The Partnership Act of 1932 is liable for regulating
partnership firms in India, where two or more individuals come together to
carry out a business or profession while agreeing to share the profits and
losses of the firm through a partnership deed. Regardless of the profit or loss
amount, the partnership firm is required to file tax returns under the Income
Tax Act of 1961 every year. Obtaining a PAN card for the partnership firm is
mandatory for the partners to file income tax returns, and it acts as evidence
of the firm's existence. When filing the income tax returns for the partnership
firm, the partners must submit the partnership deed or registration certificate
and form 49A for the PAN card.
Essential Elements for Establishing a Partnership Firm
To confirm its status as a partnership firm while applying
for a partnership PAN card, a company needs to review the following aspects:
- The number of individuals involved in the partnership
- The partnership agreement or contract
- The business agreement to continue operating the business
- Mutual agency
- Profit-sharing arrangement
Procedures to Follow Prior to PAN Card Application
To apply for a PAN card for a partnership firm process
1) Get the partnership deed of the firm duly notarized by a
public notary.
2) Specify and authorize one partner to act as the manager
(authorized partner) and sign on behalf of the firm.
3) Ensure that the partnership deed contains the date of
formation and the place of business of the partnership firm.
4) Ensure that each page of the partnership deed is signed
by all partners of the firm and two additional witnesses.
5) Stamp the partnership deed (agreement) with a rubber
stamp which includes the name of the partnership firm as well as the word
"partner."
What are the necessary documents needed for applying for
a PAN card?
Following are the documents needed for applying for a PAN
card:
- A properly notarized Partnership Deed in India is
required.
- The authorized partner's Digital Signature Certificate
(DSC) must be provided.
- The office's address proof, such as a rental agreement,
sale deed, NOC from the owner, or utility bills not older than three months,
must be submitted.
- The identity proof of all partners must be provided.
- The address proof of all partners must be provided.
- The partnership firm's registration certificate is
mandatory.
Partnership Firm's PAN Card Application Process
The authorized partner can apply for the partnership firm's
PAN card online or in person. The procedure for obtaining a PAN is outlined
below:
1) Online PAN Card Application Mode
- Go to the NSDL's official website.
- Select the 'New PAN - Indian Citizen (Form 49A)' option
from the drop-down list under the 'Application Type' option on the page.
- Select the 'Firm' option from the drop-down list under the
'Category' option.
- Fill out the application form with the applicant's
(partnership firm's) information, contact information, partnership firm income
information, business code, and documents.
- Choose a payment method from credit or debit card, DD,
check, or net banking and make a Rs.110 payment.
- Once the payment has been completed, grab a printout of
the acknowledgement slip.
- Attach a recent passport-sized image of the authorized
partner to the acknowledgement paper and sign it in black ink.
- Within 15 days following the online application, send the
acceptance slip to the Income Tax Department together with the relevant papers.
The PAN card will be provided to the registered office of
the partnership firm within 15-20 days after the paperwork has been validated.
2) PAN Card Application in Offline Mode
- Go to your local PAN Centre (TIN-FC office) and obtain the
PAN application form (Form 49A).
- The PAN application form may also be downloaded on the TIN
website.
- To complete the application form, use a black ballpoint
pen.
- The authorized partner must sign the paperwork.
- Along with the necessary documents and a registration fee
of Rs. 110, the application should be submitted to the TIN-FC office.
After the document verification procedure is completed, the
PAN card will be given to the partnership firm's registered office within 15-20
days. The partners can keep track of the status of their PAN card by using the
acknowledgement number provided after submitting the registration form to check
online.
Guidance on how to fill out Form 49A for a Partnership
Firm
The PAN application
form requires a partner to provide various details:
1) The name of the
partnership firm should be the same as the one mentioned in the Certificate of
Registration.
2) The incorporation date of the firm as per the partnership
deed.
3) The firm's office address mentioned in the deed must also
be provided.
4) The applicant should select 'Partnership Firm' in the
'Status of Applicant' section
5) Providing the partnership firm's registration number as
mentioned in the deed.
6) The source of income should be selected as 'Income from business/profession'.
7) The appropriate business code should be selected based on
the firm's business.
8) The necessary documents required to be submitted along
with Form 49A/acknowledgement slip (in the case of online application) to the
IT Department/TIN-FC office should be specified.
9) The authorized partner's name must be provided in the
declaration section.
10) Their signature should be affixed across the photo that
is attached to the left top corner of the form.
11) The form should be filled in English, using block
letters and preferably in black ink.
12) The applicant must attach two recent color photographs
in the space provided on the top corners of the form, ensuring that the photos
are not stapled or clipped to the form, as they will be displayed on the PAN
card.
Conclusion
PAN is a legal requirement for dealing with tax
responsibilities. As a result, enterprises, corporations, trusts, and so on
cannot afford to overlook this critical registration. PAN cards are used by the
income tax authorities to maintain track of all financial transactions. Without
a PAN, the partners of a partnership firm cannot do any tax-related business
activity. As a result, you must apply for a pan card online.
