Applying for PAN for a Business
Chapter Nine
Syllabus topic 3, "PAN & TAN application for business Under The Income Tax Act, 1961."
Pages 18 to 19 of 80
The form
Form 49A for a resident applicant, and Form 49AA for a non-resident or a foreign entity. MU's scope note confines this paper to individuals and partnership firms, so Form 49A is the one to know.
The form is one page of boxes, and every applicant fills the same one whatever their status. The status is declared in the box headed "Status of applicant", and it decides which of the identity and address documents will be accepted.
Where the application goes
The Department does not process applications itself. Two agencies are authorised.
| Agency | What it is |
|---|---|
| Protean eGov Technologies, formerly NSDL e-Governance | Receives applications, verifies documents and forwards them |
| UTI Infrastructure Technology and Services Limited (UTIITSL) | The same |
Either may be used, online or through a local counter. An application may also be made through the Income Tax Department's own e-filing portal, where an applicant with an Aadhaar number can obtain an instant e-PAN free of charge in a few minutes.
The documents, by applicant
MU's note limits the paper to individuals and partnership firms, and those two are set out in full.
An individual, which includes a proprietor applying for his business.
| Needed | Any one of |
|---|---|
| Proof of identity | Aadhaar, elector's photo identity card, driving licence, passport, ration card with photograph, arm's licence, a photo identity card issued by the Central or a State Government |
| Proof of address | Aadhaar, elector's card, driving licence, passport, post office passbook with address, latest property tax assessment order, domicile certificate, or an electricity, landline, broadband, water or gas bill not more than three months old, or a bank account statement not more than three months old |
| Proof of date of birth | Birth certificate, matriculation certificate, passport, driving licence, marriage certificate, domicile certificate, pension payment order |
| Also | Two recent passport size photographs, and the fee |
A proprietor does not get a separate PAN for the business. The business is not a person. He applies as an individual and that PAN is the business's PAN. This is asked, and the wrong answer, that a proprietorship has its own PAN, is common.
A partnership firm.
| Needed | What is accepted |
|---|---|
| Proof of identity and address of the firm | A copy of the partnership deed, or a copy of the certificate of registration issued by the Registrar of Firms |
| Signature | By a partner, who signs in the box, with his own name and status stated |
| Also | The fee |
No photograph is required for a firm, because a firm has no face. The photograph boxes are for individuals only.
The steps
- Choose the route. The e-filing portal for an instant e-PAN with Aadhaar, or Protean or UTIITSL for the ordinary route.
- Fill Form 49A, taking care that the name is written exactly as it is to appear.
- Choose the mode of submission. Aadhaar-based paperless e-KYC, digital signature, or physical despatch of the signed acknowledgement with the documents.
- Pay the fee. It is small, and it is higher where the card is to be despatched outside India.
- Submit. An acknowledgement number of fifteen digits is issued.
- Send the signed acknowledgement with the documents, where a paperless mode was not used, within the time stated on it.
- Track the application on the agency's site by the acknowledgement number.
- Receive the PAN. The e-PAN by email, and the physical card by post.
Applying for PAN for a Business
An instant e-PAN through the e-filing portal takes minutes and costs nothing. The ordinary route takes about a fortnight.
The commonest reasons an application is rejected
| Reason | The fix |
|---|---|
| Name on the form does not match the proof of identity | Write the name exactly as on the document, including initials expanded or not as they appear |
| Signature outside the box, or in a language the box does not accept | Sign within the box; a thumb impression must be attested by a magistrate, notary or gazetted officer |
| Photograph stapled or unclear | Paste, do not staple, and use a recent photograph |
| Address proof older than three months where a bill or a statement is used | Use a current one |
| Applicant already holds a PAN | Section 262(8) forbids a second one. Apply for a correction to the existing PAN instead |
| Firm's deed not signed by all partners | Submit a complete, executed deed |
After allotment
Three things follow, and each is a duty rather than a courtesy.
Quote it. Section 262(3): in every return, in all correspondence with any income-tax authority, and in all challans.
Link it with Aadhaar. Sections 262(5) and 262(6). An unlinked PAN becomes inoperative.
Report a change. Section 262(4): any change in address, or in the name and nature of the business on the basis of which the PAN was allotted, must be intimated to the Assessing Officer. A firm that changes its name or moves its office and does not report it is in default of a statutory duty, and it will also fail the address check at the next registration it applies for.
The rest of this subject
These notes are cut from the University's printed syllabus. Open the syllabus itself, or the past papers, for the same subject.