The Partnership Act, 1932 regulates the partnership firms in India. In a partnership firm, two or more persons come together as partners for carrying on a business or profession. They agree to share the losses and profits of the firm’s business through a partnership deed executed by all the partners of the partnership firm.
The partnership firm needs to file tax returns under the Income Tax Act, 1961, every year irrespective of the amount of its profit or loss. The partners of the partnership firm have to mandatorily obtain a PAN card of the partnership firm for filing income tax returns. The PAN card of the firm acts as proof of the firm’s existence. The partners need to submit the partnership deed or the certificate of registration and PAN card form 49A for filing income tax returns of the firm.
Formalities Before Applying for a PAN Card
The partners of the partnership firm must complete the following formalities before applying for a PAN card of the firm:
- Duly notarise the partnership deed of the firm through a public notary.
- Define and provide authority to one partner to act as manager (authorised partner) and sign on behalf of the firm.
- Ensure that the date of formation and place of business of the partnership firm is mentioned in the partnership deed.
- Ensure that each page of the partnership deed is signed by every partner of the firm and two additional witnesses.
- Stamp the partnership deed using a rubber stamp having the name of the partnership firm and with the word – ‘partner’.
Documents Required for a PAN Card Application
- Partnership deed.
- Digital signature certificate (DSC) of the authorised partner.
- Proof of address of the office, such as the rental agreement, sale deed, NOC from the owner or utility bills not older than three months.
- Proof of identity of all the partners.
- Address proof of all the partners.
- Certificate of registration of the partnership firm.
PAN Card Application Process for a Partnership Firm
The authorised partner can apply for a PAN card for the partnership firm online or offline. The process of PAN application is provided below.
Online Mode of PAN Card Application
- Visit the official website of the NSDL.
- Under the ‘Application Type’ option on the page, select the ‘New PAN – Indian Citizen (Form 49A)’ option from the drop-down list.
- Under the ‘Category’ option, select the ‘Firm’ option from the drop-down list.
- Fill in the applicant (partnership firm) details, contact details, partnership firm income details, business code and documents on the application form.
- Choose the mode of payment from amongst credit or debit card, DD, cheque or net banking and make the payment of Rs.110.
- After the payment process is complete, take the print-out of the acknowledgement slip.
- Affix a recent passport-sized photograph of the authorised partner on the acknowledgement slip and attest it with a black pen.
- Send the acknowledgement slip to the Income Tax Department with the required documents within 15 days of the online application.
After verification of the documents, the PAN card will be dispatched to the registered office of the partnership firm within 15-20 days.
Offline Mode of PAN Card Application
- Visit the nearest PAN Centre (TIN-FC office) and get the PAN application form (Form 49A).
- You can also download the PAN application form from the TIN website.
- Fill the application form using a black ball-point pen.
- The authorised partner should sign the form.
- Submit the application form to the TIN-FC office along with the required documents and pay the registration fees of Rs.110.
After verification of the documents, the PAN card will reach the registered office of the partnership firm within 15-20 days. The partners can track the PAN card status online through the acknowledgement number received after submitting the registration form.
PAN Card Application Form for Partnership Firms
The details that the partner needs to fill on a PAN application form (Form 49-A) for obtaining the PAN card of the partnership firm are as follows:
- Partnership firm name as per the Certificate of Registration issued by the Registrar of firms with an M/S under the applicant name section.
- Date of incorporation of the firm as per the partnership deed.
- Office address of the firm as per the partnership deed.
- Choose ‘Partnership Firm’ under the ‘Status of Applicant’ option.
- Registration number of the firm as provided in the partnership deed.
- Choose ‘Income from business/profession’ under the ‘Source of Income’ option.
- Choose the appropriate business code based on the business of the partnership firm.
- Mention all the supporting documents to be submitted as proof along with the application form/acknowledgement slip (if filed online) to the TIN-FC office/Income Tax Department.
- In the declaration section, mention the name of the authorised partner.
- The authorised partner should sign the application form.
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