Partnership firms are formed by two or more persons or parties who agree to share the responsibilities and profits or losses incurred through a business. They agree to do so in an oral or written agreement called a partnership deed. Since a verbal agreement has no validity for tax purposes but most partnership firms have a written agreement, a legally-valid partnership deed. The registration, working, rules, and regulation of Partnership firms fall under the Indian Partnership Act of 1932. However, the partnership firm must register with the Income Tax Department for filing taxes and possess a valid PAN card. In this article, we will look at how the PAN card is useful for a partnership firm.
A Permanent Account Number or PAN number means it is an identification number that is assigned to all taxpayers in India. A Permanent Account Number is an electronic system through which all the tax-related information for a person or company is recorded against a single PAN number. PAN Card is the vital key for the storage of information and is shared across the country. Hence no two entities can have tax-paying through the same PAN.
Is PAN Card compulsory for Partnership Firms?
Partnership firms are required to submit their partnership deed and PAN card to the IT department for filing the Income Tax Return. Firms can apply for a Permanent Account Number Card by application form no.49A. However, a firm must complete certain formalities before filing a PAN Card application. What a partnership firm requires to do before filing for a PAN card which given below:
- Prepare and duly notarize the partnership deed by a public notary.
- Define and authorize at least one partner to perform as the manager and sign on behalf of the partnership firm.
- The Partnership Deed mentioned the date of formation and place of business of the partnership firm.
- Ensure that every page of the Partnership deed is signed by all the partners and two additional witnesses also.
- Stamp and authorize the partnership deed using a rubber stamp that holds up the name of the Partnership firm along with the word -partner.
Documents required for Partnership Pan Card
- Partnership Deed
- Digital signature certificate
- Residence Proof of the office
- Rental agreement
- Sale Deed
- NOC from the owner
- Service charges that are not more seasoned than 90 days
- Proof of identity of partner
- Address proof of all partners
- An authenticated testimony expressing that the real factors given are precise and valid
- Certificate of Registration
PAN Card Online Application Process
How you can apply for a PAN Card online through the website of the Income Tax Department:
- Visit the official portal of the NSDL Link
- Click on the New PAN for Indian Citizen or Form 49A option from the home page.
- Before starting to fill out the form, make sure you go through all the instructions carefully.
- Select Firm as your category and fill in the other details requested on the website or application form.
- In case there is an error in the format then a response will be generated indicating the errors.
- The applicant should make the necessary changes and re-submit the form.
- After that, you choose a mode of payment from DD, credit card or debit card, net banking, and through cheque and if completed the payment of Rs.105 is then the process is complete
- Now you take a print-out of the acknowledgment slip and fix a recent passport-size photo on the slip and attested it with a black pen.
- After that, you send this acknowledgment receipt to the Income Tax Department along with the other supporting documents within 15 days.
PAN Card Offline Application Process
- If you do not have access to the internet then you can apply for a PAN Card by visiting the nearest TIN office.
- Request for an application form then you can fill the form using a black pen and make sure you go through all the details that are given carefully to avoid any mismatch or mistake or error.
- The managing partner signs or use the rubber stamp to authorize the application form.
- Apply along with the essential documents and pay the appropriate registration fees.
- After verification of the details which is provided or given, then the PAN card will reach the address provided in around 15 days.
- You may use the acknowledgment number you receive after completing the registration for tracking your PAN Card.
PAN Card Application Details for Partnership Firm
The details you are required to fill on an application form for obtaining a PAN card as a partnership firm are as follows:
- Firm’s name according to the Certificate of Registration with an M/S tag
- Date of fuse as per the organization deed
- Office address according to the partnership deed
- In your status of application form select the Partnership Firm
- Choose an appropriate business code which is given below
- Bring up all the supporting documents you will be submitting as proof.
- Also, provided the place and date at the end.
It concluded that A Permanent Account Number is an electronic system through which all the tax-related information for a person or company is recorded against a single PAN number. PAN Card is the vital key for the storage of information and is shared across the country. Partnership firms are required to submit their partnership deed and PAN card to the IT department for filing the Income Tax Return. Firms can apply for a Permanent Account Number Card by application form no.49A.
eStartIndia will help you in Partnership Firm Registration from the comfort of your home.