JSA Prism | Direct Tax | June 2026

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Permanent Account Number requirements for Resident Companies, Non-resident Individuals and Non-resident Companies under the Income-Tax Act, 2025

The landscape of tax identification in India has undergone significant transformation with the Income-tax Act, 2025 and the Income-tax Rules, 2026 (“IT Rules 2026”) coming into effect from April 1, 2026. The Permanent Account Number (“PAN”) framework has been comprehensively overhauled, with substantial revisions to the rules governing allotment, documentation requirements and mandatory quoting obligations. This article focuses on the PAN requirements applicable to Indian citizen individuals, resident companies, and non-resident individuals and companies.

These changes carry significant implications for Indian companies, Non-resident Indians (“NRIs”), Resident but not Ordinarily Resident Individuals (“RNORs”), foreign nationals and overseas companies with Indian operations or investments.

Key changes in the PAN framework

Under the revised IT Rules 2026, a more structured, documentation-intensive and compliance-focused PAN regime has been introduced. The earlier Form 49A and Form 49AA have been replaced with 4 (four) separate application forms: (a) Form no. 93 for Indian citizen individuals (including NRIs and RNORs); (b) Form No. 94 for Indian entities; (c) Form No. 95 for foreign individuals (not being citizens of India); and (d) Form No. 96 for foreign entities.

This restructuring marks a fundamental shift as the applicable form is now determined by citizenship and place of incorporation rather than residential status alone, resulting in distinct compliance requirements for Indian and foreign applicants. The revised rules also introduce additional disclosure requirements including details relating to Taxpayer Identification Numbers (“TINs”), Authorised Representatives (“ARs”) and Representative Assessees (“RAs”).

PAN requirements for Indian citizens and Indian entities

For individual Indian citizens applying through Form No. 93, the IT Rules 2026 have significantly narrowed the role of Aadhaar. While Aadhaar continues to remain an acceptable proof of identity and address, it is no longer recognised as proof of date of birth. Applicants must now furnish separate documentary evidence such as a passport, driving licence, birth certificate, matriculation certificate or marriage certificate. Consequently, Aadhaar card alone will no longer suffice for a complete PAN application. Additionally, residential status must now be disclosed at the application stage, requiring applicants to specify whether they are residents, non-residents or RNORs.

For Indian companies and other entities incorporated or formed in India including limited liability partnerships, partnership firms, trusts, hindu undivided families, associations of persons and bodies of individuals, the Form No. 94 is the prescribed application. This form requires disclosure of entity-specific details including registration number (mandatory for companies and limited liability partnerships), date of incorporation or formation, registered office address, and details of principal officers or partners.

Indian companies and entities must also mandatorily appoint an AR or RA with an Indian address and provide supporting documentation under Part-E of Form No. 94, along with a declaration certifying the accuracy of the information. The declarant assumes personal liability for any false declaration, representing a stricter accountability framework than previously applicable.

PAN requirements for foreign individuals and overseas entities

For foreign individuals applying through Form No. 95, the compliance requirements are enhanced. A significant change is the mandatory disclosure of citizenship status, classified as: (a) foreigner; (b) person of Indian origin; or (c) overseas citizen of India, a categorization previously required only for foreign portfolio investors and qualified foreign investors under the Securities Exchange Board of India regulations. Foreign individuals and entities must also furnish a TIN issued by their jurisdiction of residence or incorporation, a requirement previously limited to certain categories of foreign investors.

For foreign entities applying through Form No. 96, disclosure of AR or RA details is mandatory. Applicants must furnish the AR/RA’s name, PAN or Aadhaar (where applicable), contact details, Indian address and supporting documentation, establishing a formal compliance point of contact in India.

The AR/RA must have an Indian address and sign the verification declaration forming part of Form No. 96, thereby confirming the accuracy and completeness of the information furnished. A representative assessee in relation to a non-resident may include the agent of the non-resident, including any person in India who is employed by or on behalf of the non-resident, has a business connection with the non-resident, receives income from or through the non-resident, or otherwise. An authorised representative may be appointed in writing including tax professionals including chartered accountants, company secretaries and advocates enrolled with the Bar Council of India may also serve in this capacity, subject to applicable statutory and professional requirements.

Given these obligations, individuals undertaking an AR/RA role would need to document the scope of their authority, ensure appropriate contractual protections and indemnities are in place, and establish arrangements for ongoing compliance support.

Conclusion

The revised PAN framework marks a significant shift in India’s approach towards taxpayer identification and cross-border transparency. The following key themes emerge from the revised rules:

AR/RA verification obligations create material legal risks for them, and the tax authorities may direct correspondence, notices and proceedings pertaining to the applicants to ARs/RAs. AR/ RAs shall seek contractual protection from the applicant for whom he is verifying the information; and
PAN compliance has evolved from a mere tax registration formality to a two-step verification, wherein the underlying information is verified by the AR/ RA who can be approached by the income tax authorities.

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