Partnership Firm PAN Card Apply Online – Step-by-Step Process

Starting a new business venture with partners is an exciting journey. As you lay the groundwork for your operations, one of the first and most critical steps is securing a unique legal identity for your firm. This essential process begins with a partnership firm PAN card application. The Permanent Account Number (PAN) is a non-negotiable requirement for any partnership firm in India. It serves as the primary identifier for all financial transactions, from opening a business bank account to filing taxes and ensuring legal compliance. This blog post is a comprehensive online PAN card application guide, meticulously designed to walk you through the entire process smoothly and efficiently, ensuring your firm starts on the right legal footing.

Why is a PAN Card Mandatory for a Partnership Firm?

Under the Indian Income Tax Act, a partnership firm is considered a separate legal entity for the purpose of taxation, distinct from its individual partners. This distinction is what makes a dedicated PAN card in the firm’s name an absolute necessity. Without it, your business cannot legally operate or engage in financial activities. The PAN card is the key that unlocks several mandatory business functions, acting as a foundational document for your firm’s existence in the eyes of the law and financial institutions. It is the first step towards building a transparent and compliant business structure, essential for long-term growth and stability.

To Open a Firm’s Current Bank Account

One of the immediate needs of a new partnership firm is to open a current bank account to manage its finances. No bank in India, whether public or private, will permit a business entity to open a current account without a PAN card issued in the firm’s name. This is a strict KYC (Know Your Customer) norm mandated by the Reserve Bank of India. The bank account is crucial for all business transactions, including receiving payments from clients, paying suppliers, managing payroll, and maintaining a clear record of the firm’s cash flow. Therefore, securing a PAN is the very first prerequisite to formalizing your firm’s financial operations.

For Filing Income Tax Returns (ITR)

As a separate legal entity, your partnership firm is liable to pay taxes on its income. The firm must file its own annual Income Tax Return (ITR) with the Income Tax Department, independent of the personal tax returns of its partners. The PAN is the primary identifier used for all tax-related activities. The entire process, from calculating the firm’s tax liability and paying advance tax to filing the annual ITR and receiving any potential refunds, is linked to the firm’s PAN. For a detailed guide, see our post on Income Tax Return Filing for Partnership Firm – ITR Form, Due Date & Checklist. Without it, you cannot fulfill your tax obligations, leading to severe penalties and legal complications.

For Tax Deducted at Source (TDS) Compliance

Businesses are often required to deduct tax at source (TDS) on certain payments they make, such as salaries to employees, rent for office premises, or fees for professional services. The partnership firm, as a deductor, must have a PAN to deposit the deducted TDS with the government and file quarterly TDS returns. The PAN is essential for generating a TAN (Tax Deduction and Collection Account Number), which is mandatory for all TDS compliance. Failure to comply with TDS regulations can result in heavy fines and interest charges, making the PAN card a vital tool for regulatory adherence.

To Obtain GST Registration

The Goods and Services Tax (GST) is a critical component of India’s tax structure. If your partnership firm’s annual turnover exceeds the prescribed threshold (currently ₹40 lakh for goods and ₹20 lakh for services in most states), obtaining GST registration is mandatory. The very first document required to initiate the GST Registration for Partnership Firm – Threshold, Documents & Process is the PAN card of the business entity. The GSTIN (Goods and Services Tax Identification Number) is a 15-digit number, where the first 10 digits are the firm’s PAN. Therefore, you cannot even begin the GST application process without first securing a PAN for your partnership firm.

Essential Documents: Partnership Firm PAN Card Requirements

Before you begin the partnership firm PAN card application online, it’s crucial to gather all the necessary documents. Having everything ready beforehand will streamline the process and prevent unnecessary delays or application rejections. The documentation requirements are straightforward and are primarily focused on establishing the legal existence of the firm and the identity of the person authorizing the application on its behalf. Ensuring these documents are clear, valid, and correctly prepared is the most important preparatory step in this journey.

Proof of Identity and Address of the Firm

The government needs to verify the legal existence and operational address of your partnership firm. For this, one of the following documents is required:

Primary Document: A copy of the Partnership Deed. This is the foundational legal document that outlines the terms, conditions, rights, and responsibilities of the partners and the firm. It serves as both proof of identity and proof of address. You can download a Partnership Deed Format (PDF/Word) – Free Download + Sample Clauses to get started.
Alternative Document: If your firm is registered with the Registrar of Firms, a copy of the Certificate of Registration issued by the Registrar can also be submitted as proof of the firm’s existence.

Documents of the Authorized Partner

The PAN application must be signed and submitted by one of the partners who is authorized to act on behalf of the firm. This authorized partner must provide their personal KYC documents to validate their identity and authority. You will need one document from each of the following categories for the signing partner:

Proof of Identity:
- Aadhaar Card
- Voter ID Card
- Driving License
- Passport
Proof of Address:
- Aadhaar Card
- Passport
- Latest utility bills (electricity, water, or gas bill not more than 3 months old)
- Bank account statement (not more than 3 months old)
Proof of Date of Birth:
- Birth Certificate
- Aadhaar Card
- Passport
- Matriculation Certificate

The Step-by-Step PAN Card Application Process Online

The government has made it convenient to apply PAN card for partnership firm India through dedicated online portals. The two authorized agencies for this are NSDL e-Governance Infrastructure Limited (NSDL) and UTI Infrastructure Technology and Services Limited (UTIITSL). This guide will provide a detailed walkthrough of the NSDL process, which is widely used and user-friendly.

Step 1: Visit the TIN-NSDL Portal

Begin the process by navigating to the official NSDL portal for online PAN applications. Ensure you are on the correct website to protect your firm’s sensitive information.

Official Portal: TIN-NSDL Online PAN Application

Step 2: Select the Correct Application Form (Form 49A)

On the homepage of the portal, you will see a form to initiate a new application. It is crucial to select the correct options here to ensure you are filling out the right form for your entity.

Under ‘Application Type’, choose ‘New PAN – Indian Citizen (Form 49A)’ from the dropdown menu. Form 49A is used for all Indian entities, including partnership firms.
Under ‘Category’, select ‘Firm’ from the list. This specifies that the PAN is for a partnership firm.

Step 3: Fill in the Firm’s Basic Details

After selecting the correct type and category, you need to provide the basic details of your firm. Fill in this information carefully as it will be used for all future correspondence.

Enter the full legal Name of the Firm as mentioned in your Partnership Deed.
Enter the Date of Incorporation/Creation, which is the date on which the Partnership Deed was executed.
Provide a valid Email ID and Mobile Number. The e-PAN and all communication will be sent to this email address.
After submitting these details, a Token Number will be generated and sent to your email. Save this number immediately. It allows you to resume your application from the same point if you get disconnected or need to complete it later.

Step 4: Complete the Full Application Form

You will now be redirected to the main application form. Proceed through the different sections with care.

Source of Income: In this section, you must select ‘Income from business/profession’. You can also select other applicable sources if any.
Address of Office: Enter the complete address of the firm’s principal place of business. This address must match the one mentioned in the Partnership Deed you are submitting as proof.
Assessing Officer (AO) Code: The AO Code is a unique code that identifies the jurisdiction of the Income Tax officer who will handle your firm’s tax matters. You can find this code using the search facility on the NSDL website.
- Click on the search link provided in the form.
- Select your State and City.
- The portal will display a list of AO codes relevant to your area. Choose the one that is most appropriate for your firm. You can find guidance on the portal itself. Search for your AO Code here.

Step 5: Make the Payment

Once the form is completely filled and reviewed, you will be directed to the payment gateway. The fee for the PAN application is nominal.

The application fee is typically ₹107 (inclusive of taxes) if the communication address is within India.
You can make the payment using various methods like Credit/Debit Card, Net Banking, or Demand Draft. Online payment is the fastest and most recommended method.

Step 6: Authenticate and Submit

After successful payment, an acknowledgment slip will be generated. This is a critical document.

The system will generate a pre-filled Acknowledgment Form. Download and print this form.
The authorized partner must affix a recent passport-sized photograph in the space provided.
The partner must then sign across the photograph and also in the signature box below it. The signature should be clear and preferably with a black ink pen.

Step 7: Send Documents to NSDL

This is the final and most important step of the step-by-step PAN card application process. The application is not fully complete until NSDL receives your physical documents for verification.

Gather the following documents:
1. The signed Acknowledgment Form with the photograph.
2. A self-attested copy of the Partnership Deed.
3. Self-attested copies of the authorized partner’s Proof of Identity, Address, and Date of Birth.
Place all these documents in an envelope and superscribe it with ‘APPLICATION FOR PAN – <Your 15-digit Acknowledgment Number>’.
Send the envelope via speed post or registered post to the NSDL office in Pune at the following address:
Income Tax PAN Services Unit,
NSDL e-Governance Infrastructure Limited,
5th Floor, Mantri Sterling, Plot No. 341,
Survey No. 997/8, Model Colony,
Near Deep Bungalow Chowk, Pune – 411 016

How to Track Your Partnership Firm PAN Card Application

After dispatching your documents, you can easily monitor the progress of your application online. NSDL provides a simple tracking facility for this purpose.

Visit the official NSDL PAN status tracking page: Track PAN/TAN Application Status.
Select the application type as ‘PAN – New/Change Request’.
Enter the 15-digit acknowledgment number that you received upon submitting your form.
Enter the captcha code and click ‘Submit’.

The portal will display the current status of your partnership firm PAN card application online, letting you know if it is under process, if any discrepancy is found, or when the PAN has been allotted.

Conclusion

Obtaining a PAN is the foundational step for your partnership firm’s financial and legal journey in India. By following this guide, you can navigate the process with confidence. To successfully complete your partnership firm PAN card application, you must gather the correct documents (especially the Partnership Deed), carefully fill out Form 49A on the official NSDL portal, make the payment, and most importantly, promptly mail the signed acknowledgment form along with all the required document copies to the NSDL office. This ensures your application is processed without any hitches, setting a strong, compliant base for your business.

The partnership firm PAN card application involves careful documentation and procedural accuracy. To ensure your application is error-free and processed quickly, let the experts at TaxRobo manage it for you. Contact us today for seamless business registration and compliance services!

Frequently Asked Questions (FAQs)

1. How long does it take to get a PAN card for a partnership firm?

After NSDL receives your physical documents, the process is quite efficient. The e-PAN (a digitally signed PDF version of your PAN card) is typically generated and sent to your registered email ID within 5-7 working days. The physical PAN card is then dispatched and usually arrives at your registered office address within 15-20 working days.

2. Is a registered partnership deed mandatory for a PAN card?

While registering your partnership deed with the Registrar of Firms adds an extra layer of legal validity, it is not mandatory for a PAN card application. A notarized partnership deed is also accepted as a valid proof of existence when you apply PAN card for partnership firm India. Ensure the deed is properly executed on stamp paper and notarized.

3. Do all partners need to sign the PAN application form?

No, it is not necessary for all partners to sign the application. The firm can designate one partner as the “authorized signatory” for this purpose. Only this single authorized partner needs to sign the application form and the final acknowledgment slip on behalf of the entire firm.

4. Can I make corrections to the PAN application after submission?

No, once you have submitted the online form and made the payment, you cannot edit the details. If you realize you’ve made a mistake, you must wait for the PAN to be allotted. After allotment, you can apply for a correction by submitting a ‘Change/Correction in PAN Data’ application. It is therefore crucial to review all details meticulously for accuracy before the final submission to avoid this hassle.

Partnership Firm PAN Card Application: Easy Steps!