As a relief measure for Foreign Portfolio Investors (FPIs), the Central Board of Direct Taxes (CBDT), the top body of the Income Tax Department, has introduced a set of relaxations in PAN application requirements after market participants flagged operational challenges arising from the newly notified Income-tax Rules, 2026. The move follows consultations between the Securities and Exchange Board of India (SEBI) and the CBDT aimed at ensuring smoother onboarding for overseas investors.
The CBDT had on March 20, 2026 notified revised PAN application forms under the new Income-tax Rules. The updated forms introduced additional fields such as Taxpayer Identification Number (TIN), details and documents relating to Representative Assessees or Authorized Representatives, and mandatory mobile number requirements. According to stakeholders, 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.
Under the revised framework, the name of the Authorized Signatory mentioned in the Common Application Form (CAF) will be accepted for the Representative Assessees 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. SEBI, in a press statement, stated that CBDT has clarified that, “For the purposes of the RA/AR field, the name of Authorised Signatory (AS) as captured in the CAF, who has been authorised by the FPI to sign the CAF shall suffice. In this regard, the liability of the AS named in the RA/AR field is solely limited to the purpose of applying for PAN. No supporting documents in respect of AS/RA/AR need to be furnished”.
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 said the measures are part of ongoing efforts to improve ease of onboarding for FPIs and strengthen India’s attractiveness as an investment destination.
