NRI is a person residing outside India who is a citizen of India or Person of Indian Origin (PIO).
Section 206AA of the Income Tax Act (the Act) provides for tax deduction at source at the higher of the following rates, if the recipient of the income has not furnished his/her Permanent Account Number (PAN).
To reduce the compliance burden of foreign companies and non-residents, the Finance Act, 2016 has relaxed the condition of obtaining a PAN by such foreign companies and non-residents, subject to the recipient foreign companies or non-residents (deductee) furnishing the following details
Furthermore, these details are required to be reported to the Indian tax authorities by HDFC Mutual Fund (for investments in our schemes) by way of including it in the withholding tax returns and stating ‘PAN not available’
While the repatriation procedure is fairly simple, with some planning you can probably make it much easier.