The Income Tax Rules, 1962, have been amended so that non-residents no longer have to obtain and furnish a permanent account number (PAN) to enjoy the benefits of lower withholding tax rates.
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Under the amendment, a non-resident payee no longer needs to obtain PAN in order to avoid being subjected to a higher rate of withholding tax in the hands of the payer if they submit the following alternative documentation:
- Name, e-mail address, and contact number;
- Address in the country outside India of which the non-resident payee is a resident;
- Tax residency certificate, if issuance of such a certificate is provided under the law of the country where the payee is resident;
- Tax identification number of the non-resident in the country of their residence or, if no such number is available, the identification number used to identify the non-resident in the country of their residence.
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