Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued by the Income Tax Department. It tracks all the day to day transactions and tax payments of the holder. Even an NGO is not exempted from the responsibility of having a valid PAN card.
One of the most important documents an NGO should have in India is the PAN card. It is crucial as it is necessary for all sorts of commercial transactions. So much so that NGO’s cannot even claim essential benefits, file taxes, or accept donations without it.
Like any individual, every organisation, even non-profit ones are required to register for a PAN card. So, if you’re running an NGO, you need to have a Permanent Account Number. It’s best you get one sooner rather than later. After all, you can’t even open a bank account nowadays without one.
In India, PAN cards are one of the most important documents when it comes to financial transactions. PANs are ten-character alphanumeric identifiers issued by the Income Tax Department on laminated cards. A number is issued to any “person” who applies for it or to whom the department allots it without an application. In order to pay taxes and claim benefits from them, individuals and companies alike need PAN Cards. How to get a PAN card for a registered NGO will be discussed here.
Why does an NGO need a PAN Card?
- It is important to have a PAN in order to open a bank account and make transactions.
- Moreover, a PAN card is mandatory for filing taxes. Moreover, it is also crucial for all monetary and related correspondences with the Income Tax Department and other government departments.
- The government of India has made PAN cards mandatory for receiving funds and donations.
- Additionally, NGOs should be registered under the DARPAN website of Niti Ayog (Planning Commission) to be eligible for such funds. Further, this registration process requires NGO’s to furnish their PAN card as well.
- Moreover, NGOs also require a PAN card for preparing documents and challans for payment of tax, interest on tax or any other transactions applicable under the Income-tax Act.
- For getting Section 12A registration and obtaining certification under section 80g of the Income Tax Act.
Penalty for not having the PAN
If an NGO does not have a PAN or its authorised members/ office bearers are not able to furnish the PAN. Likewise, this is mandatory to provide under section 139A of the Income Tax Act, 1961, then the NGO is subjected to penalty under section 272B of the Income Tax Act,1961.
Get PAN Card for a Registered NGO Online
A PAN card can be obtained either through offline or online modes. In the face of the current pandemic, it is most preferable to go with the online application. Moreover, the online mode is more time-efficient and hassle-free.
PAN applications can be made online on the official website of NSDL. The online application process of obtaining a PAN card is described below.
Step 1: Log on to the website of NSDL e-Gov or Protean website: https://www.protean-tinpan.com/
Step 2: Scroll Down to quick links and select Online PAN Services a dropdown will appear click on apply for PAN Online.
Step 3: In Application for allotment of New PAN (Form 49A) – applicable for Citizens of India section read the instructions and Click on Apply.
Step 4: Submit the PAN card application through Form 49A available on the portal. Fields marked by an asterisk (*) are mandatory and should be filled without fail.
Step 5: Make an online payment of the prescribed application fee of ₹93 (excluding GST) in case of an Indian communication address and ₹864 (excluding GST) in case of a foreign communication address.
Step 6: Pursuant to the successful submission of the online application, an acknowledgement receipt is generated. The acknowledgement receipt must be saved and printed.
Step 7: One must then forward the receipt to NSDL e-Gov along with supporting documents for further processing.
The status of the PAN application can then be tracked online. Typically, it takes three weeks for the PAN to arrive at the address provided.
Having a PAN card for a registered NGO has many benefits.
Registered NGO’s benefit from having a PAN card include the following:
- NGO’s are funded by the NITI Aayog from time to time, and in order to receive these funds from the government, they need a PAN card. This would ensure the authority and legitimacy of the bank transactions, and the government would have the appropriate details about the NGO’s finances.
- In addition to business transactions, NGO’s buy and sell stocks, purchase lands or other property. To keep track of all these transactions, a registered PAN card is necessary.
- The NGO, as we can see, is involved in many transactions, which makes it an assessee under the Income-tax Act, and therefore is required to pay taxes. It is essential to have a PAN card in order to successfully pay taxes.
Documents Required to Obtain a PAN Card
The list of documents that are acceptable as proof of identity and address for Indian origin non-profit organisations is as below:
Type of Applicant
Document to be submitted
|Association of Persons (Trust)||Copy of trust deed or copy of the certificate of registration number issued by Charity Commissioner.|
|Association of Person, Body of Individuals, Local Authority, or Artificial Juridical Person||Copy of agreement or copy of the certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority or any other document originating from any central or state government department establishing identity and address of such person.|
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