Get Your Pan Card: Owner, Director, Proprietor

A sole proprietorship is a business entity that is run by a single individual, who is the sole owner and is known as the proprietor. It is one of the easiest forms of business registration as it has very few requirements and formalities. The proprietor is solely responsible for all the debts and liabilities attached to the business. As there is no legal distinction between the owner and the business, the proprietor can use their PAN for the proprietorship business. This PAN is essential for various financial and tax-related transactions. To obtain a PAN, the proprietor must fill out Form 49A with accurate details and provide supporting documents such as identity proof and address proof.

What is a PAN card?

A PAN card is a Permanent Account Number card. It is a vital identification document issued by the Indian Income Tax Department. The PAN card is issued in the form of a laminated card or a PDF file known as an e-PAN.

The PAN is a ten-character alphanumeric identifier, unique to each cardholder. The first five characters are letters (in uppercase by default), followed by four numerals, and the last (tenth) character is a letter. The fourth character identifies the type of holder of the card. For example, 'P' denotes an individual or person. The first three characters are three letters forming a sequence of alphabetical letters from AAA to ZZZ. The fifth character is the first character of either the first name, surname, or last name of the person. The last character is an alphabetic digit used as a check sum to verify the validity of the code.

The PAN card is necessary for filing income tax returns (ITR) and is becoming mandatory for opening a new bank account, making bank deposits above ₹50,000, purchasing and selling immovable properties, and vehicles, etc.

The PAN card is not acceptable as proof of Indian citizenship, as it is also issued to foreign nationals (such as investors) subject to a valid visa.

Who needs a PAN card?

A PAN card is a vital form of identification in India, and it is necessary for various activities. Here are some of the people who need a PAN card:

Indian Citizens/Companies/Entities

• All existing assessees or taxpayers or persons who are required to file a return of income, even on behalf of others, must have a PAN.
• Any person who intends to enter into economic or financial transactions where quoting a PAN is mandatory must also have one.
• Indian citizens/companies/entities need to apply for a PAN card using Form 49A.
• Basic supporting documents required include identity proof, address proof, and date of birth proof.
• Minors can also apply for a PAN card.
• Mentally retarded individuals can obtain a PAN through their representatives.
• Hindu Undivided Families (HUF) are separate entities and can apply for a PAN card. The head (Karta) of the family can apply on behalf of the family.

Foreign Citizens/Entities

• Foreign citizens/entities can use Form 49AA to apply for a PAN card.
• Basic supporting documents required include ID and address proof, along with date of birth proof.
• Foreign entities are also eligible to apply by submitting a registration certificate from the country where the entities are situated.

Sole Proprietors

• Sole proprietors can use their personal PAN card for their business.
• The proprietor's name will appear on the PAN card of a sole proprietorship firm.
• The proprietor must obtain a PAN card for various financial and tax-related transactions undertaken by the sole proprietorship.

Students

Students can also apply for a PAN card. There is no minimum age requirement to obtain a PAN card.

How to get a PAN card

A PAN card, or Permanent Account Number card, is a vital form of identification in India. It is issued by the Indian Income Tax Department and contains a unique 10-digit alphanumeric code. This code helps the government monitor and regulate financial transactions, ensuring transparency and accountability in the taxation system.

Obtain Form 49A

This is the application form for a new PAN. You can get it online or from your local UTIITSL or NSDL office.

Fill out the form

Complete the form with accurate details, including your name, date of birth, email address, mobile number, and other relevant contact information.

Attach supporting documents

You will need to provide proof of identity, address, and date of birth. Examples of accepted documents include:

• Aadhaar card
• Voter ID
• Passport
• Driving license
• Utility bills (electricity, water, gas)
• Birth certificate
• SSLC certificate or mark sheet of a recognized body

Pay the processing fee

The fee can be paid online or via demand draft. The cost of applying for a PAN card to be dispatched within India is Rs. 107/-. For addresses outside of India, the fee is Rs. 1017/-.

Submit the application

You can submit the application by mail or in person at your nearest NSDL or UTIITSL office, along with the supporting documents and payment.

Receive an acknowledgment receipt

After submitting your application, you will receive an acknowledgment receipt with a unique 15-digit number. Keep this number to track your application status.

Wait for verification

The authorities will verify the information in your application. They may ask for clarification or additional documents.

Receive your PAN card

Once your application is verified, your PAN card will be allotted and sent to your registered address. The PAN number will also be communicated to you separately.

Start using your PAN card

Your PAN card can now be used for various financial and tax-related transactions, including filing income tax returns and conducting business activities.

Please note that it usually takes about 15 working days to receive the PAN card once the application has been submitted.

What is the process for a sole proprietorship firm to get a PAN card?

The process of obtaining a PAN card for a sole proprietorship firm is relatively straightforward and can be completed by following these steps:

Step 1: Gather the Required Documents

First, gather the necessary documents, which typically include:

• Proof of identity (such as an Aadhaar card, Voter ID, passport, or driving license)
• Proof of address (such as utility bills or a rental agreement)
• Proof of date of birth (such as a high school leaving certificate)
• Two recent passport-size photographs of the proprietor
• Copy of the proprietor's PAN card

Step 2: Obtain and Fill Out the Application Form

Obtain Form 49A, the application form for a PAN card. This can be done online or by visiting a local UTIITSL or NSDL office. Fill out the form with accurate details of the sole proprietorship, including the business name, address, contact information, and other relevant information.

Step 3: Attach Supporting Documents

Attach the necessary supporting documents mentioned in Step 1 to the application form. These documents serve as proof of identity, address, and the existence of the business.

Step 4: Pay the Processing Fee

Pay the applicable processing fee for the PAN card application. The fee can typically be paid online or through a demand draft. The cost of the PAN card is approximately Rs. 110 for Indian residents and Rs. 864 for foreign residents.

Step 5: Submit the Application

Submit the completed application, along with the supporting documents and payment, to the nearest NSDL or UTIITSL office. Alternatively, you can mail the application and documents to the appropriate office.

Step 6: Receive the Acknowledgment Receipt

After submitting the application, you will receive an acknowledgment receipt containing a unique 15- or 16-digit acknowledgment number. Keep this number safe, as it will be needed to track the application status.

Step 7: Wait for Verification and Issuance of PAN Card

The authorities will verify the information provided in the application. If there are any discrepancies, they may request additional clarification. Once the application is verified, the PAN card will be issued and sent to the registered address. The PAN number may also be communicated separately.

Step 8: Receive the PAN Card

The PAN card will be delivered to the registered business address. The card will include the business name, proprietor's name, and PAN number.

Additional Information:

It is important to note that a sole proprietorship firm does not require a separate PAN card. The proprietor can use their personal PAN card for business purposes, as there is no legal distinction between the owner and the business in a sole proprietorship. However, obtaining a PAN card is crucial for tax-related transactions and maintaining clear financial records.

What are the documents required for a sole proprietorship PAN card?

A sole proprietorship is a business with no legal distinction between the owner and the business. The owner is the sole decision-maker and manager and is solely responsible for the business's debts and liabilities.

• Proof of Identity: This can include a Driving License, Voter ID, Passport, Aadhar Card, or any other government-issued photo ID.
• Proof of Address: This can include an Aadhar Card, Voter ID, Passport, Driving License, or utility bills such as electricity, water, or gas bills.
• Proof of Date of Birth: This can include a High School Leaving Certificate or any pass certificate with the date of birth mentioned.
• Proof of the Existence of the Business: This can include a registration certificate, business license, or any official document issued by a government authority.
• Passport-sized photographs: Two recent photographs of the proprietor are required.
• PAN Card of the Proprietor: A copy of the proprietor's PAN card is also required.

In some cases, additional documents may be required, depending on the jurisdiction and the assessing officer's discretion.

It is important to note that the PAN card for the proprietorship firm will be in the name of the proprietor, as the firm does not have a separate legal existence. The proprietor can use their personal PAN for the sole proprietorship business.

Frequently asked questions