Is PAN Required for Foreign Directors

[Pandiyan Perumal]

Our Indian Company is 100% holding by a foreign company. And there are three directors, out of three directors, one Indian director & Two foreign directors. But those two foreign directors don't have any income in India. Please suggest us, PAN is required for those two foreign directors.

AI Summary

Foreign Directors in Indian Companies Must Obtain PAN for Major Transactions Under Section 139A; Penalties Apply for Non-Compliance. An Indian company, wholly owned by a foreign entity, has three directors, including one Indian and two foreign directors. The query is whether the foreign directors need a PAN. Responses indicate that non-residents typically require a PAN for specific financial activities in India. However, under Section 139A of the Indian Income Tax Act, any director in an Indian company involved in financial transactions of 250,000 or more annually must obtain a PAN, regardless of residency. Failure to comply can result in a 10,000 penalty under Section 272B of the Act.