Partnership firms are set up by two or more parties who pursue the business activities based on mutually agreed terms mentioned in the partnership deed. The best thing about this business structure is that no single member will be liable to confront the entire loss incurred by a business. Since a verbal agreement lacks validity for tax purposes, most firms have a written, legally-authorized deed in place before commencing the business.
These firms were regulated by the provisions of the Indian Partnership Act, 1932. But, to address the tax liabilities, the firm must have a Permanent Account Number (PAN) card at its disposal. In case of non-availability of PAN Card, the partner can approach the Income Tax department to get one in the name of their partnership firm. In this write-up, we will unfold and explain the procedure of obtaining a PAN card for partnership firm in detail.
PAN Card for Partnership Firm – Basic Prerequisites
To be eligible to file IT return, such firms were required to furnish their partnership deed and PAN card to the Income Tax Department. Firms can use application form 49A to apply for a PAN card. But, before that, a firm must address some basic conditions. Here’s a look at the fundamental prerequisites that one must fulfill before Apply for a PAN card.
- Draft and notarize the partnership deed via a public notary.
- Define one partner as an authorized signatory on behalf of the partnership firm.
- Mention the formation date as well as the business place of the firm mentioned in the deed.
- Ensure that the deed is approved by all the partners & two additional witnesses via their respective signatures.
- Stamp and authorize the partnership deed by a rubber stamp that entails the firm’s name along with the word- partner.
Read our article:An Analysis on What is a Partnership Firm and How to Register It!
Mandatory Documents Required For Obtaining PAN card for Partnership Firm
- Partnership DeedÂ
- Digital signature certificateÂ
- Proof of office Residence (NOC from owner, sale deed, Rental Agreement, utility bill)
- Proof of identity of partners
- Address proof of all partners
- An attested affidavit stating that all the facts provided are accurate & true
- Certificate of Registration
Online Application Process for Availing PAN card for Partnership Firm
Here is the online procedure for availing PAN card for partnership firm via the IT Department portal;-
- Head over to the official portal of NSDL by entering the given URL in Brower’s address bar. https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
- On the home window, tap on the Form 49A or new PAN for Indian Citizen Option.
- Read the on-screen instructions carefully before getting started with filing process.
- Select the firm and provide the requested detail.
- In case there is an error, a response will be generated reflecting the errors.
- Make the necessary changes and re-submit the form.
- Next, opt for the correct payment mode and complete the payment of INR 105.
- Once you are done with the payment, take the printout of the acknowledgment slip.
- Affix the latest passport size photograph on the acknowledgment slip and attest it with a black pen.
- Next, send the aforesaid slip to the IT department and the necessary documents within 15 days.
Offline Application Process for Availing PAN card for Partnership Firm
- You can also apply for a Permanent Account Number[1] by visiting the nearest TIN office.
- Ask for an application form regarding the PAN Card,
- Fill the form properly using the black ball-point pen and ensure you go read all the information provided carefully to avert any error.
- Get the signature of the managing partner and used the rubber stamp to authorize the said form.
- Submit the form along with the necessary documentation and pay the required fees (typically INR 105).
After successful verification of the detail provided, the authority will send the PAN card the applicant’s address within 15 days. To check the PAN application status, feel free to use the acknowledgment number you obtain after completing the registration.
Details to be filled In Application
Following are the mandatory details to be filed by the applicant for obtaining a PAN card for Partnership Firm.
- Company’s name as mentioned on the Registration certification with an M/S tag.
- Incorporation date as mentioned in the partnership deed.
- Office address as mentioned in the partnership deed.
- Opt for the Partnership Firm in your applicant form’s status.
- Select business income as your source of income on the form.
- Select a correct business code as given in the table* below.
- Mention all the required documents.
- Mention the name of the active partner as mentioned in the Partnership Deed.
- Also, add the location and date.
Business Codes
| Business Code | Types of Businesses |
| 01 | Medical Profession & Business |
| 02 | Engineering Business |
| 03 | Architecture |
| 04 | Chartered Accountancy |
| 05 | Interior Decoration |
| 06 | Technical Consultancy |
| 07 | Company Secretary |
| 08 | Legal Practitioner & Solicitors |
| 09 | Government Contractor |
| 10 | Insurance Agency |
| 11 | Films, TV & Entertainment |
| 12 | Information Technology |
| 13 | Builders & Developers |
| 14 | Brokers & members of the Stock Exchange |
| 15 | Performing Arts & Yatra |
| 16 | Ship, Aircraft, Hovercraft, & Helicopter Operators |
| 17 | Taxi, Lorry, Bus or Commercial Vehicle plying |
| 18 | Horse ownership or jockeying |
| 19 | Cinema Halls & Theatres |
| 20 | Others |
Conclusion
PAN is something that companies, firms, trust, etc cannot afford to skip as it is a mandatory requirement for addressing the tax liabilities. The income tax Department uses the PAN card to track all the fiscal transactions. Without PAN, the partners will find it impossible to execute tax-related activities in the company. Communicate with CorpBiz’s associates to get pinpoint guidance on this topic.
Read our article:Partnership Firm Registration: Definition, Regulations, and Registration Procedure
