As per the Income Tax Act 1961, it is mandatory for every private limited company to acquire a valid PAN card number after registering with the registrar of companies.
Permanent Account Number(PAN) is a distinctive ten-digit alphanumeric number that is issued by the Income Tax department on the application made by any person. PAN card number enables the department to link every transaction of the PAN card holder with the department. It basically assists in tracing the multiple transactions like Tax payments, TDS/TCS credits, returns of various wealth tax/income Tax etc.
As per the Income Tax 1961, it is mandatory for individuals and any form of entity to provide PAN details while the payment of counterpart in India. Thus any person or business entity who fails to comply with the regulation made will be liable to pay the penalty of concealing tax which can be at the rate of more than 30% of the total invoiced payment i.e. the government will deduct tax at the highest rate possible.
It is very crucial to obtain a PAN card number for the private limited company as having a PAN will grant benefits while paying the invoices, income tax returns and remittances.
Following documents are required to be submitted by the private limited company in order to obtain a PAN card number-
1. Anyone of the following documents as an ID proof:
• An authenticated copy of the Certificate of Incorporation.
• An authenticated copy of the Business Registration Certificate
• An authenticated copy of the Articles of incorporation.
2. Submit the following as Address proof:
• An authenticated copy of the company bank statement bearing the company name and full current address for communication. The PAN card will be delivered to this address.
Process of obtaining a valid Pan Card Number
The PAN card for the private limited company can be obtained either by applying through online mode or by offline mode. The steps to be followed for obtaining PAN card number as follows-
1. An application for PAN card can be made at the online portal of the NSDL.
2. Application form 49A can be downloaded from the website of the NSDL.
3. The necessary details shall be filled in the form.
4. You need to acquire bank draft for the payment of the pan card fees.
5. After completing the form it must be downloaded and a print of it shall be obtained.
6. The form is required to be sent to any PAN agent or broker after it has been signed by the authorized director on behalf of the company.
7. Any person who does not prefer online services can directly send the form to any NSDL processing centers in India.
8. The PAN card number can be noted down by the applicant in order to track down the status of his application.
9. The time taken in obtaining the PAN card number can vary from 15 days to 5 weeks.
One important thing to be noted here is that the company is required to authorize one of its directors to process the permanent account number on behalf of the company i.e. the authorized director will sign the PAN registration form on behalf of the company.