PAN cards for a partnership firm

A partnership firm is a business entity where two or more people come together to pursue a business or profession. The Partnership Act, of 1932, regulates the partnership firms in India. The partners of the firm agree to share the losses and profits of the firm's business through a deed executed by all the partners of the partnership firm.

The partnership firm needs to file tax returns under the Income Tax Act, of 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 partner’ need to submit the ’artnership 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:

1. Duly notarise the partnership deed of the firm through a public notary.
2. Define and provide authority to one partner to act as manager (authorised partner) and sign on behalf of the firm.
3. Ensure that the date of formation and place of business of the partnership firm is mentioned in the partnership deed.
4. Ensure that each page of the partnership deed is signed by every partner of the firm and two additional witnesses.
5. 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

The following documents are required for a PAN card application for a partnership firm:

1. Partnership deed.
2. Digital signature certificate (DSC) of the authorised partner.
3. 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.
4. Proof of identity of all the partners.
5. Address proof of all the partners.
6. 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:

1. Visit the official website of the NSDL.
2. Under the 'Application Type' option on the page, select the 'New PAN - Indian Citizen (Form 49A)' option from the drop-down list.
3. Under the 'Category' option, select the 'Firm' option from the drop-down list.
4. Fill in the applicant (partnership firm) details, contact details, partnership firm income details, business code, and documents on the application form.
5. Choose from payment modes such as credit or debit card, DD, cheque, or net banking. Make the payment of Rs. 110.
6. After the payment process is completed, take a printout of the acknowledgement slip.
7. Affix a recent passport-sized photograph of the authorised partner on the acknowledgement slip and attest it with a black pen.
8. Send the acknowledgement slip to the Income Tax Department with the required documents within 15 days of the online application.

Offline mode of PAN card application:

1. Download the PAN card application form from the official website of the NSDL.
2. Fill in the form with the required details.
3. Attach the required documents with the form.
4. Submit the form and documents to the nearest NSDL TIN facilitation centre or PAN centre. Pay the processing fee of Rs. 110 at the centre.
5. After the payment process is complete, take a printout of the acknowledgement slip.
6. Affix a recent passport-sized photograph of the authorised partner on the acknowledgement slip and attest it with a black pen.
7. Send the acknowledgement slip to the Income Tax Department with the required documents within 15 days of the offline application.

In conclusion, obtaining a PAN card for a partnership firm is mandatory for filing Income Tax Returns. The partners of the partnership firm need to complete the formalities before applying for a PAN card of the firm. The authorised partner can apply for a PAN card for the partnership firm online or offline. The PAN card of the firm acts as proof of the firm's existence. Therefore, ensure that all the necessary documents are submitted along with the application form to avoid any delays in the process.