Q.872 PAN Card for OCI holder

and Tax Implications - UK Tax

Liability . . .

Question: Hi there, I was reading your website NRIINFORMATION and found it really interesting. Thanks for the good work. At present I work in UK and eligible for UK Nationality. However I have following queries before I can decide. 1) Do I have to update PAN status as Foreign National from current status of only NRI? 2) How update in PAN can impact my tax liability in UK as well as in India? 3) Does under Double Taxation Treaty financial information is shared between two countries? It will be great help if you can provide some feedback. Thanks in advance. Best regards, Mitul Chothani [March 31, 2016] Answer: Regarding your questions: I doubt if there is a fixed time frame that makes it mandatory to update PAN data. However, keeping Pan Card information up to date is a good idea. PAN card information on file with the tax department can be updated on-line. Applicants can fill PAN Change Request Form on line and submit the form. For Changes or Corrections in PAN data, fill all mandatory fields (marked with *) of the Form and also check mark the corresponding box on left margin of appropriate field where change/correction is required. To Access the Form visit https://tin.tin.nsdl.com/pan/correctio n.html Having a PAN card in India has no effect on your tax liability in UK or India. PAN is just an identification number in India used by the tax authorities to identify a tax payers account information for tax purposes in India. Whether a person has a PAN or not, their tax liability does not change. A person who has taxable income in India has a tax liability even if he does not have a PAN card. On the other hand, a person who has a PAN and has no taxable income, need not file a tax return as he/she has no tax liability, despite having a PAN Card. The intent of ‘Double Tax Treaties’ is not to exchange income or tax records of individuals. Double Tax Avoidance Agreements (DTAA) are singed by two countries so their citizens are not taxed on the same income in two countries. When filing tax returns in either country, the benefit under DTAA can be used by a tax payer to minimize their tax liability. The only country that I am aware of that currently shares bank account information of their citizens/residents with India is the United States of America. This sharing of information also is not under the DTAA but under other agreements that the US & India agreed upon to comply with US tax laws such as FATCA [ For info on FATCA click HERE ] While the Indian government and UK governments may not exchange tax & income information, the responsibility of declaring and filing the appropriate income tax returns on foreign income falls on the individuals.