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PAN Registration

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PAN Registration in India

PAN registration refers to the process of applying for and obtaining a Permanent Account Number (PAN) from the Income Tax Department of India. PAN is a unique alphanumeric code used as an identifier for individuals, entities, and businesses. It is essential for various financial transactions, tax purposes, and legal compliance in India.

The PAN (Permanent Account Number) in India follows a specific format:

  • Format: The PAN is a 10-character alphanumeric code.
  • Example: A typical PAN number looks like this: ABCPD1234E

Here’s a breakdown of the PAN number format:

  • The first five characters are letters (alphabets) - these can be any combination from A to Z.
  • The next four characters are numbers (digits) - these can range from 0 to 9.
  • The last character is again a letter (alphabet) - this is usually an alphabet.

Why PAN Registration?

Obtaining a PAN card is mandatory for:

  • Income Tax Filing: PAN is required to file income tax returns in India
  • Financial Transactions: It is necessary for opening bank accounts, receiving taxable salaries, or conducting business transactions exceeding specified limits.
  • Investments: PAN is required for investing in securities such as stocks, mutual funds, and bonds.
  • Property Transactions: It's essential for buying or selling property above a specified value.

Types of PAN Cards

In India, there are primarily two types of PAN cards issued based on the type of entity or individual applying:

Individual PAN Card:

Issued to individual taxpayers, including residents, non-residents, and foreign nationals residing in India who require a PAN for various financial and non-financial transactions.

Company/Corporate PAN Card:

Issued to entities such as companies, firms, LLPs (Limited Liability Partnerships), associations, trusts, and any other non-individual entities that are required to have a PAN for conducting business activities.

Additional Types:

In addition to these primary types, there are variations based on specific needs:

HUF (Hindu Undivided Family) PAN Card:

Issued to Hindu Undivided Families, which are considered a separate taxable entity under Indian tax laws.

Government PAN Card:

Issued to entities of the government, both central and state governments, for official purposes and transactions.

Minor PAN Card:

Issued to minors, where a PAN is required for investments and other purposes.

Special Cases:

NRI (Non-Resident Indian) PAN Card:

Specifically issued to Non-Resident Indians who need a PAN for financial transactions in India.

AO (Army Officer) PAN Card:

Issued to army personnel for official use.

These types cater to different categories of taxpayers and entities to ensure compliance with tax regulations and facilitate smooth financial transactions in India.

How to Apply for PAN Registration?

Online Application:
  • Visit the official NSDL or UTIITSL website.
  • Fill out Form 49A (for Indian citizens) or Form 49AA (for foreign nationals/entities).
  • Upload scanned copies of required documents such as identity proof, address proof, and photographs.
  • Pay the application fee online
Offline Application:
  • Obtain Form 49A/49AA from NSDL/UTIITSL service centers or authorized PAN centers.
  • Fill out the form, attach the necessary documents (as mentioned above), and submit them in person.
Processing and Issuance:
  • Once submitted, the application is processed within 15-20 working days.
  • Upon approval, the PAN card is dispatched to the applicant's address.
Importance of PAN Verification:
  • Verify PAN details online to ensure accuracy and validity.
  • Link PAN with Aadhaar to avail of various financial services seamlessly.

Benefits of PAN Registration

Mandatory for Financial Transactions:

PAN registration is mandatory for conducting various financial transactions such as opening bank accounts, investing in securities, buying or selling immovable property, etc. It ensures compliance with regulatory requirements.

Income Tax Filing:

PAN is essential for filing income tax returns in India. It facilitates accurate reporting of income and taxes paid, ensuring individuals and entities meet their tax obligations.

Identity Proof:

PAN serves as a valid identity proof across India. It is widely accepted as an official identification document for various purposes, including opening new accounts and fulfilling KYC requirements.

Avoiding Tax Evasion

PAN helps track financial transactions and prevent tax evasion. It enhances transparency in financial dealings, contributing to a fairer tax system and promoting economic integrity.

International Transactions

PAN is required for individuals and entities engaging in international transactions, such as receiving foreign remittances or making investments abroad. It facilitates compliance with foreign exchange regulations.

Government Subsidies and Benefits:

PAN registration is necessary for availing government subsidies, benefits, and schemes. It ensures that eligible individuals receive welfare payments and subsidies efficiently.

Credit Card Application

PAN is often required when applying for credit cards or loans. It helps financial institutions assess an individual's creditworthiness based on their financial history and tax compliance.

Legal Compliance:

PAN registration ensures compliance with legal and regulatory requirements set by the Income Tax Department of India. It demonstrates a commitment to transparent financial practices and regulatory adherence.

Investment and Business Opportunities:

Having a PAN opens doors to investment opportunities in stocks, mutual funds, bonds, etc. It also facilitates business transactions and partnerships, enabling smoother operations and expansions.

Ease of Verification and Authentication:

PAN details can be easily verified online, providing instant authentication of an individual's tax status and financial credibility. It enhances trust and reliability in financial transactions.

How Filing Lounge Simplifies PAN Registration?

Filing Lounge offers seamless PAN registration services to ensure hassle-free compliance with tax regulations. Here’s how we assist you:

  • Expert Guidance: Our team provides expert guidance throughout the PAN application process, ensuring accuracy and compliance.
  • Online Application: We facilitate easy online PAN application submission through a user-friendly platform.
  • Documentation Support: Assistance in preparing and organizing required documents, including proof of identity, address, and photographs.
  • Timely Updates: Regular updates on application status and prompt resolution of any queries or issues.

Related Guides

Documents Required For PAN

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition A sole proprietorship is an unregistered business entity managed by a single individual. A legal contract between multiple parties to jointly manage and run a business operation. A business type that combines aspects of a partnership and the limited liability of a corporation. A registered business where owners and shareholders have limited liability.
Ownership
  • Single individual
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners: Min 2(No upper limit)
  • Min: 1 shareholder (for a private company), 7 shareholders (for a public company)
  • Max: 200 shareholders (for a private company), no upper limit (for a public company)
For One Person Company
  • Minimum: 1 individual
  • Maximum: 1 individual
Registration Time 7-10 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • Partnership Deed
  • PAN card of the partnership firm
  • LLP Agreement
  • Incorporation Certificate
  • PAN card of the LLP
  • MOA
  • AOA
  • Certificate of incorporation
  • PAN card of the company
Governance No specific governing law Governed by the terms outlined in the partnership deed Governed by the LLP agreement Governed by a formal structure including a Board of Directors
Transferability Business cannot be transferred Ownership transfer requires the consent of all partners as outlined in the partnership deed. Transferable Easily Transferable for public companies. In private companies, there might be some restrictions.
Compliance Requirements
  • Income tax filing if the turnover exceeds Rs. 2.5 lakhs.
  • Must file ITR 5
  • Must file ITR 5
  • File Form 11
  • Form 8
  • MCA filing
  • Auditor's appointment
  • File ITR 6

PAN FAQ's

What is a PAN card?

A PAN card is a unique 10-digit alphanumeric identification number issued by the Income Tax Department in India. It serves as a primary key to store the financial information of an individual or entity.

Who needs a PAN card?

A PAN card is required for any individual or entity that is liable to pay taxes in India, or for any financial transaction specified by the Income Tax Department.

How can I apply for a PAN card?

You can apply for a PAN card online through the NSDL or UTIITSL websites or by submitting a physical application form at designated PAN centers.

What are the documents required for a PAN card application?

Typically, proof of identity (PoI), proof of address (PoA), proof of date of birth (DoB), and photographs are required. Documents like an Aadhar card, passport, voter ID, etc., are commonly accepted.

Is it mandatory to link PAN with Aadhaar?

Yes, linking PAN with Aadhaar is mandatory as per the Income Tax Department's directives.

How long does it take to get a PAN card?

If applying online, PAN cards are usually dispatched within 15-20 days from the date of application. Physical applications may take longer.

What is the fee for applying for a PAN card?

The fee varies depending on whether you are applying for a physical PAN card or an e-PAN. As of now, the fee for a physical PAN card application is Rs. 110 (excluding GST).

Can I apply for a PAN card for my minor child?

Yes, you can apply for a PAN card for a minor child. The parent or guardian must provide their own PAN details along with the child's birth certificate as proof of date of birth

Can I make changes or corrections to my PAN card details?

Yes, you can request changes or corrections to your PAN details online through the NSDL or UTIITSL websites.

What should I do if I lose my PAN card?

The companies registered in India are required to file the MCA annual return each year informs AOC 4 and MGT 7.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

FSSAI Registration
IE Code
Trademark Registration
Copyright Registration
Salaried Tax-filing
GST Return Filing

MCA Compliance

Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).

Compliance For Form Due date Penalty
Commencement of Business Intimation to Registrar for Commencement of Business Within 180 days from incorporation INR 50,000 on company and INR 1,000 per day on directors for each day of default
Annual KYC of Directors DIR 3 E-KYC 30th September of every year INR 5,000 for late filing
Appointment of Auditor Form ADT 1 Within 15 days of the AGM INR 300 per day (max INR 12,000)
Financial Statements Form AOC 4 Within 30 days from the AGM INR 100 per day of default
Annual Return Form MGT 7 Within 60 days from the AGM INR 100 per day of default

All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.

LLP Compliance Form Due date Penalty
Annual KYC of Directors DIR 3 KYC 30th September of every year INR 5,000 for late filing
Annual Return Form 11 May 30th every year INR 100 per day of default
Statements of Accounts and Solvency Form 8 30th October every year INR 100 per day of default (minimum penalty INR 10,000)

In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.

Entity Compliance Form Due date
Private Limited Company Annual Return MGT-7 Within 60 days from the conclusion of the AGM
Financial Statements AOC-4 Within 30 days from the conclusion of the AGM
DIR-3 KYC DIR-3 KYC 30th September every year
Return of Deposits DPT-3 30th June every year
Appointment of Auditor ADT-1 Within 15 days from the conclusion of the AGM
Income Tax Return (Non-audit case) ITR-6 31st July every year
Income Tax Return (Audit case) ITR-6 30th September every year
Annual GST Return GSTR-9 31st December of the subsequent financial year
MSME Form Form 1 (MCA) half-yearly return by 31st October (April to September), & 30th April for the period October to March every year
Limited Liability Partnership Income Tax Return (Non-audit case) ITR 5 31st July every year
Income Tax Return (Audit case) ITR 5 30th September every year
Annual Return Form 11 30th May every year
Financial Statements Form-8 30th October every year

Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.