN from the US/UK/UAE without visiting India?

Yes. PAN application is fully online through Protean (NSDL) or UTIITSL. You fill the form online, pay the fee, then courier your signed acknowledgment and documents to their India office. The physical PAN card can be sent to your overseas address (for an additional fee).

Q: I’ve been in the US for 15 years and never had a PAN. Do I need one before returning?

If you have any Indian income (rent, investments) or plan to make any financial transactions after returning, yes. Get it before you return so it’s ready when you land.

Q: My PAN has my parents’ old address from 20 years ago. Does that matter?

The address on the PAN card itself doesn’t matter much for transactions. What matters is the address in the Income Tax system. But it’s good practice to update it to your current address after returning. It helps with communication from the IT department.

Q: How much does it cost to get a new PAN card?

Approximately Rs 107 (plus GST) if the card is being sent to an Indian address. Approximately Rs 1,017 (plus GST) if it’s being dispatched to a foreign address. e-PAN is typically included at no extra cost.

Q: I have PAN but never filed ITR in India. Is that a problem?

If you had no taxable income in India during your NRI years, you weren’t required to file ITR. That’s fine. But it may be one reason your PAN went inoperative (since the IT department couldn’t verify your NRI status from filings).

Q: My PAN card has my maiden name. How do I change it?

Use the PAN correction/change form on the Protean (NSDL) website. Select “Name” as the field to change, upload your passport or marriage certificate as proof, and submit. The updated e-PAN is generated quickly. Physical card takes 2-3 weeks.

Q: Can OCI holders get PAN?

Yes. OCI holders, PIOs, and even foreign nationals can apply for PAN if they have taxable income or financial transactions in India. Use Form 49AA.

Q: Is there a difference between e-PAN and physical PAN card?

No. The e-PAN (digital PDF) is equally valid and accepted everywhere. Most NRIs find the e-PAN more convenient since it’s available immediately. The physical card is nice to have but not strictly necessary.

Q: What is the AO code I need while applying?

AO (Assessing Officer) code identifies your tax jurisdiction. For NRIs, the International Taxation ward is typically the correct jurisdiction. The Protean and UTIITSL portals usually have a lookup feature to help you find the right AO code based on your city/location.

Q: My US-born child (US citizen with OCI) needs a PAN. Which form?

Form 49AA, since your child is a foreign citizen. You’ll need the child’s foreign passport, OCI card, and your identification as parent/guardian.

One Last Thing

Your PAN card is not glamorous. It’s a small laminated card with a bad photo from years ago. But it’s the single most important financial document you’ll need in India.

Before you get excited about choosing your city, finding a school for your kids, or figuring out health insurance – make sure your PAN is active, updated, and ready to go.

It takes 30 minutes of effort now to save you weeks of frustration later.

Disclaimer: Tax rules and PAN regulations are updated by the Indian Income Tax Department periodically. This guide is based on the latest available information as of early 2026. For the most current rules, always verify with the official Income Tax portal at incometax.gov.in or consult a qualified tax professional. This guide is for informational purposes only and should not be treated as tax or legal advice.

Sources: Income Tax Department of India, Protean eGov Technologies (NSDL), UTIITSL, ClearTax, CBDT circulars. Process details and fees are subject to change.

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If you’re planning your move back, join our WhatsApp community at https://backtoindia.com/groups – 20,000+ NRIs helping each other with real, lived experience. It’s free and volunteer-run.