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Permanent Account Number (PAN) has made obligatory to transfer money overseas for kid's education, to acquire property or shares in foreign countries.

In the absence of PAN one cannot be able to transcend the mere annual limits either. This attempt has been made by the government to make sure that money being transferred abroad is tax-paid money and to ensure that individuals stick to the limits prescribed by monitoring remittances closely.

The Reserve Bank of India has tightened the regulations for transferring money under Liberalized Remittance Scheme (LRS) and as well it has made PAN mandatory for anyone using this scheme.

The resident Indians use LRS to send money abroad for their children's education and as well for the investment purpose in foreign stocks and property. LRS was set up for the sake of Indian residents in 2004 and parents who sent their children abroad for studies mostly uses this scheme.

The scheme also lets resident Indian to buy stocks of foreign companies or to buy properties overseas. Using this scheme, one can invest or transfer money anywhere in the world.

Under each transaction, central bank has made PAN obligatory subsequently observing that several Indian businessmen, famous personalities and diamond merchants hurried to remit funds overseas to bet to stocks and rupture the specified limits under the scheme.

By Sowmya Sangam