Beldangi — Growing Interest in Personal PAN Card: Is It Mandatory for Housewifes and Unemployed Individuals?
As the scope of Nepal’s Personal Permanent Account Number (PAN) system continues to expand, questions are rising among the public in areas like Beldangi Bhutanese Refugee Camp — especially from housewives and unemployed individuals — about whether obtaining a personal PAN is mandatory.
According to tax experts, the current legal provisions do not require people without income to obtain a PAN. However, once someone begins receiving formal payments, employment, or professional income, a PAN becomes necessary.
What Is a Personal PAN?
A personal PAN (Permanent Account Number) is a unique taxpayer identification number issued by Nepal’s Inland Revenue Department (IRD). It helps record and track an individual’s tax-related information — such as salary deductions (TDS), income tax filings, and tax refunds — all under one number. The IRD provides an online e-PAN service that allows individuals to register for free through its official website.
Is It Mandatory for Housewifes and Unemployed Individuals?
If a person has no taxable income and no organization or payer requires a PAN number, obtaining one is not legally mandatory. Having a PAN does not automatically create a tax liability — taxes are only owed when there is taxable income.
Recommendation: If a person expects to earn income in the future — from employment, consultancy, NGO/INGO projects, or other formal sources — it is recommended to register for a PAN in advance. This makes it easier to receive TDS credits, file returns, or claim tax refunds when needed.
Uses and Importance of a PAN
- To record and verify TDS credits on salaries or service payments.
- To provide a taxpayer identity number for official payments from government bodies, banks, companies, or NGOs/INGOs.
- To match tax deducted at source from rent, contracts, royalties, dividends, or interest.
- To file income tax returns and claim refunds if applicable.
- To register small or individual businesses using the PAN as a taxpayer base number.
- To promote tax transparency and documentation for audits, tax clearance, and other government processes.
Can a PAN Card Be Used as an Identity Card?
A PAN card is not an official identity document in Nepal. It is a tax identification card, meant for financial and tax purposes only.
Where a PAN Can Be Used
- For financial transactions such as salary payments or tax filing.
- As supporting identification in offices, banks, or government agencies that require income verification.
- To prove taxpayer identity in business or professional services.
Where a PAN Cannot Be Used
- It cannot be used as a legal identity document for travel, border crossings, or police verification.
- It does not replace a citizenship certificate, passport, or refugee ID card.
- It is not valid for immigration or national identity purposes.
In short, a PAN card identifies your tax record, not your citizenship. Nepali citizens should use their citizenship or passport, and refugees should use their refugee ID card for official identity verification.
PAN Registration for Bhutanese Refugees
In the Beldangi Bhutanese Refugee Camp of Jhapa, most refugees remain unemployed and without a steady source of income. In such cases, obtaining a PAN card is not necessary. However, if a refugee begins earning income through employment, consultancy, business, rent, or any formal project in Nepal, they must register for a PAN for tax purposes and comply with TDS and tax rules.
Required documents for non-citizens or refugees may include a passport, visa, refugee ID card, or valid identification issued by an authorized agency. Since accepted documents can vary, it is best to confirm with the nearest Inland Revenue Office (IRO) in Damak.
How to Apply for an e-PAN (Simplified Process)
- Visit the official IRD website: ird.gov.np.
- Go to e-Services → Taxpayer Registration → Individual PAN.
- Fill in personal details, address, and contact information (mobile/email).
- Upload citizenship and photo (for Nepali citizens) or valid ID (for foreigners/refugees).
- Once approved, download the e-PAN or collect a certified copy from the Damak IRO if needed.
Conclusion
For housewives and unemployed individuals without any income, obtaining a personal PAN is generally not mandatory. Holding a PAN card does not mean you have to pay tax — tax obligations arise only when there is taxable income. However, those expecting future income or formal payments should obtain a PAN in advance to make tax procedures easier and transparent.
Remember, a PAN card is essential for tax purposes, not for identity verification. As tax rules and processes can change, it’s advisable to check the latest updates from the Inland Revenue Department (IRD) or consult the nearest IRO in Damak for accurate information.