Introduction
In countries like India, where the population is constantly increasing, it is crucial to keep track of identities and their authentication. That’s where a PAN card for a partnership firm comes into play. By issuing PAN cards, identification and tax documents for both individuals and businesses become easily accessible. This makes the PAN card an important document for taxpayers.
In this blog post, we will explore the process, elements, and other factors of obtaining a PAN card for a partnership firm.
What are Partnership Firms?
Partnership firms in India are governed by the Indian Partnership Act, 1932. According to 4 of this Act, a partnership is defined as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The individuals who have entered into a partnership are called “partners” and collectively termed “a firm”.
To constitute a partnership firm, five elements must exist. These elements include a partnership contract, a maximum of 20 partners, carrying on the business, profit sharing, and partnership for a mutual agency.
Elements of a Partnership Firm
To constitute a partnership firm, the following elements must co-exist:
1. Partnership Contract: A partnership firm relies on a contract. It is not based on inheritance, status, or operation of law. A contract is the essential fundamental element of a partnership firm.
2. Maximum Number of Partners is 20: A partnership firm must have at least two partners. The maximum number of partners in a banking business should not exceed ten, and in any other business, it should not exceed 20 partners.
3. Carrying On the Business: All partners must agree to carry on the business, which includes every profession, trade, and occupation.
4. Profit Share: The partners must share the profits earned in any ratio they prefer. The sharing of losses is also part of the partnership agreement.
5. Partnership for a Mutual Agency: Every partner is both an agent and principal for other partners. There should be a mutual agency within the partnership.
Why is a PAN Card Important for a Partnership Firm?
A PAN card is an important document issued by the Unique Identification Authority of India (UIDAI) to all taxpayers. It serves as the tax identity for income-generating individuals and businesses. For partnership firms operating in India, a PAN card is essential to track and prevent tax evasion. Additionally, partnership firms cannot avail of the benefits offered by the Indian government without a PAN card. It also helps in paying taxes at lower rates applicable to such businesses.
Formalities to Know Before Applying for a PAN Card for Partnership Firm
Before applying for a PAN card for a partnership firm, it’s important to be aware of the following formalities:
– The partnership deed must be duly notarized by the Indian notary authority.
– One person/partner should be assigned as the managing partner in the partnership deed.
– The partnership deed should mention the date of partnership formation and the firm’s address.
– All partners should sign all the pages of the partnership deed.
– A rubber stamp with “Partner” should be at the bottom of the act, and the managing partner will use the deed to apply for the PAN card.
Procedures of PAN Card Application for Partnership Firm
A PAN card for a partnership firm can be applied for through both online and offline modes.
PAN Card for Partnership Firm Online Process
The PAN card for a partnership firm can be applied for online through the official portal of NSDL. The online process involves the following steps:
Step 1: Visit the official portal of NSDL.
Step 2: Fill the application form 49A for the PAN card.
Step 3: Rectify any errors in the application form if required.
Step 4: Edit or confirm the data mentioned in the confirmation screen.
Step 5: Select the payment mode and make the payment.
Step 6: Receive an acknowledgement with a 15-digit acknowledgement number/slip.
Step 7: Take a printout of the slip, sign it, and attach two passport-sized photos.
Step 8: Enclose the required documents, acknowledgement slip, and demand draft (if applicable) in an envelope.
Step 9: Post the envelope to the designated address mentioned in the blog post.
Please note that digital submission of the PAN card application for partnership firms is also available through the online paperless application.
PAN Card for Partnership Firm Offline Process
Partnership firms can also apply for a PAN card through the offline mode. The offline process involves the following steps:
Step 1: Obtain a copy of the application form from UTIITSL agents or download it from the NSDL or UTIITSL portal.
Step 2: Submit the application form with correct information and attach two passport-sized photos.
Step 3: Make payment for the PAN card through demand draft.
Step 4: Attach self-attested copies of required documents.
Step 5: Mention the acknowledgement number on the envelope and post it to the designated address.
List of Documents Required for PAN Card Application for Partnership Firm
The following documents are required for applying for a PAN card for a partnership firm:
– Identity Proof
– Address Proof
– Birth Date Proof
– Declaration signed by the Karta of HUF (in case of HUF)
– Registration certificate for companies
– Registration certificate of the LLP firm for Limited Liability Partnership firms
– Partnership deed document
– Requisite fee or demand draft
Applicable Charges for PAN Card for Partnership Firm
The charges for applying for a new PAN card for partnership firms in India is ₹1,011.00. This includes application fees, dispatch charges, and GST. The charge for reprinting or changing the PAN card is ₹1,020.00, which includes the same components as the new PAN card.
Tips for Partnership PAN Card
Here are some tips to keep in mind while filling the PAN card form for a partnership firm:
– Ensure the firm’s name is the same as mentioned in the registration certificate and partnership deed.
– The name on the application should be accurate as it will be printed on the PAN card.
– Include the date of incorporation mentioned in the partnership deed.
– The status of the applicant should be “Partnership Firm”.
– The source of income should be “Business or Profession”.
– Use the appropriate business code according to the firm’s activities.
– Provide details of all the documents submitted with the application form.
– The authorized partner should sign the declaration section.
FAQs
Here are some frequently asked questions related to PAN cards for partnership firms:
1. How can I get a PAN card for a partnership firm?
You can apply for a PAN card via the official website of NSDL or through offline mode by downloading the PAN card application form.
2. Is an online application procedure available for the partnership PAN card?
Yes, the PAN card for the partnership firm can be applied for online through the official NSDL website.
3. Can a proprietorship firm apply for a PAN card?
A sole proprietorship firm can use their PAN card for the same.
4. How do I find the PAN number of a partnership firm?
You can find the PAN number of a partnership firm on the official e-Filing website by clicking on “Know Your PAN” and entering the details.
5. What is an LLP Pan card?
LLP PAN card refers to the tax identity document of a Limited Liability Partnership firm.
6. Do all partners of an LLP need to submit their PAN card?
Yes, all members of an LLP need to submit their PAN cards during registration.
7. Is a PAN card for a partnership firm necessary?
Yes, a PAN card for a partnership firm is necessary for tax purposes and availing government scheme benefits.
8. Can an unregistered partnership firm apply for a PAN card?
Yes, an unregistered partnership firm can apply for a PAN card as they are also a legal entity.
9. Can a PAN card for partnership firms be made free of cost?
The PAN card for a partnership firm is subject to nominal charges for physical PAN cards.
Conclusion
Obtaining a PAN card for a partnership firm is important for identification, tax purposes, and availing government benefits. The process involves formalities, documentation, and online or offline application procedures. By following the mentioned steps, partnership firms can successfully obtain a PAN card and comply with tax regulations. If you have any more questions or need assistance, visit the official NSDL website for further information and guidance.
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