How to Apply for a PAN Card for a Partnership Firm?

The Buyt Desk

All firms need to have a PAN CARD. Applying for a PAN card needs some set of firm documents and partners documents. It can be done online through the NSDL portal.

In India, a partnership firm can be formed by any two or more people either by written or oral agreement. Such firms are regulated by the Partnership Act of 1932. In these firms, people make joint ventures to carry on a business or profession and agree to share the profits and losses of the business. A deed document known as a partnership deed is made and executed by all the partners of the partnership firm. Under the Income Tax Act, 1961, every year the firm needs to file tax returns irrespective of profit or loss. The partnership firm should obtain a PAN card to file the income tax returns (ITR). The PAN card is a document that symbolizes the existence of a firm. While filing the ITR of the firm, the partners must show a partnership deed along with a PAN card.

Fundamental essentials for Partnership Firm

Even before starting a firm, you should have a few fundamental and essential factors to call it a partnership. You need to have a contract for your partnership which includes the names of all partners, kind of business carried on, and agreement on how business will be carried on, how profits are shared and all kinds of terms and conditions of partnership. This document should be signed by all the partners and a minimum of two witnesses. This will be the partnership deed.

Paperwork to be done before Applying for PAN Card

You should have to go through a few formalities before applying for PAN. This will ensure that the process of procuring PAN is smooth. The paper works to be done are –

1. Notarized Partnership Deed.

2. Partnership Deed should mention one partner as a managing partner.

3. Partnership Deed should mention Date of firm formation.

4. Partnership Deed should mention Address of the firm.

5. Every page of the Partnership Deed should have signatures of all the partners.

6. Get a rubber stamp with the name ‘Partner’ mentioned at the bottom. This can be used for further signatures.

Steps to follow for online application of PAN Card for Partnership Firms

1. Visit the website of NSDL –  https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html

2. You will fill Form 49A for Indian citizens online and submit the form.

3. If any data submitted fails validation, the error(s) will be indicated.

4. Rectify the error(s) and re-submit the form.

5. A confirmation screen with all the data filled by you will be displayed for cross checking before final submission.

6. If needed you can edit and confirm the same. Now the form is ready to submit.

7. Choose the mode of payment – cheque, demand draft, credit card, debit card and net banking.

8. Once payment is done you will get an application number and you can use this to track your status.

9. The PAN card will be delivered to the mentioned address within a period of 20 working days.

Steps to follow for online application of PAN Card for Partnership Firms

1. Collect a PAN application form (Form 49A) from UTIISL agents or download the same from the NSDL or UTIISL websites.

2. Fill the form.

3. Attach supporting documents for proof of identity and address.

4. The managing partner must sign the form.

5. Submit this filled form along with documents and processing fees to the NSDL office.

6. The PAN card will be delivered to the mentioned address within a period of 20 working days.

The correct way of filling Form 49A – application form PAN Card for Partnership Firms

• Title – Select “M/S”.

• Name – Enter Firm name as stated in the Certificate of Registration or in the Partnership Deed. Enter in the first block which is meant for the surname.

• Date – Date of incorporation as stated in the partnership deed.

• Office Address -Enter as stated in the partnership deed.

• Status of Applicant – Select “Partnership firm”.

• Source of Income – Select “Income from business or profession” Or that is applicable.

• Business code – Select the one suitable for your business.

• Proof of identity, proof of address and date of birth – Partnership deed or the Certificate of Registration.

• Declaration – Mention the authorized partner’ name, place and today’s date.

Final guidelines

• Only one partner must sign the form.

• A partner should fill the form for better clarity.

• Errors in the form can be corrected and resubmitted.

• Keep the Partnership Deed signed and ready before applying for PAN.

• No photographs needed.

• An application fee of Rs. 107 only is applicable.

• You can track your PAN card online with the application number you receive after submitting the form.