Partnership Firms in India are governed by the Indian Partnership Act 1932 which refers partnership according to Sec 4 as “Partnership is the relation between two persons who have agreed to share the profits of a business carried on by all or any of the acting for all”. It is of very high importance that persons who have entered into partnership should possess PAN Card for Partnership Firm. In order to income tax returns file it is mandatory to submit the Partnership Deed or the Certificate of Registration to the authority as proof of existence of the firm along with PAN card Form 49A.
Essential Elements of a PAN Card for Partnership Firm:
Before getting into partnership firm, there is need of some essential elements without which it can’t be called as partnership. Below mentioned are some of the essential elements required:
- Contract of Partnership
- Number of Persons
- Agreement to carry on business
- Sharing of Profits
- Mutual Agency in Partnership
Above mentioned elements are necessary requirements that needs to be fulfilled to carry on the business through partnership firm. If any of the elements failed to prove themselves, it will not be considered as a partnership firm.
Formalities Required before Applying for PAN Card
Before making any application for PAN, one should go through all the formalities mentioned below for proper execution of business:
- A Partnership Deed duly notarized by the notary in India.
- Partnership Deed should define one partner as a managing partner who will be responsible to sign on behalf of the firm.
- Date of formation of the partnership should be mentioned.
- Address of the firm
- All pages of the deed should be signed by all the partners
- A rubber stamp with the name ‘Partner’ mentioned at the bottom. As this can be used by the managing partner to sign the application form for PAN card.
How to Apply for PAN card Online for Partnership Firm?
Partners looking to apply for PAN Card online now can easily do so by following the below mentioned steps:
- Visit the website of NSDL at https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
- The form is applicable for both Indian citizens residing in India and outside of India.
- Applicant will fill Form 49A online and submit the form.
- If the data submitted fails in any format level validation, a response indicating the error(s) will be displayed on the screen.
- The applicant shall rectify the error(s) and re-submit the form.
- If there are no format level error(s), a confirmation screen with data filled by the applicant will be displayed.
- The applicant may either edit or confirm the same.
- Select your mode of payment.
- You can choose between cheque, demand draft, credit card, debit card and net banking.
How to Apply for PAN Card Offline for Partnership Firm?
Applicant’s looking for applying PAN Card offline can follow the below mentioned steps to process the PAN card application form:
- Collect a copy from UTIISL agents or download the PAN card application form from the NSDL or UTIISL websites.
- Fill the form and attach supporting documents (proof of identity, address and photographs)
- Submit the form and documents to the NSDL office along with the processing fee.
- The PAN card will be sent to the given address within a period of 15 working days.
- The managing partner will have to sign the form, or use the rubber stamp.
- Submit the form and the fee required.
Procedure of filling the PAN Application form for Partnership Firm
Here you will find the procedure of how to fill the PAN application for Partnership firm:
- Enter the name of the firm as mentioned in Partnership Deed or Certificate of Registration. The name you will mention here will be the name mentioned on PAN card, so fill carefully.
- Enter the Date of Incorporation according to Partnership Deed
- Mention your office address as mentioned in Partnership Deed
- Select status of applicants as Partnership Firm
- Enter the registration number of the firm
- Select source from business in source of income column or another option as applicable.
- Mention the documents needed to submit for Proof of Identity, Proof of Address and Date of incorporation in the given space.
- In the declaration column, managing partner will sign mentioning name, place and date.