Understand the process of obtaining a PAN card for a partnership firm. Learn about the significance of PAN for partnership firms and the steps for PAN application.
The Indian Partnership Act of 1932 governs and regulates the registration and operation of partnership firms in India. A partnership, according to Section 4 of this Act, is simply a relationship between two people who agree to split and share the profits made through business dealings.
In most circumstances, such people sign a Partnership Agreement that spells out their roles, responsibilities, tasks, and profits. All such business partners must have a valid PAN card under Indian law. As a result, partners in partnership firms must produce PAN cards. Furthermore, in order to file IT returns and pay taxes on time, the company will need a PAN card.
PAN for Partnership Firm – Overview
A Partnership Firm, governed by a partnership deed, plays a significant role in the economic landscape of India. To establish its legal existence and facilitate various financial transactions, obtaining a PAN (Permanent Account Number) is essential. The PAN card of the firm acts as proof of its existence, providing a unique identification for taxation purposes.
Benefits of PAN Card for Partnership Firm
The PAN card for a partnership firm offers a range of benefits, contributing to the smooth functioning and growth of the business:
International Transactions: Facilitates seamless international transactions by providing a unique identification for the firm.
Business Expansion: A PAN card is crucial for expanding the business as it establishes the firm’s credibility in the eyes of investors and stakeholders.
Government Benefits: Enables the partnership firm to avail various government benefits and schemes.
Legal Proof: Serves as legal proof of the firm’s existence, making it easier to participate in legal agreements and transactions.
Opening Bank Accounts: Essential for opening a business bank account, streamlining financial transactions.
Tax Compliance: Ensures compliance with tax regulations, making it easier for the firm to fulfill its tax obligations.
Digital Platforms: Facilitates participation in digital platforms and e-commerce, contributing to the firm’s digital presence.
Documents Required for PAN Card for Partnership Firm
To apply for a PAN card for a partnership firm registration, certain documents are required:
Registration Certificate: A copy of the registration certificate issued by the appropriate authority.
Proof of Address of Partners: Documents verifying the residential address of the partners.
Identity Proof: Valid identification documents of the partners.
Address Proof: Documents providing proof of the firm’s registered address.
Eligibility Criteria for PAN Card for Partnership Firm
To be eligible for a PAN card, a partnership firm must meet certain criteria:
Indian Citizenship: The partnership firm should be registered in India and have Indian citizenship.
Partnership Deed: A legally binding partnership deed is a prerequisite for PAN card application.
Bank Account: The firm must have a bank account in its name.
Business Proof: Submission of relevant documents demonstrating the existence and nature of the business.
Authorized Signatory: The application must specify the authorized signatory for the firm.
How to Fill Out the PAN Card for Partnership Firm Form?
When filling out the PAN card application form for a partnership firm, certain key details must be provided:
Certificate of Registration: Attach a copy of the certificate of registration issued by the appropriate authority.
Partnership Deed: Submit a copy of the legally binding partnership deed.
Name: The name mentioned in the form should be the exact name printed on the PAN card.
Date of Incorporation: Specify the date of incorporation mentioned in the partnership deed.
Office Address: Provide the registered office address of the partnership firm.
Status of Applicant: Clearly state the status of the applicant as a partnership firm.
Process for Applying for PAN Card for Partnership Firm Online
The online application process for a PAN card for a partnership firm involves the following steps:
Category: Select the appropriate category for PAN application, in this case, partnership firms.
Form 49A: Fill out Form 49A, the application form for PAN.
New PAN – Indian Citizen: Choose the application type as “New PAN – Indian Citizen.”
Application Site: Visit the NSDL (National Securities Depository Limited) website for online PAN application.
Menu and Section: Navigate through the menu and select the relevant section for partnership firms.
Application Type: Choose the application type as “Firm.”
Submit Application: Complete the application form and submit it through the online portal.
Challenges of Applying for PAN Card for Partnership Firm
While the process of applying for a PAN card for a partnership firm is crucial, certain challenges may arise:
Complexity of Filing Forms: The application process involves intricate details, and any error in filing forms may lead to complications.
Inaccurate Information Filling: Providing incorrect information may result in delays or rejection of the application.
Unavailability of Documents: Difficulty in obtaining necessary documents can hinder the application process.
Long Processing Time: The processing time for PAN card applications can be lengthy, affecting the firm’s operations.
Risks of Not Having PAN Card: Non-possession of a PAN card can pose risks, including legal implications and financial constraints.
Difficulty in Opening Bank Accounts: Without a PAN card, partnership firms may face challenges in opening bank accounts.
Being Overcharged by Tax Authority: Lack of a PAN card may lead to potential overcharging by tax authorities.
Difficulty in Selling Assets: Selling assets without a PAN card can be complicated and result in legal hurdles.
Non-Compliance with Government Regulations: Non-compliance with PAN card regulations may lead to penalties and legal consequences.
Potential Loss of Tax Benefits: Without a PAN card, the partnership firm may miss out on tax benefits and exemptions.
How to Track the Status of PAN Card for Partnership Firm?
After applying for a PAN card for a partnership firm, tracking the status is crucial. Here are various methods to track the status:
How to Track PAN Card Status Online
Visit the TIN-NSDL portal.
Select the “Application Type” as PAN – New / Change Request.
Enter the “Acknowledgement Number” provided during the application submission.
Click on the “Submit” button to view the status.
How to Track PAN Card Status Through SMS
Send an SMS ‘NSDLPAN’ to 57575, followed by the 15-digit acknowledgement number that was sent to you once the application was submitted successfully
How to Track PAN Card Status Through Email
Send an email to the designated email address with the subject: “PAN Status <Acknowledgement Number>.”
| NDSL Email for Queries Related to PAN:- info[at]nsdl[dot]co[dot]in |
How to Track PAN Card Status Through Phone
Call the helpline number provided by the NSDL and follow the instructions to inquire about the PAN card status.
| NDSL Helpline for Queries Related to PAN:- (020) 272 18080 |
How to Track PAN Card Status Through Post
In case of postal communication, wait for the acknowledgment letter from NSDL, which includes the postal tracking ID and status of the PAN card application.
How to Rectify Errors in PAN Card for Partnership Firm
In the event of errors in the PAN card for a partnership firm, follow these steps to rectify them:
Requesting for Rectification of Details: Submit a formal request for rectification to the tax department.
Providing Supporting Documents to the Tax Department: Attach relevant supporting documents validating the need for rectification.
Resolve Incorrect Name in PAN Card: Provide evidence of the correct name through legal documents.
Resolve Incorrect Address in PAN Card: Submit updated address proof to rectify the address.
Resolve Incorrect Gender in PAN Card: If the gender is incorrect, provide appropriate documentation to rectify the error.
FAQs on PAN Card for Partnership Firm
How Long Does it Take to Process a PAN Card Application for Partnership Firm?
The processing time for a PAN card application for a partnership firm varies but typically takes a few weeks.
Are There Any Fees Involved in Obtaining a PAN Card for Partnership Firm?
Yes, there are fees associated with the PAN card application for partnership firms. The exact amount can be found on the official NSDL website.
Do I Need to Provide Any Documents when Applying for a PAN Card for Partnership Firm?
Yes, certain documents such as the partnership deed, registration certificate, and proof of identity and address of partners are required for the application.
Is PAN card mandatory for a partnership firm?
Yes, obtaining a PAN card is mandatory for a partnership firm for various legal and financial transactions.
How can I check my partnership firm PAN?
You can check the PAN of your partnership firm on the PAN card itself or verify it through the official NSDL portal.
Is PAN card mandatory for LLP?
Yes, a Limited Liability Partnership (LLP) is also required to obtain a PAN card for conducting various financial transactions.
What is the 4th letter of partnership firm PAN card?
The 4th letter in a partnership firm's PAN card is a unique alphanumeric character, and it can be determined by checking the PAN card.
The Takeaway
In conclusion, obtaining a PAN card for a partnership firm is a crucial step for its legal recognition, financial transactions, and tax compliance. Despite the challenges involved, the benefits far outweigh the difficulties, ensuring the smooth functioning and growth of the partnership firm in the long run.
For assistance in obtaining a PAN card for your partnership firm, request a free callback from our experts today!
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