A partnership firm in India is governed by the Partnership Act, 1932. In order to run a business or profession, two or more people form a partnership. Partnership deeds agree that all partners will share losses and profits of a partnership firm.
Partnership firms must file tax returns every year under the Income Tax Act, 1961, regardless of how much profit or loss they make. For filing income tax returns, partnership firm partners must obtain a PAN card. The PAN card proves the existence of the firm. For filing income tax returns, partners must submit the partnership deed or certificate of registration, along with PAN card form 49A.
PAN Card Formalities
Before applying for a PAN card for the firm, the partners must complete the following formalities:
- Obtain a public notary to notarize the partnership deed.
- Define and authorize one partner to act as manager (authorised partner) and sign on behalf of the firm.
- The partnership deed must specify the date of formation and the place of business of the partnership firm.
- All partners and two additional witnesses should sign each page of the partnership deed.
- With the help of a rubber stamp, stamp the partnership deed with the name of the partnership firm as well as the word ‘partner’ on it.
An application for a PAN card requires the following documents
- Document establishing a partnership.
- An authorised partner’s digital signature certificate (DSC).
- Documents proving the address of the office, such as a rental agreement, sale deed, NOC from the owner, or utility bills not older than three months.
- All partners must provide proof of their identity.
- Proof of each partner’s address.
- The partnership firm’s registration certificate.
How to apply for a PAN card as a partnership
PAN cards can be obtained online or offline by the authorised partner of the partnership firm. Following is a description of the PAN application process.
PAN Card Application Online
- The official website of the NSDL can be found here.
- Choose the ‘New PAN – Indian Citizen (Form 49A)’ option from the drop-down list under the ‘Application Type’ option.
- Select the ‘Firm’ option under the ‘Category’ option.
- Fill out the application form with the details of the applicant (partnership firm), contact information, partnership firm income details, business code and documents.
- Choose your payment method from credit or debit card, check, DD, or net banking and make the payment of Rs.110.
- Take a printout of the acknowledgement slip after the payment process is complete.
- Attach a recent passport-sized photograph of the authorised partner to the acknowledgement slip and sign it.
- Within 15 days of completing the online application, send the acknowledgement slip along with the required documents.
Within 15-20 days of the documents being verified, the PAN card will be sent to the registered office of the partnership firm.
Offline Mode of PAN Card Application
- Get a PAN application form (Form 49A) at your nearest PAN Centre (TIN-FC office).
- The TIN website also has a PAN application form you can download.
- Use a black ballpoint pen to fill out the application.
- Sign the form if you are an authorised partner.
- Register with the TIN-FC office by submitting the application form along with the required documents and paying the partnership firm registration online fee of Rs.110.
A PAN card will reach the registered office of the partnership firm within 15-20 days after the documents have been verified. The acknowledgement number received after submitting the registration form can be used to track the status of the PAN card online.
PAN Card Application Form for Partnership Firms
On the PAN application form (Form 49-A), the partner must fill out the following information:
- Registrars of firms with M/S issue Certificates of Registration that include the name of the partnership firm.
- In accordance with the partnership deed, the firm was incorporated on this date.
- Addresses of the firm’s offices are specified in the partnership deed.
- Select ‘Partnership Firm’ under ‘Status of Applicant.
- According to the partnership deed, the firm’s registration number.
- Under ‘Source of Income’, select ‘Income from business/profession’.
- Select the appropriate business code for the partnership firm based on its business.
- Provide all the supporting documents with the application form/acknowledgement slip (if you filed online) to the TIN-FC office/Income Tax Department as proof.
- Indicate the name of the authorised partner in the declaration section.
- A copy of the application form must be signed by an authorised partner.