Is it Mandatory to Have a PAN for a Partnership Firm?

Last Updated at: January 06, 2021
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PAN for a partnership firm
From 1st July 2020, the Government has launched a new Udyam Registration portal to improve the ease of doing business in India. All companies including partnership firms will get benefits from this. This new portal has integrated useful services (including the application for PAN & TAN) with the company incorporation portal of the MCA.

 

Partnership firms are formed by two or more parties who agree to share the responsibilities and profits or loss incurred by a business. They agree to do so over an oral or written agreement called a partnership deed. Since a verbal agreement has no validity for tax purposes, most partnership firms have a written, legally-valid partnership deed in place before starting the business. The registration, working and regulation of Partnership firms fall under the purview of the Indian Partnership Act, 1932. However, to file taxes, the firm must register with the IT Department and possess a valid PAN card. In this article, we will take a look at how the PAN card is useful for a partnership firm, and what firms can do to apply for one.

  1. PAN Card requirements for Partnership Firm

  2. Documents required for PAN card in case of Partnership Firm

  3. Online Application Process for PAN Card

  4. PAN Card Offline Application Process

  5. Application details for Partnership Firm on PAN Card

  6. PAN Card Application Business Codes

PAN Card requirements for Partnership Firm

To be eligible to file Income Tax returns, partnership firms need to submit their partnership deed and PAN card to the IT department. Firms can apply for a PAN Card through application form 49A. However, before filing a PAN card application, a firm must complete certain formalities. Here’s a look at what a partnership firm needs to do before filing for a PAN card.

  1. Prepare and duly notarize the partnership deed through a public notary.
  2. Define and authorise one partner to act as the Manager and sign on behalf of the partnership firm.
  3. Mention the date of formation and place of business of the partnership firm in the deed.
  4. Ensure that every page of the deed is signed by all the partners and two additional witnesses.
  5. Stamp and authorise the deed using a rubber stamp that bears the name of the Partnership firm along with the word -partner.

Documents required for PAN card in case of Partnership Firm

  1. Partnership Deed
  2. Digital signature certificate 
  3. Proof of Residence of the office 
  • Rental agreement
  • Sale Deed
  • NOC from the owner
  • Utility bills which are not older than three months
  1. Proof of identity of partners
  2. Address proof of all partners
  3. An attested affidavit stating that all the facts provided are accurate and true
  4. Certificate of Registration

get Partnership Firm REGISTRATION

PAN Card Online Application Process

Here’s how you apply for a PAN Card online through the Income Tax Department’s website.

  1. Visit the official website of the NSDL via this link.
  2. From the home page, click on the New PAN for Indian Citizen or Form 49A option.
  3. Make sure you go through the instructions carefully before starting to fill the form.
  4. Select Firm as your category and provide the other details requested.
  5. In case there is an error in the format, a response will be generated indicating the errors.
  6. The applicant must then make the required changes and re-submit the form.
  7. Next, choose a mode of payment from amongst DD, credit or debit card, net banking and cheque and complete the payment of INR 105.
  8. Once the process is complete, take a print-out of the acknowledgement slip.
  9. Fix a recent passport size photograph on the slip and attest it with a black pen.
  10. Next, send this acknowledgement receipt to the Income Tax Department along with the other supporting documents within fifteen days.

PAN Card Offline Application Process

  1. If you do not have access to the internet, you can apply for a PAN Card by visiting the nearest TIN office.
  2. Request for an application form.
  3. Fill the form using a black ball-point pen and make sure you go through all the details provided carefully to avoid any mismatch or error. 
  4. Have the managing partner sign or use the rubber stamp to authorise the application.
  5. Submit the application along with the required supporting documents and pay the appropriate registration fees (typically INR 105).

After verification of the details provided, the PAN card will reach the address provided in around fifteen days. To track your PAN Card online, you may use the acknowledgement number you receive after completing the registration.

PAN Card application details for Partnership Firm

Here’s a look at the details you need to fill on an application form for obtaining a PAN card as a partnership firm.

  1. Firm’s name as per the Certificate of Registration with an M/S tag.
  2. Date of incorporation as per the partnership deed.
  3. Office address as per the partnership deed.
  4. Select Partnership Firm in your status of applicant form.
  5. Choose income from the business as your source of income on the form.
  6. Choose an appropriate business code, as mentioned below.
  7. Mention all the supporting documents you will, be submitting as proof.
  8. In the Declaration, mention the name of the authorised partner.
  9. Also, mention the place and date at the end.

PAN Card Application Business Codes

Business Code Types of Businesses
01 Medical Profession and Business
02 Engineering Business
03 Architecture
04 Chartered Accountancy
05 Interior Decoration
06 Technical Consultancy
07 Company Secretary
08 Legal Practitioner and Solicitors
09 Government Contractor
10 Insurance Agency
11 Films, TV and Entertainment
12 Information Technology
13 Builders and Developers
14 Brokers and members of the Stock Exchange
15 Performing Arts and Yatra
16 Ship, Aircraft, Hovercraft, and Helicopter Operators
17 Taxi, Lorry, Bus or Commercial Vehicle plying
18 Horse ownership or jockeying
19 Cinema Halls and Theatres
20 Others

 

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Is it Mandatory to Have a PAN for a Partnership Firm?

942
From 1st July 2020, the Government has launched a new Udyam Registration portal to improve the ease of doing business in India. All companies including partnership firms will get benefits from this. This new portal has integrated useful services (including the application for PAN & TAN) with the company incorporation portal of the MCA.

 

Partnership firms are formed by two or more parties who agree to share the responsibilities and profits or loss incurred by a business. They agree to do so over an oral or written agreement called a partnership deed. Since a verbal agreement has no validity for tax purposes, most partnership firms have a written, legally-valid partnership deed in place before starting the business. The registration, working and regulation of Partnership firms fall under the purview of the Indian Partnership Act, 1932. However, to file taxes, the firm must register with the IT Department and possess a valid PAN card. In this article, we will take a look at how the PAN card is useful for a partnership firm, and what firms can do to apply for one.

  1. PAN Card requirements for Partnership Firm

  2. Documents required for PAN card in case of Partnership Firm

  3. Online Application Process for PAN Card

  4. PAN Card Offline Application Process

  5. Application details for Partnership Firm on PAN Card

  6. PAN Card Application Business Codes

PAN Card requirements for Partnership Firm

To be eligible to file Income Tax returns, partnership firms need to submit their partnership deed and PAN card to the IT department. Firms can apply for a PAN Card through application form 49A. However, before filing a PAN card application, a firm must complete certain formalities. Here’s a look at what a partnership firm needs to do before filing for a PAN card.

  1. Prepare and duly notarize the partnership deed through a public notary.
  2. Define and authorise one partner to act as the Manager and sign on behalf of the partnership firm.
  3. Mention the date of formation and place of business of the partnership firm in the deed.
  4. Ensure that every page of the deed is signed by all the partners and two additional witnesses.
  5. Stamp and authorise the deed using a rubber stamp that bears the name of the Partnership firm along with the word -partner.

Documents required for PAN card in case of Partnership Firm

  1. Partnership Deed
  2. Digital signature certificate 
  3. Proof of Residence of the office 
  • Rental agreement
  • Sale Deed
  • NOC from the owner
  • Utility bills which are not older than three months
  1. Proof of identity of partners
  2. Address proof of all partners
  3. An attested affidavit stating that all the facts provided are accurate and true
  4. Certificate of Registration

get Partnership Firm REGISTRATION

PAN Card Online Application Process

Here’s how you apply for a PAN Card online through the Income Tax Department’s website.

  1. Visit the official website of the NSDL via this link.
  2. From the home page, click on the New PAN for Indian Citizen or Form 49A option.
  3. Make sure you go through the instructions carefully before starting to fill the form.
  4. Select Firm as your category and provide the other details requested.
  5. In case there is an error in the format, a response will be generated indicating the errors.
  6. The applicant must then make the required changes and re-submit the form.
  7. Next, choose a mode of payment from amongst DD, credit or debit card, net banking and cheque and complete the payment of INR 105.
  8. Once the process is complete, take a print-out of the acknowledgement slip.
  9. Fix a recent passport size photograph on the slip and attest it with a black pen.
  10. Next, send this acknowledgement receipt to the Income Tax Department along with the other supporting documents within fifteen days.

PAN Card Offline Application Process

  1. If you do not have access to the internet, you can apply for a PAN Card by visiting the nearest TIN office.
  2. Request for an application form.
  3. Fill the form using a black ball-point pen and make sure you go through all the details provided carefully to avoid any mismatch or error. 
  4. Have the managing partner sign or use the rubber stamp to authorise the application.
  5. Submit the application along with the required supporting documents and pay the appropriate registration fees (typically INR 105).

After verification of the details provided, the PAN card will reach the address provided in around fifteen days. To track your PAN Card online, you may use the acknowledgement number you receive after completing the registration.

PAN Card application details for Partnership Firm

Here’s a look at the details you need to fill on an application form for obtaining a PAN card as a partnership firm.

  1. Firm’s name as per the Certificate of Registration with an M/S tag.
  2. Date of incorporation as per the partnership deed.
  3. Office address as per the partnership deed.
  4. Select Partnership Firm in your status of applicant form.
  5. Choose income from the business as your source of income on the form.
  6. Choose an appropriate business code, as mentioned below.
  7. Mention all the supporting documents you will, be submitting as proof.
  8. In the Declaration, mention the name of the authorised partner.
  9. Also, mention the place and date at the end.

PAN Card Application Business Codes

Business Code Types of Businesses
01 Medical Profession and Business
02 Engineering Business
03 Architecture
04 Chartered Accountancy
05 Interior Decoration
06 Technical Consultancy
07 Company Secretary
08 Legal Practitioner and Solicitors
09 Government Contractor
10 Insurance Agency
11 Films, TV and Entertainment
12 Information Technology
13 Builders and Developers
14 Brokers and members of the Stock Exchange
15 Performing Arts and Yatra
16 Ship, Aircraft, Hovercraft, and Helicopter Operators
17 Taxi, Lorry, Bus or Commercial Vehicle plying
18 Horse ownership or jockeying
19 Cinema Halls and Theatres
20 Others

 

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