RIYADH, 1 October 2006 — The last date for submission of Permanent Account Number (PAN) for Indian investors has now been extended to Dec. 31. The number is necessary for investors who deal in Indian stock markets and other high value investment products. Earlier, the National Security Depository Limited (NSDL), a governing authority for depository services (dematerialized accounts) had asked investors to provide PAN on or before Sept. 30 or risk suspension of their accounts. Now, according to the new NSDL directive, the investors are required to submit a copy of their PAN card (which carries the investor’s picture) to their depository participant (the bank or any other agency where the investor holds the dematerialized account) before the end of calendar year 2006.
The dematerialized account is a shareholders’ account without which they cannot transact in stock markets. The extension is particularly good news for Non Resident Indians (NRIs) as they would get more time to do the necessary paper work and still continue to go about their business of buying and selling equity shares or mutual funds for another three months.
“We welcome this new deadline as this would allow us enough time to get our PAN cards done”, says one of the investors in Riyadh.
“This gives much needed opportunity to thousands of Gulf based Indians who would find it easier to do the work when they visit India during Eid next month”, says another.
The PAN is issued by the country’s Income Tax Department to keep track of investment record of every individual and check the flow of black (unaccounted) money into Indian system. This also helps the department in identifying the source of money virtually making it impossible for those who stash large sums in Indian stock markets and real estate business but walk way with huge profits without paying the required taxes.
The NSDL has mandated that even if the account is held in joint names (whatever the joint holding pattern), PAN must be submitted by all the account holders. The Income Tax Department issues a separate PAN card to every individual. Although, the new directive of PAN submission applies to both resident and non-resident Indians, the extension in the submission date has made overseas Indians breathe it easy as they can continue transacting on Indian stock market where many fortunes are made thanks to the unprecedented boom time that has remarkably lasted for long time. The party shows no signs of abetting and the genuine investors would not like to stay away for technical reasons!