TaxTMI 
TaxTMI 
Requirement of PAN for Demat account
29 May 2007 
3 Replies 
1188 Views Asked by
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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. (AI Summary)
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. (AI Summary)
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.