Form 49AA in 2026 and PAN for Foreign Companies (Now Form 96)

Written by Nihal Srivastava, Krystal7 Consultants. Last updated 2 October 2026.

From 1 Apr 2026, Form 49AA no longer exists. A company, LLP, firm or trust formed outside India applies for an Indian PAN in Form 96. A foreign national applies in Form 95. Both forms sit under section 262 of the Income Tax Act, 2025 and rule 158 of the Income Tax Rules, 2026. The key document is the home country registration certificate, apostilled or attested by an Indian mission. The fee is INR 1,017 with a card posted abroad (Protean, read 2 Oct 2026).

This page covers when a foreign company needs a PAN, the new forms, documents, fees and timing. It also explains the Indian representative and how to avoid higher TDS without a PAN. INR 1,00,000 is one lakh (100,000), and INR 1,00,00,000 is one crore (10 million).

When does a foreign company need a PAN?

A foreign company needs a PAN once it must file an Indian tax return, or receives Indian income from which tax is deducted. Section 262(1) of the Income Tax Act, 2025 sets the triggers. Rule 159 adds transactions where a PAN must be quoted, such as buying or selling unlisted Indian shares above INR 1,00,000.

Section 262(1) lists six groups of persons who "shall" apply. Three of them matter to a foreign company.

1. Clause (a). Total income above the amount not chargeable to tax.
2. Clause (b). A business or profession with sales, turnover or gross receipts likely to exceed INR 5,00,000.
3. Clause (c). Any person required to file a return under section 263.

Clause (d) applies only to a resident that is not an individual. Clause (e) covers the directors, partners and officers of that resident, whatever their own residence. Clause (f) covers transactions the Board prescribes, and rule 159 lists them.

A foreign company with Indian income usually falls within clause (c). Section 207(8) is the one escape. It removes the return only where all income is dividend, interest, royalty or technical fees under section 207. The payer must also have deducted tax at the section 207 rate. A treaty rate below that rate does not meet the test. In our practice, that means most foreign parents that claim treaty rates still need a return, and so a PAN.

Situation for a foreign company	PAN needed?	Legal basis
Files an Indian income tax return	Yes	Section 262(1)(c), section 263
Has a branch, project office or permanent establishment with taxable profit	Yes	Section 262(1)(a) and (c)
Receives dividend, interest, royalty or fees with tax deducted at the full section 207 rate, and has no other Indian income	Not for the return; still useful	Section 207(8)
Receives Indian income at a treaty rate below the section 207 rate	In practice yes, because a return is due	Sections 207(8), 263
Applies for a lower or nil TDS certificate in Form 128	Yes	Form 128 FAQ Q10
Wants a refund of excess TDS	Yes, to file the return	Section 263; PAN is the login
Buys or sells shares of an unlisted Indian company above INR 1,00,000 per transaction	Yes, quote it	Rule 159, Table serial 9
Opens a bank account or a demat account in India	Yes, quote it	Rule 159, Table serials 2 and 12
Buys or sells Indian immovable property above INR 20,00,000	Yes, quote it	Rule 159, Table serial 11
Files Form 41 for a treaty claim	No	Guidance note on Form 41: PAN "is optional"
Pays an Indian vendor and must deduct TDS itself	Needs a TAN, a separate number	Section 397(1)

Sources: sections 207, 262 and 397 of the Income Tax Act, 2025; rule 159 of the Income Tax Rules, 2026; guidance note on Form 41; read 2 Oct 2026.

Rule 158(7) also sets the deadline. A person entitled to income from which tax is deductible must apply before the end of that tax year (Table serial 4). A person entering a rule 159 transaction must apply at least seven days before it (Table serial 7).

What is Form 49AA and what is it called under the Income Tax Act, 2025?

Form 49AA was the PAN application for foreign citizens and entities formed outside India, under rule 114 of the Income Tax Rules, 1962. From 1 Apr 2026, rule 158 of the 2026 Rules split it in two. Form 95 is for individuals who are not Indian citizens. Form 96 is for entities incorporated or formed outside India.

The department's guidance note groups four PAN forms. Form 49A, the form for Indian citizens and Indian entities, became Forms 93 and 94. The new numbers come from the official form mapping table.

New form (2026 Rules)	Old form (1962 Rules)	Who uses it
Form 93	Form 49A	Individuals who are citizens of India, including NRIs
Form 94	Form 49A	Indian companies, LLPs, firms, trusts and other entities formed in India
Form 95	Form 49AA	Individuals who are not citizens of India, including OCI and PIO card holders
Form 96	Form 49AA	Companies, LLPs, firms, trusts and associations incorporated or formed outside India

Source: Income Tax Department, FAQs and guidance notes on forms as per Income Tax Rules, 2026, and guidance note on Forms 93 to 96; read 2 Oct 2026.

Form 94 is not the foreign entity form. Some summaries of the new numbering place foreign applicants in "Forms 94 to 96". The guidance note keeps Form 94 for entities formed in India.

The legal base also moved. The rest of the law around PAN moved with it.

Topic	Income Tax Act, 1961 and 1962 Rules	Income Tax Act, 2025 and 2026 Rules
Duty to apply for and quote PAN	Section 139A	Section 262
Application forms and documents	Rule 114, Forms 49A and 49AA	Rule 158, Forms 93 to 96
Transactions where PAN must be quoted	Rule 114B	Rule 159
Higher TDS where PAN is not furnished	Section 206AA	Section 397(2)
Relief for non residents without PAN	Rule 37BC	Rule 217
Penalty for PAN defaults	Section 272B	Section 467
Representative of a non resident	Section 160	Section 303
Meaning of non resident	Section 2(30)	Section 2(72)
Special tax rates for foreign companies	Section 115A	Section 207
Return of income	Section 139(1)	Section 263
Treaty information form	Form 10F, section 90(4)	Form 41, section 159(8)
TDS on payments to non residents	Section 195	Section 393(2), Table serial 17
Lower deduction certificate	Section 197, Form 13	Section 395(1), Form 128
TDS certificate	Form 16A	Form 131

Sources: CBDT navigator mapping old and new sections; section 262, section 397, section 467 and rules 158, 159 and 217 on incometaxindia.gov.in; PAN FAQ Q27 (section 303); official form map; read 2 Oct 2026.

Our note on the Income Tax Act, 2025 maps the other sections a foreign owned company uses.

What documents does a foreign company need for PAN?

A foreign company files one document as proof of identity, address and date of incorporation. Rule 158(8)(b), Table serial 11, asks for a copy of its home country certificate of registration. An apostille or an Indian mission must attest it. An entity already registered in India may instead file its Indian registration or office approval.

The rule offers four routes for the certificate. They are in the same column of the rule 158 table, so one attested certificate covers identity, address and date of incorporation.

Route	What the rule says	When we use it
Apostille	Attested by "Apostille" for countries that signed the Hague Apostille Convention of 1961	First choice where the home country is a party to the Convention
Indian embassy, High Commission or Consulate	Attested by the Indian mission "in the country where the applicant is located"	Where the home country is not a party to the Convention
Overseas branch of an Indian scheduled bank	Attested by "authorised officials of overseas branches of Scheduled Banks registered in India"	Where an Indian bank has a branch near the company and the mission route is slow
Indian registration or approval	"Copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities"	A foreign company with a branch, liaison or project office already approved in India

Source: rule 158(8)(b), Table serials 10 to 13, Income Tax Rules, 2026; read 2 Oct 2026.

The same wording applies to an LLP registered outside India (serial 10), a firm (serial 12) and a trust or association (serial 13). The registration number is "mandatory for Company and Limited Liability Partnership", per the Protean instructions.

Form 96 makes some fields compulsory. The guidance note says contact details "have been made mandatory for all the applicants". Protean's instructions add the points below.

Field in Form 96	Requirement	Source
Full name of the entity	No abbreviations of the legal form	Protean instructions
Date of incorporation	Date of incorporation for a company, of registration for an LLP	Protean instructions
Registration number	Mandatory for a company and an LLP	Protean instructions
Taxpayer Identification Number (TIN) in the country of residence	Mandatory	Form 96 FAQ Q3; Protean instructions
Country of residence and office address abroad	Mandatory	Protean instructions
Mobile number with country code and email	Mandatory	Guidance note on Forms 93 to 96
Status of applicant	Select one option	Protean instructions
Source of income	Select at least one option	Protean instructions
Assessing Officer code	An international taxation AO code; default DLC-C-35-1 (Delhi) if not known	Protean instructions
Representative assessee or authorised representative	Name, Indian address (except for FPIs), mobile, email and PAN or Aadhaar	Guidance note; Protean instructions
Signature	Authorised signatory, with name, capacity and place	Protean instructions

Sources: guidance note and FAQs on Forms 93 to 96; Protean guidelines and instructions for Forms 95 and 96; read 2 Oct 2026.

The representative must also prove identity and address. FAQ 8 on the PAN forms says an authorised representative or representative assessee files those proofs "beyond applicant documents".

Who signs Form 96 and does the company need an Indian address?

An authorised signatory of the foreign company signs Form 96, such as a director. The PAN does not need an Indian office address. Protean's instructions do require an Indian address for the representative assessee or authorised representative. Foreign portfolio investors (FPIs) are the only stated exception.

FAQ 7 on the PAN forms says an authorised representative or representative assessee "can file the PAN application on behalf of applicant". Section 303 of the Income Tax Act, 2025 lets a non resident be represented (PAN FAQ Q27).

In our practice, the representative is one of three people:

1. a director of the Indian subsidiary;
2. the Chartered Accountant who will file the return; or
3. an Indian employee or agent with authority.

We ask the board of the foreign company to pass a resolution naming the signatory and the representative. Protean does not list the resolution as a document. Banks and the tax officer later ask who authorised the person, so we keep it on file.

The communication address decides where the physical card goes. A foreign address means the card travels abroad and costs more. Protean's FAQ says a communication address that differs from the office address needs its own proof.

How do you apply for a PAN as a foreign company?

Apply online on the Protean or UTIITSL portal in Form 96 and pay the fee. Then post the attested registration certificate and the signed acknowledgement to the PAN unit. Protean wants the papers within 15 days of the online application. A DSC route on Protean avoids posting paper.

The FAQ on the PAN forms names three routes: the Protean portal, the UTIITSL portal, or a PAN centre. FAQ 5 adds a fourth route for FPIs, through the Common Application Form of SEBI.

Step	Protean (physical mode)	Protean paperless mode (DSC)	UTIITSL
Where to start	onlineservices.proteantech.in, Form 96	The DSC based application link on the Protean PAN page	pan.utiitsl.com, PAN for foreign citizen or foreign entity
Fee, card posted abroad	INR 1,017 with taxes	INR 1,011 with taxes	INR 1,017 with taxes (department FAQ 12)
Fee, card posted in India	INR 107	INR 101	INR 107 (department FAQ 12)
Fee, ePAN only	INR 72	INR 66	Check the amount at the payment step
Payment	Demand draft payable at Mumbai to Protean, or card or net banking for some countries	Card or net banking	Online
Documents	Post to Pune within 15 days	Upload with digital signature	Post as instructed on the portal
Status	Track with the 15 digit acknowledgement number after three days	Same	Track on the portal

Sources: Protean PAN index page, guidelines for Forms 95 and 96 and PAN FAQs; UTIITSL PAN home page; Form 93 to 96 FAQ Q12; read 2 Oct 2026.

The Protean posting address is: Income Tax PAN Services Unit, Protean eGov Technologies Limited, 4th Floor, Sapphire Chambers, Baner Road, Baner, Pune 411045. Write "APPLICATION FOR PAN" and the acknowledgement number on the envelope.

Protean says a non individual applicant does not need a seal or stamp on the form. The authorised signatory signs the acknowledgement. Protean's pages still carry the old "Form 49AA" label in places, such as the Hindi part of its guidelines. The guidelines themselves name Form 95 and Form 96.

What does a foreign company PAN cost in 2026?

A foreign company pays INR 1,017 including taxes when the physical PAN card goes to an address outside India. The fee is INR 107 for a card sent to an Indian address, and INR 72 or INR 66 for an ePAN only. The figures come from Protean's guidelines and the department's FAQ 12.

Option	Fee with taxes	Who it suits
Physical card to a foreign address, physical documents	INR 1,017	A foreign company with no Indian representative address for dispatch
Physical card to a foreign address, paperless with DSC	INR 1,011	A signatory with a digital signature that the portal accepts
Physical card to an Indian address	INR 107	A company whose representative in India collects the card
Physical card to an Indian address, paperless	INR 101	As above, with a DSC
ePAN only, physical documents	INR 72	A company that needs only the PAN number and PDF
ePAN only, paperless	INR 66	The cheapest route

Sources: Protean guidelines for Forms 95 and 96; Form 93 to 96 FAQ Q12; read 2 Oct 2026.

The PAN FAQ on incometaxindia.gov.in still shows an older figure of "Rs. 93 + GST" in its Q15. It also shows Rs. 864 plus GST for a card sent abroad. Those figures are stale. We rely on the Protean and FAQ 12 figures above, which match each other.

The government fee is small next to the cost of the attestation. Apostille charges are set by the home country. Courier to Pune and the professional fee are the larger lines in most budgets.

Can a foreign company avoid higher TDS without a PAN?

Yes, on the reading that carries the old law forward. Rule 217 of the Income Tax Rules, 2026 switches off the higher PAN rate for five kinds of payment. They are interest, royalty, fees for technical services, dividends and payments on transfer of a capital asset. The payee must give the payer four sets of details. The relief does not reach business receipts or other payments.

Section 397(2)(a) makes every payee give its valid PAN to the payer. Section 397(2)(b)(i) then sets the penalty rate where it does not. The payer deducts at the higher of:

1. the rate in the relevant provision of the Act;
2. the rate or rates in force;
3. 5 percent for two specified resident payments in section 393(1); or
4. 20 percent in any other case.

Section 397(2)(c) holds the carve out for non residents. Clause (b)(i) does not apply to interest on long term bonds in section 393(2), Table serials 2 to 4. It also does not apply to "any other payment subject to such conditions, as may be prescribed". Rule 217 holds those conditions. It replaced rule 37BC.

One point of wording needs care. Old section 206AA(7) covered a non resident other than a company, and also a foreign company. Old rule 37BC named foreign companies too. The department's page for section 397(2)(c) prints that phrase with different punctuation. A strict reader could take it to leave foreign companies out.

We read the clause as carrying the old meaning forward, because rule 217 keeps the rule 37BC conditions. Read the section page, and ask the payer how it reads the clause, before relying on rule 217. A PAN removes the question.

Detail the foreign company gives the payer	Rule 217	Old rule 37BC
Name, email and contact number	Required	Required
Address in the country of residence	Required	Required
Tax residency certificate from its home government	Required if the home law provides for one	Required if the home law provides for one
Tax Identification Number in the country of residence, or a unique government number	Required	Required
Payments covered	Interest, royalty, fees for technical services, dividend, transfer of a capital asset	Same list

Sources: rule 217 of the Income Tax Rules, 2026; rule 37BC of the Income Tax Rules, 1962; read 2 Oct 2026.

Rule 217 also exempts a person who is "not required to apply for PAN in view of the provisions of section 262". Few foreign companies with Indian income sit there, because a return under section 263 usually pulls them in.

Payment to a foreign company without a PAN	Rule 217 details given	Rate the payer applies
Dividend	Yes	Treaty rate with TRC and Form 41, or 20% under section 207(1)
Dividend	No	20% under section 207(1) plus surcharge and cess (20.8% with cess alone), above the 20% floor in section 397(2)(b)(i)
Royalty or fees for technical services	Yes	Treaty rate with TRC and Form 41, or 20% under section 207(2)
Royalty or fees for technical services	No	20% under section 207(2) plus surcharge and cess, above the 20% floor
Long term capital gain on unlisted shares	Yes	12.5% on the gain, or the treaty position
Long term capital gain on unlisted shares	No	The 20% floor in section 397(2)(b)(i), because it exceeds 12.5%; 20.8% if the payer adds cess
Business receipts or other income	Not covered	The rate in force, 35% for a foreign company plus surcharge and cess, as it exceeds 20%
Interest on bonds in section 393(2), Table serials 2 to 4	Not needed	The concessional rate in section 393(2)

Sources: sections 207, 393(2) and 397(2) of the Income Tax Act, 2025; rule 217; read 2 Oct 2026.

Surcharge and cess apply on top of the section 207 rates and the other rates in force. Section 397(2) does not mention surcharge or cess. So the statute is silent on whether they sit on top of the flat 20 percent.

For dividends, royalty and technical fees the point rarely matters. A payer applying the section 207 rate of 20 percent adds 4 percent cess in any case. That gives 20.8 percent, which is above the flat 20 percent. Where the floor itself applies, such as a gain taxed at 12.5 percent, the conservative figure is 20.8 percent. A payer that deducts 20 percent flat should record its reason.

A foreign company can file Form 41 without a PAN, so the treaty rate is open on paper. The trouble comes later. Form 131, the TDS certificate, issues only where the payee is reported with a valid PAN. Without a PAN, the foreign company cannot file a return, claim a refund, or apply for a Form 128 certificate.

Our guide to TDS on payments to non residents explains each rate. The Form 128 guide covers the lower deduction certificate.

How long does PAN allotment take for a foreign company?

No official page states a processing time for Form 96. Protean lets the applicant track status three days after the online application. Physical documents must reach Pune within 15 days. The ePAN goes to the email in the form once the PAN is allotted.

The longest step sits outside India. The apostille or embassy attestation depends on the home country. We plan backwards from the first Indian payment, not from the day the form goes in.

Stage	Official time limit	Our planning note
Get a certified copy of the registration certificate	None	Order it from the home registry first
Apostille or Indian mission attestation	None	Check whether the home country is a party to the Hague Apostille Convention
Online Form 96 and fee	None	Fill it only once the attested copy is in hand
Posting documents to the PAN unit	Within 15 days of the online application (Protean)	Use a tracked courier and keep the receipt
Status tracking	From three days after application (Protean FAQ)	Track with the 15 digit acknowledgement number
ePAN by email	On allotment (PAN FAQ)	The email in the form receives the PDF
Physical card	On dispatch	A foreign address adds courier time
Apply before a rule 159 transaction	At least seven days before (rule 158(7))	Earlier, because the bank or buyer needs the number
Apply where tax is deductible from Indian income	Before the end of that tax year (rule 158(7))	Before the first invoice, so the payer has the PAN

Sources: rule 158(7); Protean guidelines and FAQ; incometaxindia.gov.in PAN FAQ; read 2 Oct 2026.

FAQ 9 on the PAN forms says "incomplete applications are treated as invalid". FAQ 16 says a rejected application needs a fresh one. FAQ 10 bars edits after submission, so a wrong date of incorporation means a correction request after allotment.

Does a foreign parent need PAN to invest in its Indian subsidiary?

Not for the investment itself under FEMA, in our practice, but the parent will need one soon after. Rule 159, Table serial 9, requires a PAN for sale or purchase of unlisted shares above INR 1,00,000 per transaction. Dividends, share transfers and buybacks all bring withholding and a return.

The non resident exemption in rule 159(6)(b) covers only serials 1, 3, 15 and 16. Serial 9 on unlisted shares is not among them. So a foreign parent selling or buying shares of its Indian subsidiary above INR 1,00,000 must quote a PAN. Rule 159 does not define whether a fresh allotment of shares is a "purchase". We advise a parent to get its PAN before the first allotment and avoid the question.

The PAN matters most at three later points.

1. Dividends. The subsidiary deducts tax on the dividend under section 393(2). A treaty rate below 20 percent usually leaves the parent with a return to file. Our dividend guide covers the rates.
2. Share transfer. A resident buyer deducts tax on the parent's gain. The parent quotes a PAN under rule 159 serial 9. Our FC-TRS guide covers the FEMA filing.
3. Service and royalty fees. Cross charges from the parent bring TDS, Form 145 and often a treaty claim. Our Form 15CA and 15CB guide covers the remittance forms.

Still setting up? Our guide on how to set up a subsidiary in India for a US company shows where the PAN fits.

Does a foreign national director or shareholder need Form 95?

A foreign national needs Form 95 only if section 262 or rule 159 catches that person. A foreign director with Indian salary or fees, or one who sells unlisted Indian shares, needs a PAN. An Indian citizen living abroad uses Form 93, not Form 95.

Section 262(1)(e) adds the directors and officers of a resident entity whose financial transactions reach INR 2,50,000 in a tax year. The clause has no exception for foreign nationals, so a foreign director of an Indian subsidiary is within it. Rule 158(7) gives that person until 31 May after the tax year.

Form 95 asks for a passport, OCI card, PIO card, or a national ID attested by apostille or an Indian mission, as proof of identity. Rule 158 allows a wider list for address proof. It includes a bank statement in the country of residence and an NRE account statement in India. It also lists a residence permit, an FRRO registration certificate, or a visa with an Indian employer's letter and address certificate.

Document	Form 95, foreign national	Form 93, Indian citizen abroad
Passport	Accepted as identity, address and date of birth	Passport number mandatory for NRIs (FAQ 19)
OCI or PIO card	Accepted	Not relevant
Foreign TIN	Mandatory (FAQ 20)	Mandatory for non residents (guidance note)
Bank statement in the country of residence	Accepted as address proof	See the Form 93 list
NRE account statement in India	Accepted as address proof	See the Form 93 list
Aadhaar	Not required	Mandatory unless exempt (Form 93 FAQ 4)
Attestation	Apostille, Indian mission, or overseas branch of an Indian scheduled bank, for national ID documents	Not needed for Indian documents

Sources: rule 158(8)(b); Form 93 to 96 FAQs; guidance note on Forms 93 to 96; read 2 Oct 2026.

Section 262(8) bars a second PAN. A director who already holds one from an earlier Indian job must use it and update the details. Section 467(1) allows a penalty of INR 10,000.

What happens after the PAN is allotted?

The foreign company gives the PAN to every Indian payer under section 397(2)(a). It quotes the PAN in its return, its Form 41 and its Form 128 if it applies for one. Section 262(4) requires it to report a change of address or name.

Next step	Form or section	Why it matters
Give the PAN to each Indian payer in writing	Section 397(2)(a)	The payer reports it in Form 144 so credit flows to the annual tax statement
Register on the income tax filing portal	Section 263	Needed to file the return and see the annual statement
File Form 41 for each tax year with a treaty claim	Section 159(8)(b), rule 75	Needed with the TRC for treaty rates
Collect Form 131 TDS certificates from each payer	Section 395(4)	Issued only where a valid PAN is reported
Apply for a lower deduction certificate if tax deducted exceeds the real tax	Form 128, section 395(1)	Needs the PAN
File the return by the due date	Section 263	Claims treaty relief and any refund
Report change of name or address	Section 262(4), correction request	Avoids notices going to an old address

Sources: sections 159, 262, 263, 395 and 397, Income Tax Act, 2025; rule 215; guidance note on Form 41; read 2 Oct 2026.

For a liaison office, the PAN also goes on Form 162, the annual statement under section 505. Our guide to liaison office rules covers it.

What are the penalties for PAN defaults?

Section 467 of the Income Tax Act, 2025 allows a penalty of INR 10,000 for each PAN default. It replaced section 272B. The bigger cost for a foreign company is usually the higher TDS under section 397(2) and the refund it cannot claim.

Default	Section	Consequence
Failing to comply with section 262, such as not applying when required	467(1)	Penalty of INR 10,000
Quoting a false PAN in a rule 159 document, knowing it to be false	467(2)	INR 10,000 for each default
Failing to quote or authenticate a PAN in a rule 159 document	467(3)	INR 10,000 for each default
A bank or other receiver failing to ensure correct quoting	467(4)	INR 10,000 for each default on that person
Not furnishing a PAN to the payer	397(2)(b)(i)	Tax deducted at the higher rate, unless rule 217 applies
Holding two PANs	262(8), 467	INR 10,000 (PAN FAQ Q36); surrender the extra PAN

Sources: sections 262, 397 and 467 of the Income Tax Act, 2025; PAN FAQ Q36; read 2 Oct 2026.

What changed in 2026

The Income Tax Act, 2025 and the Income Tax Rules, 2026 took effect on 1 Apr 2026. The Rules were notified as G.S.R. 198(E) of 20 Mar 2026. Form 49AA was split, and every PAN rule got a new number.

Topic	Old rule	New rule	Date	Instrument
Form for a foreign entity	Form 49AA	Form 96	1 Apr 2026	Rule 158(1), Income Tax Rules, 2026
Form for a foreign individual	Form 49AA	Form 95	1 Apr 2026	Rule 158(1)
Legal base for PAN	Section 139A	Section 262	1 Apr 2026	Income Tax Act, 2025
Documents for a foreign company	Rule 114	Rule 158(8)(b), Table serial 11; same four routes	1 Apr 2026	Income Tax Rules, 2026
Contact details	Not mandatory for all applicants	Mobile and email mandatory for all applicants	1 Apr 2026	Guidance note on Forms 93 to 96
TIN of a foreign applicant	Asked for in Form 49AA	Mandatory	1 Apr 2026	Form 96 FAQ Q3
Representative's details	Asked for in Form 49AA	Mobile, email and PAN or Aadhaar mandatory	1 Apr 2026	Guidance note on Forms 93 to 96
Higher TDS without PAN	Section 206AA	Section 397(2)	1 Apr 2026	Income Tax Act, 2025
Relief for non residents without PAN	Rule 37BC	Rule 217, same details and payments	1 Apr 2026	Income Tax Rules, 2026
Penalty	Section 272B	Section 467	1 Apr 2026	Income Tax Act, 2025
Treaty information form	Form 10F	Form 41, PAN optional	1 Apr 2026	Rule 75

Sources: Income Tax Act, 2025; Income Tax Rules, 2026; official form map and guidance notes; read 2 Oct 2026.

A PAN allotted on Form 49AA before 1 Apr 2026 stays valid. Section 262(8) stops the company from applying again. No fresh application is needed because the form changed.

Worked example

Both examples assume a US parent of an Indian Private Limited subsidiary in tax year 2026-27. The US treaty dividend rate is 15 percent for a parent company holding at least 10 percent of the voting shares. Section 207(1) sets 20 percent on dividends. Cess is 4 percent, and surcharge does not apply because the income is below INR 1 crore.

Scenario 1: an INR 80,00,000 dividend.

Line	No PAN, no rule 217 details	No PAN, rule 217 details, TRC and Form 41	PAN, TRC and Form 41
Dividend paid (INR)	80,00,000	80,00,000	80,00,000
Rate applied	20.8% (20% under section 207(1) plus 4% cess)	15% treaty rate	15% treaty rate
Tax deducted (INR)	16,64,000	12,00,000	12,00,000
Form 131 issued to the parent	No	No	Yes
Can the parent file a return and claim credit	No	No	Yes
Cash the parent receives (INR)	63,36,000	68,00,000	68,00,000

The arithmetic: 80,00,000 × 20.8% = 16,64,000, and 80,00,000 × 15% = 12,00,000. The gap is INR 4,64,000. Without a TRC the treaty rate is not open. The payer applies 20 percent under section 207(1) plus 4 percent cess, which is above the flat 20 percent in section 397(2). The statute is silent on cess over that flat rate. A payer that deducts 20 percent flat withholds INR 16,00,000, and the gap is INR 4,00,000.

Rule 217 saves the INR 4,64,000 at the payment stage. The middle column still leaves the parent without a Form 131 and without a return. If the US parent later needs a US foreign tax credit, the missing Indian certificate becomes the problem.

Scenario 2: technical fees where India may have no tax.

The subsidiary pays the parent INR 60,00,000 for engineering support. The parent's position is that the services do not "make available" technical knowledge under the US treaty, so India cannot tax them.

1. The subsidiary has no certificate. It deducts at the 15 percent treaty rate: 60,00,000 × 15% = INR 9,00,000.
2. The parent believes its Indian tax is nil, so all INR 9,00,000 is a refund claim.
3. Without a PAN, the parent cannot file Form 128 before payment. It cannot file a return after.
4. With a PAN, it can apply in Form 128 for a nil certificate, or file a return and claim INR 9,00,000 back.

The cost of the PAN is INR 1,017 plus attestation. The money at stake is INR 9,00,000. The treaty position itself needs its own review; the Form 128 guide explains how the officer tests it.

Common mistakes

1. Filing Form 94 for a foreign company. Form 94 is for entities formed in India. Fix: use Form 96 for any entity incorporated or formed outside India.
2. Sending a plain copy of the registration certificate. Rule 158 requires apostille, Indian mission or Indian bank branch attestation. Fix: order the attestation first and file only once it is in hand.
3. Leaving out the foreign TIN. The TIN is now mandatory. Fix: take it from the home tax registration and match the spelling of the name.
4. Naming a representative with no Indian address. Protean requires an Indian address for the representative, except for FPIs. Fix: name a subsidiary director, the Indian CA or an Indian employee.
5. Missing the 15 day posting window. Protean wants the papers within 15 days of the online form. Fix: post the same week and keep the courier receipt.
6. Abbreviating the company name. Protean bars short forms of the legal form. Fix: write the name exactly as on the registration certificate.
7. Applying for a second PAN. Section 262(8) bars it, and section 467 allows a penalty. Fix: search old Indian records and use the existing PAN with a correction request.
8. Assuming rule 217 covers every payment. It covers interest, royalty, technical fees, dividends and capital asset transfers. Fix: get a PAN before any business or other receipt.
9. Treating rule 217 as a substitute for a PAN. The payer cannot issue Form 131 without a PAN. Fix: use rule 217 only as a stopgap while the PAN is pending.
10. Forgetting to tell the payer. A PAN the payer never receives does nothing. Fix: send the PAN and ePAN to every Indian payer in writing under section 397(2)(a).

Checklist for a foreign company PAN application

1. Confirm the company needs a PAN under section 262 or rule 159.
2. Check the old records for an existing PAN, to avoid a second one.
3. Order a certified copy of the certificate of registration from the home registry.
4. Get it attested by apostille, by the Indian mission, or by an Indian bank's overseas branch.
5. Collect the foreign TIN, registration number, date of incorporation, and the office address abroad.
6. Choose the representative and record the Indian address, mobile, email and PAN or Aadhaar.
7. Pass a board resolution naming the authorised signatory and the representative.
8. Pick the international taxation AO code, or use the default DLC-C-35-1.
9. Fill Form 96 online on Protean or UTIITSL and pay the fee.
10. Sign the acknowledgement as the authorised signatory.
11. Post the acknowledgement and attested documents to the PAN unit within 15 days.
12. Track the status with the 15 digit acknowledgement number.
13. Save the ePAN and send the PAN to every Indian payer in writing.
14. Register on the income tax filing portal and file Form 41 for the tax year.

If you want us to prepare the Form 96 pack and act as the Indian representative, our FEMA compliance team can help.

Frequently Asked Questions

Is Form 49AA still valid in 2026?+

No. From 1 Apr 2026, rule 158 of the Income Tax Rules, 2026 prescribes Forms 93 to 96 for PAN. Form 49AA was split into Form 95 for foreign individuals and Form 96 for foreign entities. Protean's pages still carry the old "Form 49AA" label in places, but its guidelines name Form 95 and Form 96. A PAN allotted on Form 49AA before that date stays valid.

Which form does a foreign company use to apply for PAN?+

A company incorporated outside India uses Form 96. The same form covers an LLP, firm, trust or association formed outside India. Form 94 is for entities formed in India. The guidance note on Forms 93 to 96 on incometaxindia.gov.in confirms the split, under section 262 and rule 158.

What is the fee for a PAN for a foreign company?+

Protean charges INR 1,017 including taxes where the physical card goes to a foreign address. It charges INR 107 for an Indian address and INR 72 for an ePAN only. The paperless DSC route costs INR 1,011, INR 101 and INR 66. FAQ 12 on Forms 93 to 96 gives the same main figures.

Does a foreign company need an apostille for its PAN application?+

Yes, unless it uses another route in rule 158. The certificate of registration must be attested by apostille where the country is a party to the Hague Apostille Convention. Otherwise an Indian embassy, High Commission or Consulate can attest it. An official of an Indian scheduled bank's overseas branch is the third option.

Can a foreign company use its Indian branch or liaison office approval instead?+

Yes. Rule 158(8)(b), Table serial 11, accepts an Indian registration certificate. It also accepts an "approval granted to set up office in India by Indian Authorities". A foreign company with an approved branch, liaison or project office can file that copy instead of an attested home country certificate.

Does a foreign company need an Indian address for PAN?+

The company itself gives its office address abroad. Protean's instructions for Form 96 require an Indian address for the representative assessee or authorised representative, except for FPIs. The physical card can go to a foreign or Indian address, and the fee differs.

Is the foreign Tax Identification Number mandatory in Form 96?+

Yes. FAQ 3 on Form 96 says the TIN "is mandatory" for foreign entities. Protean's instructions repeat it. Use the number issued by the tax authority of the country of residence, and match the name to the registration certificate.

What is the TDS rate if a foreign company has no PAN?+

Section 397(2)(b)(i) of the Income Tax Act, 2025 applies the highest rate. The options are the rate in the Act, the rate in force, or 20 percent. Rule 217 removes this for interest, royalty, technical fees, dividends and capital asset transfers, if the company gives the rule 217 details. Other payments, such as business receipts, stay at the higher rate. The statute is silent on surcharge and cess over the flat 20 percent.

What details does a foreign company give under rule 217?+

It gives its name, email and contact number, and its address in the country of residence. It adds a tax residency certificate if its home law provides one. It also gives its Tax Identification Number, or a unique government number. Rule 217 replaced rule 37BC from 1 Apr 2026.

Can a foreign company file Form 41 without a PAN?+

Yes. The guidance note on Form 41 says PAN "is optional". A non resident without a PAN registers on the income tax portal with an OTP to phone and email. Form 41 is required under section 159(8)(b) and rule 75 for a treaty claim, along with a tax residency certificate.

Can a foreign company get a lower TDS certificate without a PAN?+

No. Form 128 FAQ Q10 says the application cannot be submitted without a PAN. Form 128 under section 395(1) replaced Form 13 from 1 Apr 2026. A foreign company that expects its Indian tax to be below the deduction should get a PAN first, then apply on TRACES.

Who can sign Form 96 for a foreign company?+

An authorised signatory of the company, such as a director, signs Form 96 with name, capacity and place. FAQ 7 on Forms 93 to 96 lets an authorised representative or representative assessee file on the company's behalf. Section 303 of the Income Tax Act, 2025 allows a non resident to be represented.

What is the penalty for not applying for PAN when required?+

Section 467(1) of the Income Tax Act, 2025 allows the Assessing Officer to impose INR 10,000 for failing to comply with section 262. Sections 467(2) to (4) add INR 10,000 for each false or missing PAN in a rule 159 document. Section 467 replaced section 272B.

When must a foreign company apply for its PAN?+

Rule 158(7) sets the dates. A person entitled to income from which tax is deductible must apply before the end of that tax year. A person entering a rule 159 transaction must apply at least seven days before it. We apply before the first Indian invoice or dividend.

Can a foreign company hold two PANs?+

No. Section 262(8) says a person with a PAN "cannot apply, obtain or possess another". PAN FAQ Q36 says a penalty of INR 10,000 applies under section 467. A company that finds a second PAN should surrender it and keep the one it has used in returns.

How does a foreign company change the address on its PAN?+

Section 262(4) requires it to tell the Assessing Officer of any change in address or name. In practice, it files a PAN change or correction request on the Protean or UTIITSL portal. FAQ 10 on Forms 93 to 96 says the original application cannot be edited after submission.

Does an FPI use the same route?+

An FPI also applies in Form 96. FAQ 5 on Forms 93 to 96 says FPIs can apply through the Common Application Form of SEBI. Protean's instructions let an FPI give a foreign address for its representative. Other foreign companies must give an Indian address for the representative.

Sources

• Income Tax Department, FAQs and guidance notes on forms as per Income Tax Rules, 2026 (form mapping), read 2 Oct 2026, https://www.incometaxindia.gov.in/faqs-and-guidance-notes-on-forms-as-per-income-tax-rules-2026
• Income Tax Department, Guidance note on Forms 93, 94, 95 and 96, read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/d/guest/fn-93-94-95-96
• Income Tax Department, FAQs on Forms 93, 94, 95 and 96 (earlier Forms 49A and 49AA), read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/d/guest/form-93-94-95-96-faqs
• Income Tax Department, Section 262, Income Tax Act, 2025, read 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-262-72
• Income Tax Department, Rule 158, Income Tax Rules, 2026, read 2 Oct 2026, https://www.incometaxindia.gov.in/w/rule-158-1
• Income Tax Department, Rule 159, Income Tax Rules, 2026, read 2 Oct 2026, https://www.incometaxindia.gov.in/w/rule-159-1
• Income Tax Department, Section 397, Income Tax Act, 2025, read 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-397-6
• Income Tax Department, Rule 217, Income Tax Rules, 2026, read 2 Oct 2026, https://www.incometaxindia.gov.in/w/rule-217-1
• Income Tax Department, Rule 37BC, Income Tax Rules, 1962, read 2 Oct 2026, https://www.incometaxindia.gov.in/w/rule-37bc
• Income Tax Department, Section 467, Income Tax Act, 2025, read 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-467-6
• Income Tax Department, Section 207, Income Tax Act, 2025, read 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-207-78
• Income Tax Department, Guidance note on Form 41, read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/d/guest/fn-41
• Income Tax Department, FAQs on Form 128 (earlier Form 13), read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/d/guest/form-128-faqs
• Income Tax Department, FAQs on Permanent Account Number, read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/d/guest/faqs-on-permanent-account-number
• Income Tax Department, Income Tax Bill 2025 navigator (old to new sections), read 2 Oct 2026, https://www.incometaxindia.gov.in/documents/20117/43138/new-income-tax-bill-2025-navigator.pdf/8df3eecc-8a0d-e28d-85c7-4db6310a52dd
• Protean eGov Technologies Limited, PAN services index, read 2 Oct 2026, https://tinpan.proteantech.in/services/pan/pan-index.html
• Protean eGov Technologies Limited, Guidelines for Forms 95 and 96, read 2 Oct 2026, https://tinpan.proteantech.in/services/pan/form-form_95-form-96.html
• Protean eGov Technologies Limited, Instructions for Forms 95 and 96, read 2 Oct 2026, https://tinpan.proteantech.in/services/pan/instructions-form_95-form-96.html
• Protean eGov Technologies Limited, PAN FAQs, read 2 Oct 2026, https://tinpan.proteantech.in/faqs/pan/faq-pan-procedure.html
• UTIITSL, PAN services home page, read 2 Oct 2026, https://www.pan.utiitsl.com/