Requirement of PAN for Demat account

[Guest]

Whether Oversead Body Corporate based in Moritius having in no existence in India is required to obtain PAN no. for opening Demat Account in India. Someone please advice.

[Guest]

Yes. For opening D-mat account, furnishing PAN is obligatory. However, if you are a PAN holder, the same would not automatically make you liable to file your Income tax return in India. There are several transactions for which obtaining PAN has been made mandatory, however filing of IT is governed by provision of section 139(1). ITR will be filed in India only if there is some income (of loss) which is received or deemed to be received or accrues/arise or deemed to accrue/arise in India. In the present case, however, since u will be holding securities/units which are issued by Indian company/AMC, any income thereform (whether by way of capital gains or by way of dividend) will be deemed to accrue or arise in India in view of Section 9 of the IT Act.

[Guest]

Thanks for the reply. But still I have some confusion that eveb if the company has to apply for the PAN then please clarrify on the following points to be given in Form 49 A: 1.Status of applicant 2.Addrees of the Applicant 3.How the Overseas Corporate Body based in Moritius will be assessed in India 4.How to receive the PAN card in India. Please reply.

[Guest]

Please reply some one.If any confusion pleae clear.

AI Summary

PAN requirement for demat accounts: foreign corporate investors must obtain PAN; tax filing follows only if domestic source income accrues. Furnishing PAN is mandatory to open a demat account. Holding PAN does not by itself require filing an income tax return; filing depends on whether income is received, deemed received, or accrues/arises in the jurisdiction. Income from securities or units issued by domestic issuers is treated as domestic source income and will be deemed to accrue or arise in the jurisdiction, potentially creating tax and filing obligations. Practical questions on Form 49A entries and PAN delivery for an overseas corporate applicant were raised but not answered.