CBDT Eases PAN Application Procedures for Foreign Portfolio Investors Following SEBI's Investor Concerns Alerts to Tax Authorities
CBDT Introduces Relaxations in PAN Application Requirements for FPIs
The Central Board of Direct Taxes (CBDT) has introduced a set of relaxations in PAN application requirements for Foreign Portfolio Investors (FPIs) as a relief measure, following consultations between the Securities and Exchange Board of India (SEBI) and the CBDT. The move aims to ensure smoother onboarding for overseas investors.
The CBDT had notified revised PAN application forms under the new Income-tax Rules on March 20, 2026, introducing additional fields such as Taxpayer Identification Number (TIN), details and documents relating to Representative Assessees or Authorized Representatives, and mandatory mobile number requirements. However, stakeholders raised concerns that these changes created practical difficulties for FPIs seeking PAN allotment in India.
In response, SEBI engaged with the CBDT to address concerns raised by foreign investors and intermediaries. Following these discussions, CBDT issued a series of clarifications intended to simplify compliance procedures.
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Under the revised framework, the name of the Authorized Signatory mentioned in the Common Application Form (CAF) will be accepted for the Representative Assessee or Authorized Representative field. CBDT also clarified that no supporting documents for the Authorized Signatory, Representative Assessee, or Authorized Representative would be required for PAN applications.
| Compliance Requirement | Original Requirement | Revised Requirement |
|---|---|---|
| Representative Assessee or Authorized Representative field | Name and supporting documents | Name of Authorized Signatory (AS) as captured in CAF |
| Supporting documents for Authorized Signatory, Representative Assessee, or Authorized Representative | Required | Not required |
| PAN, Aadhaar, or passport number of Authorized Signatory | Mandatory | FPI registration number or "0000000000" in case of non-availability |
| Mobile number | Mandatory | Landline number allowed in case of unavailability |
The apex tax body further stated that where details such as PAN, Aadhaar, or passport number of the Authorized Signatory are unavailable, FPIs may furnish their FPI registration number instead. In jurisdictions where a Taxpayer Identification Number does not exist, applicants can fill the TIN field with “0000000000.” Additionally, CBDT has allowed FPIs to provide landline numbers in cases where mobile numbers are unavailable, addressing another operational hurdle highlighted by stakeholders.
SEBI stated that the measures are part of ongoing efforts to improve ease of onboarding for FPIs and strengthen India’s attractiveness as an investment destination.
Investor Takeaway
CBDT has eased PAN application procedures for Foreign Portfolio Investors following SEBI's concerns.
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