Definition
Your Permanent Account Number, which banks and money changers must record when you buy foreign exchange or pay for an overseas tour under LRS. It links the transaction to your tax records and decides your TCS rate. An inoperative PAN means higher TCS.
When you need PAN
- Buying foreign currency notes or loading a forex card
- Paying an Indian operator for an overseas tour package
- Sending money abroad under the LRS
For forex purchases above ₹50,000, payment also has to come from a bank account or card, not cash.
Why it matters
Your PAN goes on Form A2 and into the seller's TCS return. The TCS then shows in your Form 26AS and Annual Information Statement, so you can claim it in your ITR. If your PAN is not linked to Aadhaar, it is treated as inoperative and TCS is collected at a higher rate.
Whose PAN to use
The TCS credit goes to the person whose PAN is given. If a son pays ₹5 lakh for his parents' Europe tour from his own account and the parents don't file returns, it usually makes sense to book with the son as the payer, so he can claim the TCS. Your tour operator will ask whose PAN to put on the invoice; decide before you pay.
Example
A Lucknow retired couple books a Singapore–Malaysia tour for ₹2.6 lakh. Their PANs are linked to Aadhaar and they file returns, so the 2% TCS of about ₹5,200 is collected and credited against their tax when they file.
Practical advice
- Check PAN–Aadhaar linking on the Income Tax e-filing portal before booking.
- Make sure the name on your PAN matches your passport; spelling differences cause delays.
- Keep the TCS certificate from the operator or bank.
Buying travel forex usually needs your PAN, passport, visa and ticket. Our foreign exchange desk can tell you exactly what to bring, and TCS on foreign travel explains the rates.