To open and maintain a Trading and Demat account, a Permanent Account Number (PAN) is required. Typically, a PAN is issued under the Resident category when applied as a Resident of India. However, if one's residential status changes from Resident Indian to Non-Resident Indian (NRI), it is crucial to update the PAN status accordingly. This update is particularly important for NRIs who wish to open a trading and demat account, as these accounts cannot be opened if the PAN status is not updated to reflect the NRI category. 

Thus, it is important to keep your profile updated in PAN in Income Tax Website to comply with Regulations and to enjoy benefits available for NRIs, if any. 

How to update Status

1) Visit E portal website

2) Log in with your User Id which is your PAN number

3) Key in your password. If you have forgotten password, reset it online. Watch Video to know how to retrieve password

4) If you have not created a login account, create login under NRI status. Watch Video to know how to create an account.

5) Select My Profile as seen in image below

6)  Click on the Edit button and Update your Residential Status as 'Non Resident'

8) Scroll down the page and click on Jurisdiction details to find your AO email id

9) Write an email to the Assessing Office, requesting to update your PAN to NRI and attach supporting documents such as OCI (Overseas Citizen of India Copy) / PIO (Person of Indian Origin) Copy or Foreign Passport Copy and PAN

It will take few days for your PAN status to be updated. If not, raise grievance by following steps below:

1) Login to IT E portal website  website 

2) Select Grievance 

3) Select AO under relevant department

4) Select Category as Pan related Application 

5) Select Sub Category as 'Change of Citizenship Flag'

6)For attachments, select 'Other documents' and OCI / PIO / Foreign Passport Copy.