I would like to know that,whether a pan card is required for an NRI.actually my brother is residing in U.S.since Dec 2000.He came to India by dec 2001 for 30 days.Again he came to India during 2003 for15 days and during 2005 he came for 26 days.As of now he wants to invest in mutual funds &other investments.So I would like to know his residential status.whether he would require a pan?And whats the procedure to invest in India.Or how could he make investments in India?whether his returns through investments are taxable in India?do the needful regarding the above query. ammaialag@yahoo.com

He is Non Resident.

Strictly speaking , there is no requirements for obtaining PAN by Non Resident . This is on account of Rule 114(C)(1) of I T Rule , which says that Section 139 A of the I T Act is not applicable in case of Non-Resident. Second proviso to Rule 114B states that such person who are not required to have PAN should make declaration in Form 60 for entering into any transaction which requires mandatory mention of PAN

However, recently govt framed law to allot PAN to even Non Resident and Person of Indian origin. The detailed guideline is given vide PAN circular no 6 dated 11/10/2006 . Read it here to understand the documents required for getting the PAN.

As far as types of investment are concerned, he can invest in shares , mutual funds , in real estate and although PAN is not required as per I T Rule , it is better to get one, because this will help you in minimising hassles.Your brother can apply for PAN online from UTISL or NSDL sites.

Yes , all income out of investment in India by Non Resident is taxable unless expressly made exempt. Watch this space , I shall be putting articles on Investments by Non Resident.