The Income Tax Department has unveiled a significant new move, as it has replaced the old Form 49AA with two different forms that have been designed to facilitate the PAN application process Form 95 and Form 96. Effective from 1 April 2026, this revision is intended to simplify PAN allocation for foreign applicants and the filing process and aid in making sure that applications are filled out correctly. Formalities like Form 49AA were used by all non-Indian citizens and foreigners looking for a PAN.
Because it included multiple types of applicants under a single form, it frequently confused and raised the likelihood of filing mistakes. To combat this, the government now has a two-part application process based on the type of applicant.
Form 95 is explicitly intended for non-Indian citizens, namely, for non citizens who are not residents of India. This encompasses any (foreign) person or persons who are not a resident of India and require a PAN for financial, tax or business reasons.
It's a much easier process to process and understandable process for foreigners by introducing a dedicated form. Form 96 on the other hand is for entities incorporated outside India. These are foreign companies, foreign partnership ventures, trusts, associations and non individual entities that require PAN registration for transactions or legal compliance in India for any specific activity or activity. Form 49AA shall be replaced by Form 95 and Form 96 which was implemented as part of a general overhaul of the PAN application process. This new design enables better categorization of applicants, and fewer paperwork missteps as they are processed in a faster manner.
It is also in line with the government’s intention to ‘digitalize’ and ‘make tax related services as simple and convenient as possible’. Applicants that were previously subject to the need to fill out Form 49AA must now be careful to ascertain which new application form is for them before applying to the PAN. Foreign citizens are required to use Form 95, overseas entities must submit Form 96. Such a reform should render PAN registration more efficient, transparent, and user-friendly to foreign applicants operating in and through the Indian financial and tax frameworks.
