Every business in India must have a pan card. However, here is information about pan card documents. Every tax payer living in India must have a pan card. The short form of the permanent account number is PAN. The vital document comprises of 10 characters. But,digits and alphabets make up the characters. Also, the income tax act of 1961 states the fundamentals of pan card. Besides, every cardholder has a unique number. Thus, tax payers get identified with ease. Companies, partners and individuals must own the card. In addition, the card gets used as an identity proof for various cases in India.
Are you running any corporate body in India? You must have a pan card. Besides, whether your business was registered abroad or in India, the law applies. Also, any person or business entity carrying out business with any Indian firm must have a pan card. In addition, any person who makes money out of India must have the card. Nevertheless, the law applies irrespective of the company being established or registered in India.
Business entities that must have a PAN card in India
- Cooperative societies.
- Foreign investors.
- Private limited companies.
- Sole proprietorship.
- Limited liability partnerships.
- Start-up businesses.
- Large, small-scale and micro companies.
- Single person company.
- Section 8 company,society or trusts.
Reasons why a company should have a pan card
Here are the reasons why a company should have a pan card:
- The card helps a business entity to get the tax registration number( TRN).
- Helps in filing income tax returns of a company.
- You must have a pan card,irrespective of the fact you are not eligible to paying taxes.
- According to the income tax act of 1961, the government of India made pan card a compulsory requirement for partnerships, companies and individuals businesses, alongside others.
- All business entities, whether registered in India or abroad must pay taxes for their businesses. Therefore, the government ends up increasing their tax rate, if they do not have pan cards.
- The income tax department uses pan card as a reference number to trace and collect your financial transactions. Therefore, every business must state its PAN card number on all documents showing their income tax and financial transactions.
- If any company or business entity does not have a pan card, the government fines them for withholding tax. However, the imposed fine rate might be over 30% of the entire invoice payment.
Pan card documents in India: registration process
- Visit the NSDL website and download form 49A, application form. For guidance in filling the form, read and follow all instrcuctions. Now fill the application form and ensure you have entered the required information. But, you must have a demand draft, in order to pay the pan card fees. Also, you must draw the draft in favour of ” NSDL-PAN”. Additionally, ensure you have entered the bank draft details. These includes number of demand draft,date of issue and name of issuing bank. But, you can leave the name and details of the officer assessing blank.
- Downoad and print your pan card application form. But, only after you are done to fill the form.
- Now sign your form. Besides, send the form alongside other supporting documents to any agent of PAN.
- Alternatively, you can send your application form alongside pan card documents directly to NSDL. In addition, you can visit the NSDL website and apply your pan card online.
- However, ensure to write your pan card application number on your notebook. The number helps in tracking down your application status. Additionally, note that the government takes approximately 5 weeks to issue and send your pan card to your address.
Pan card documents in India
- Trust deed copy.
- A copy of partnership deed.
- rent receipt.
- Voter identity card.
- Employer certificate.
- Ration card.
- Credit card.
- Depository account.
- Telephone bill.
- Electricity bill.
- Driving license.
- Water bill.
- Bank account.
- Credit card.
- Property tax assessment order.
- Depository account.
- school leaving certificate.
- Degree certificate from a recognized education institution.
- Matriculation certificate.
- Registration certificate from charity commissioner.
- Incorporation certificate copy from registrar of companies in India.
- Also, you need a copy of registration number certificate, from charity commissioner or any competent local authority.
- A copy of registration certificate from the registrar of companies. But, applies only for limited liability partnerships.
In case you are planning to run any business in India, you must have a pan card. However, for registration you need all required pan card documents. Nonetheless, if you have more questions about pan card documents, ensure to check our website, or contact us. In addition, you are free to share the article with others.
For more information, visit Company Vakil website.