PAN Card for Partnership Firm: 3 Things to Know

Every individual in India is eligible to form a partnership firm by a written or oral agreement under the Partnership Act of 1932. Just like individuals, partnership firms are also tax-paying entities. As a result, they also need a PAN card for tax purposes.Partnership firms can apply for a PAN card online or offline. But there are a few additional requirements to be eligible for a partnership firm PAN card. Take a look-

Before applying for the PAN card, the partnership firm needs to complete a few formalities. One of the most important of them is having a partnership deed. Here are some of the essential elements of such partnership deeds-

• One partner defined as the managing partner authorized to sign on behalf of all the partners
• Firm address
• Partnership formation date
• Signature of all the partners and two witnesses on all the pages

A notary should duly notarize the deed. The managing partner should also have a rubber stamp with the firm’s name with the word “Partner” mentioned at the bottom. This stamp will be used for signing the PAN card application.

As online PAN application is more convenient, it is preferred by most new partnership firms. Take a look at how partnership firms can apply for PAN card online-

• Visit the official website of the Income Tax Department
• Click on “New PAN for Indian Citizen,” also known as Form 49A
• Choose “Firm” as the "Applicant category" and fill the application form
• Select mode of payment from demand draft, cheque, net banking, and debit card to complete the payment

For offline application, the managing partner should visit the nearest TIN Facilitation Center. Fill the PAN card application form with a black pen before signing or stamping the application. Submit the application form along with the application fee. Note that only the managing partner is required to sign the application form.

The PAN card for partnership firm should be filled as follows-

• Write “M/S” before writing the partnership firm's name as it is in the partnership deed. Note that the name you mention here will be printed on the PAN card.
• Enter the date of incorporation and office address.
• Select “Partnership Firm” as “Status of Applicant.”
• Choose “Income from business or profession” or any other choice applicable to the firm as your “Source of Income.”
• Select the “Business Code” from the list of available options.
• Select the documents you’ll be submitting along with the application form. You can submit a copy of your Partnership Deed or Certificate of Registration.
• Write the name, date, and place in the “Declaration” column.

As tax-paying entities, every partnership firm in India should mandatorily have a PAN card. Now that you know the application process in detail, you can visit the Income Tax website to apply for the PAN card.Ensure that you have your partnership deed ready for smooth application. After successfully submitting the application form, you can also check its status with the help of the acknowledgment number. It generally takes up to 15 working days to receive your partnership firm PAN card.Ready to make the most of your money? Start your tax planning journey now!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.