PAN Registration for Businesses Major Changes from April 2026

Complete Guide for Companies, LLPs, Trusts & Other Entities

Executive Summary: What's New for Business PAN Applications

• New Forms Effective April 2026: Forms 94 (Indian Entities) and 96 (Foreign Entities) replace old Forms 49A/49AA – using old forms now results in automatic rejection

• Mandatory for All Businesses: Businesses with turnover exceeding ₹5 lakh must obtain PAN; all entities opening bank accounts require PAN

• Digital Signature Certificate (DSC) Required: Authorized signatories must have DSC for online filing

• Faster Processing: Paperless online applications (e-KYC/e-Sign) processed in 3-5 working days

• Higher Compliance Requirements: Stricter documentation including Certificate of Incorporation, Board Resolutions, and MOA/AOA

• Penalty for non-compliance: ₹10,000 for holding multiple PANs; higher TDS at 20% for non-quotation

• Professional Support: For error-free business PAN application and compliance management, expert guidance is available at Taxoreo (www.taxoreo.com) or via WhatsApp at 9404088555

Eligibility Criteria: Which Business Entities Can Apply for PAN

Eligible Business Entities:

Corporate Structures:

• Companies (Private Limited, Public Limited, One-Person Companies)
• Limited Liability Partnerships (LLPs)
• Partnership Firms (Registered and Unregistered)

Non-Profit & Trust Structures:

• Trusts (Private, Public, Religious, Charitable)
• Societies and Clubs
• Hindu Undivided Families (HUFs)

Other Entities:

• Local Authorities (Municipalities, Panchayats)
• Artificial Juridical Persons
• Association of Persons (AOPs)
• Body of Individuals (BOIs)

Business Use Cases Requiring PAN:

• Opening a current bank account (mandatory for all banks)
• Registering for GST (mandatory if turnover exceeds ₹20 lakh, or ₹10 lakh for special category states)
• Filing income tax returns (mandatory for all business entities)
• TDS/TCS deduction and collection (mandatory for deductors/collectors)
• Purchasing or selling immovable property valued above ₹20 lakh
• Making cash deposits exceeding ₹10 lakh in a financial year
• Applying for business loans or credit facilities
• Import-export operations (IEC code requires PAN)
• Participating in government tenders
• Hiring employees and processing payroll

Who Cannot Apply:

• Entities with cancelled or surrendered PAN (must apply for revival, not fresh application)
• Applicants providing false or forged documents (legal consequences apply)
• Entities already holding a valid PAN (duplicate applications are prohibited)
• Proprietorships applying separately (must use proprietor's personal PAN)

Validity Period and Surrender Requirements for Business Entities

Time Period	Validity Status	Required Action	Key Dates
Upon Issuance	Valid for lifetime	No renewal required	From date of allotment
Change in Details	Remains valid	File correction request	Within 30 days of change
Loss/Damage	Remains valid	Apply for duplicate PAN	Immediately upon discovery
Dissolution of Entity	Must be surrendered	File surrender application	Within 60 days of dissolution

Critical Compliance Warning for Businesses

Failure to obtain, maintain, or quote PAN in required transactions carries serious consequences:

Financial Implications:

• Higher TDS Deduction: If you don't provide PAN to banks or payers, TDS will be deducted at 20% (or the applicable rate, whichever is higher) instead of normal rates
• Bank Account Restrictions: Banks may freeze accounts or reject high-value transactions without PAN
• GST Registration Blocked: Cannot register for GST without PAN
• Penalty under Section 272B: ₹10,000 for holding multiple PANs or failing to comply with PAN provisions
• TDS Return Rejection: TDS returns filed without PAN are rejected, attracting penalty under Section 272A (₹100/day)

Compliance Risks with Specific Dates:

1. March 31, 2026 Deadline Passed: Old Forms 49A/49AA are no longer accepted. Using them now results in automatic rejection.
2. June 30, 2026: Link PAN with Aadhaar of authorized signatory if applicable to avoid compliance issues.
3. September 30, 2026: Complete any pending PAN corrections to ensure entity name matches registration documents.
4. December 31, 2026: Review all business accounts, GST registrations, and financial instruments to ensure PAN is updated across all platforms.

What Happens If You Don't Act:

• Business transactions may be blocked or rejected
• Higher TDS deductions impact cash flow
• GST registration and filing become impossible
• Bank accounts may be frozen for non-compliance
• Loan applications rejected
• Government tenders cannot be participated in

Step-by-Step Application Process for Business Entities

Before Starting Your Application, Ensure You Have:

For Companies/LLPs:

• Certificate of Incorporation
• PAN of authorized signatory
• Registered office address proof
• Board resolution authorizing signatory
• Digital Signature Certificate (DSC) of authorized person
• Memorandum and Articles of Association (for companies)
• LLP Agreement (for LLPs)

For Partnership Firms:

• Partnership deed (registered or unregistered)
• PAN of authorized partner
• Registered office address proof
• Authorization letter from partners

For Trusts/Societies:

• Trust deed or Society registration certificate
• PAN of authorized trustee/office bearer
• Address proof of trust/society
• List of trustees/governing body members
• Resolution authorizing signatory

For HUFs:

• HUF deed or affidavit
• PAN of Karta (head of family)
• Address proof
• List of coparceners

Detailed Application Steps

Step 1: Access the Official Portal

Navigation Path:

• Visit Protean e-Gov Portal OR UTIITSL Portal OR Income Tax e-Filing Portal

• For Taxoreo Assisted Applications: Visit www.taxoreo.com or WhatsApp 9404088555 for guided application support with document verification and error-free submission.

Step 2: Select the Correct Form

Form Selection for Business Entities:

Applicant Type	Form Number	Select This If...
Indian Company/LLP/Trust/Partnership	Form 94	You represent an Indian entity
Foreign Company/Entity	Form 96	You represent a foreign company/entity

Critical: Do NOT select Forms 49A or 49AA – these are obsolete from April 1, 2026.

Step 3: Fill Entity Details

For Companies/LLPs (Form 94/96):

Sub-step 3.1: Entity Details

• Legal Name: Enter exactly as per Certificate of Incorporation
• Abbreviated Name: Optional
• Date of Incorporation/Registration: DD/MM/YYYY format
• Country of Incorporation: Select India or relevant country
• Entity Type: Select from dropdown (Company/LLP/Partnership/Trust/Society/HUF)

Sub-step 3.2: Registered Office

• Complete address with PIN code
• State and District selection from dropdown
• Email and phone number of authorized signatories
• Office address proof details

Sub-step 3.3: Authorized Signatory Details

• Name of authorized person (as per Board Resolution)
• Designation (Director/Partner/Trustee/Authorized Signatory)
• PAN of authorized signatory
• Contact details (mobile and email)

For Trusts/Societies:

• Name of trust/society as per registration certificate
• Registration number and date
• Address of registered office
• Details of trustees/governing body members
• Authorized signatory details

For HUFs:

• Name of HUF
• Details of Karta (head of family)
• PAN of Karta
• Address of HUF

Step 4: Upload Supporting Documents

Document Upload Specifications:

For Companies:

• Certificate of Incorporation (PDF, max 500 KB)
• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Board Resolution authorizing signatory (PDF)
• PAN and Aadhaar of authorized signatory
• Registered office address proof (electricity bill, rent agreement, NOC)
• DSC of authorized signatory

For LLPs:

• Certificate of Incorporation
• LLP Agreement
• PAN and Aadhaar of designated partner
• Registered office address proof
• Authorization document

For Partnership Firms:

• Partnership deed
• PAN and Aadhaar of authorized partner
• Registered office address proof
• Authorization letter from all partners

For Trusts:

• Trust deed
• Registration certificate (if registered)
• PAN and Aadhaar of authorized trustee
• Address proof of trust
• List of trustees

For Societies:

• Society registration certificate
• Memorandum and Rules & Regulations
• PAN and Aadhaar of authorized office bearer
• Address proof
• Governing body resolution

For HUFs:

• HUF deed or affidavit
• PAN and Aadhaar of Karta
• Address proof
• List of coparceners

General Document Requirements:

• Format: PDF/JPEG/PNG
• Maximum size: 500 KB per document
• Clear, legible scan
• All four corners visible
• No glare or shadows

For Taxoreo Document Verification: Our experts at www.taxoreo.com can review your documents before submission to prevent rejection. Contact WhatsApp 9404088555.

Step 5: Select Application Type

Choose from:

• New PAN – Indian Entity (Form 94)
• New PAN – Foreign Entity (Form 96)
• Changes/Correction in PAN Data (if you already have PAN)

Step 6: Payment of Fees

Fee Structure (Effective April 2026) for Business Entities:

Service Type	Processing Time
Physical PAN card (Indian address)	15-20 working days
Physical PAN card (Foreign address)	20-30 working days
e-PAN only (no physical card)	24-48 hours
Application at PAN Centre	15-20 working days
Paperless online (e-KYC/e-Sign)	3-5 working days

Note: Fees are the same for individuals and entities. However, businesses typically require physical PAN cards for banking and compliance purposes.

Payment Methods:

• Credit/Debit Card (Visa, Mastercard, RuPay)
• Net Banking (all major banks)
• UPI (Google Pay, PhonePe, Paytm, BHIM)
• Demand Draft (for offline applications)

Step 7: Acknowledgment and Tracking

Post-Submission:

• You will receive a 15-digit acknowledgment number
• Save this number for tracking
• Confirmation email and SMS sent to registered contact details of authorized signatory
• Download acknowledgment PDF for records
• Track status on portal using acknowledgment number

Documentation Requirements: Myth vs Reality for Businesses

Document	Required Upload?	Purpose	Reality Check
Certificate of Incorporation	Yes (Mandatory for Companies/LLPs)	Proof of legal existence	Cannot apply without this for companies/LLPs
Partnership Deed	Yes (Mandatory for Partnerships)	Proof of partnership	Required for all partnership firms
Trust Deed	Yes (Mandatory for Trusts)	Proof of trust existence	Required for all trusts
Board Resolution	Yes (Mandatory for Companies)	Authorization of signatory	Must be recent and signed by directors
MOA/AOA	Yes (Mandatory for Companies)	Governing documents	Required for company applications
LLP Agreement	Yes (Mandatory for LLPs)	Governing document	Required for LLP applications
PAN of Authorized Signatory	Yes (Mandatory)	Identity verification	Must be valid and active
Address Proof	Yes (Mandatory)	Registered office verification	Not older than 2 months
DSC	Yes (Mandatory for online filing)	Digital authentication	Class 2 or Class 3 DSC required
Bank Statement	No	Not required	Common misconception – not needed
ITR Acknowledgment	No	Not required	Not needed for fresh PAN applications
GST Certificate	No	Not required	Not needed for PAN application

 

Legal Conditions and Compliance Timelines for Businesses

Requirement	Timeline/Deadline	Consequence of Default	Penalty/Interest
Quoting PAN in ITR	Due date of filing (July 31/Oct 31/Nov 30)	Return considered defective	Notice under Section 139(9), possible penalty
Quoting PAN in TDS Returns	Quarterly due dates	TDS return rejected	Penalty under Section 272A (₹100/day)
Informing PAN to Bank	At account opening	Account may be frozen	TDS @ 20% on interest income
Updating Address Change	Within 30 days of change	Notices sent to old address	Missed communications, penalties
Surrendering Duplicate PAN	Immediately upon discovery	Penalty for holding multiple PANs	₹10,000 under Section 272B
Reporting PAN Loss	Immediately	Risk of misuse	Liability for fraudulent transactions
PAN in GST Registration	At time of GST application	GST registration rejected	Cannot conduct taxable supplies
PAN in Import-Export Code	At time of IEC application	IEC application rejected	Cannot import/export goods

For PAN Verification and Correction Services: Taxoreo's team can help you check for duplicate PANs and guide surrender procedures. Contact www.taxoreo.com or WhatsApp 9404088555.

Frequently Asked Questions (FAQs) for Businesses

Q1: Does a proprietorship need a separate PAN?

Answer: No. A proprietorship does not require a separate PAN. The proprietor's personal PAN is used for the business.

Important Points:

• Proprietorship is not a separate legal entity from the proprietor
• Use the same PAN for personal and business transactions
• Quote proprietor's PAN in all business documents, bank accounts, and GST registration
• ITR filing: File ITR-3 or ITR-4 using proprietor's PAN

Common Mistake: Many proprietors mistakenly apply for a separate PAN in the business name. This is illegal and attracts ₹10,000 penalty under Section 272B.

Q2: What if I made a mistake in my business PAN application after submission?

Answer: The correction process depends on the application status:

If status is "Under Processing":

• You cannot edit the application
• Wait for rejection, then reapply with correct details
• No refund of fees

If status is "PAN Allotted":

• File for "Changes/Correction in PAN Data" using the same portal
• Fee: ₹110 for Indian address, ₹989 for foreign address
• Processing time: 15-20 working days
• Use Form 94 (correction) for entities

Critical Errors Requiring Immediate Correction:

• Legal name of entity
• Date of incorporation/registration
• Registered office address
• Authorized signatory details

Q3: Can a foreign company apply for PAN? Which form should they use?

Answer: Yes, foreign companies engaging in business in India or having Indian income sources must obtain PAN.

Form Selection:

• Form 96: For foreign companies/entities
• Form 94: Only for Indian entities

Additional Requirements for Foreign Entities:

• Certificate of Incorporation from country of origin (apostilled/notarized)
• Memorandum and Articles of Association
• Board Resolution authorizing signatory
• PAN and passport of authorized signatory in India
• Registered office address proof in India
• Business activities in India description

Processing Time: 20-30 days

Q4: My business PAN application has been pending for 45 days. What should I do?

Answer: Normal processing time is 15-20 working days. If it exceeds 30 days:

Step-by-Step Escalation:

1. Check Application Status: Use acknowledgment number on portal.
2. Verify Email/SMS: Look for any communication requesting documents.
3. Review Documents: Ensure all uploaded documents are clear and complete.
4. Raise Grievance:

• Protean Portal: → Customer Care → Grievance.
• UTIITSL portal: → Contact Us → Grievance Redressal.

5. Email:

• Protean: tininfo@proteantech.in.
• UTIITSL: utiitsl@utiitsl.com.

6. Escalate to Income Tax Department: If no response in 7 days, email nsdl@incometax.gov.in.

Deemed Approval: If no response within 30 days, PAN is deemed approved. Check your email for PAN allotment.

Q5: Is PAN mandatory for small businesses with turnover below ₹5 lakh?

Answer: Technically, PAN is mandatory for all businesses regardless of turnover if they:

• Open a current bank account (all banks require PAN).
• Register for GST (mandatory if turnover exceeds ₹20 lakh, or ₹10 lakh for special category states).
• Engage in any transaction requiring PAN quotation (property purchase, vehicle purchase, etc.).

Practical Reality: Even if your turnover is ₹2-3 lakh, you'll need PAN for:

• Business bank account (mandatory KYC).
• Receiving payments above ₹50,000 (customers may ask for PAN).
• Filing ITR (even if nil income, recommended for compliance).
• Future business expansion.
• GST registration when turnover increases.

Q6: Can an HUF apply for PAN? What documents are needed?.

Answer: Yes, HUF (Hindu Undivided Family) is a separate legal entity and must have its own PAN, separate from the Karta's personal PAN.

Required Documents:

• HUF deed or affidavit (on stamp paper).
• PAN and Aadhaar of Karta (head of family).
• Address proof of HUF.
• List of coparceners (family members).
• Photograph of Karta.
• Signature of Karta.

Application Process:

• Use Form 94 (Indian entity).
• Select "HUF" as entity type.
• Enter HUF name (e.g., "Rajesh Kumar HUF").
• Provide Karta's details as authorized signatory.
• HUF will receive separate PAN.

Important: HUF files separate ITR (ITR-2 or ITR-3) and has separate tax liability from the Karta.

Q7: What happens if we don't quote PAN in TDS returns?

Answer: Non-quotation of PAN in TDS returns has serious consequences:

Immediate Consequences:

1. TDS Return Rejection: The return will be rejected by the TIN-NSDL system.
2. Penalty under Section 272A: ₹100 per day for each day of default.
3. Higher TDS Deduction: Deductee's TDS will be calculated at 20% instead of applicable rate.
4. Credit Not Given: Deductees won't get TDS credit in their Form 26AS.
5. Notice from IT Department: Both deductor and deductee may receive notices.

Example Impact:

• Salary paid: ₹10,00,000.
• Normal TDS rate: 10% = ₹1,00,000.
• Without PAN: TDS @ 20% = ₹2,00,000.
• Excess deduction: ₹1,00,000 blocked until PAN is provided.

Compliance Solution:

• Always collect PAN from all payees before making payments.
• Verify PAN validity on Income Tax e-Filing portal.
• Update PAN details immediately if changed.
• File TDS returns with accurate PAN information.

For TDS Compliance Support: Taxoreo provides end-to-end TDS compliance services including PAN verification and return filing. Visit www.taxoreo.com or WhatsApp 9404088555.

Q8: Can we have multiple PANs for different business verticals?

Answer: Absolutely NOT. One legal entity can have only one PAN, regardless of the number of business verticals or activities.

Legal Position:

• Section 139A: One entity, one PAN.
• Section 272B: Penalty of ₹10,000 for holding multiple PANs.
• Prosecution: Possible imprisonment up to 7 years for wilful evasion.

Common Misconceptions:

• "We need separate PAN for manufacturing and trading" Wrong. Same entity, same PAN.
• "We got a new PAN for our new branch" Wrong. Branches use same PAN as head office.
• "We need separate PAN for each GST registration" Wrong. Multiple GSTINs can use same PAN.

Correct Approach:

• Single Company with Multiple Businesses: Same PAN for all activities.
• Company with Branches: Same PAN for all branches.
• Company with Subsidiaries: Different PANs (each subsidiary is separate legal entity).
• Proprietor with Multiple Businesses: Same PAN (proprietor's personal PAN).

If You Have Multiple PANs:

1. Identify which PAN to retain (usually the oldest or most used).
2. File surrender application for duplicate PANs using Form 49A (correction).
3. Quote retained PAN in all future transactions.
4. Inform banks, GST authorities, and other entities of correct PAN.
5. Update PAN in all registrations and compliances.

Get Expert Help with Your Business PAN Application

Navigating PAN registration for business entities involves complex documentation and compliance requirements. Avoid costly mistakes and ensure seamless approval with expert assistance.

Taxoreo's Business PAN Services:

• New PAN application for Companies, LLPs, Partnerships, Trusts, Societies, and HUFs (Forms 94 & 96).
• Document preparation and verification (Board Resolutions, MOA/AOA, Partnership Deeds).
• Digital Signature Certificate (DSC) procurement.
• PAN correction and updates for business entities.
• Duplicate PAN application for lost cards.
• Surrender of duplicate PANs.
• Foreign company PAN application support.
• PAN verification and compliance audit.
• Integration with GST, TDS, and other compliance services.

Why Choose Taxoreo for Business PAN:

• Expert team of CAs, CSs, and compliance specialists.
• 99% first-time approval rate.
• End-to-end document preparation and filing.
• Real-time application tracking.
• Post-PAN compliance support (GST, TDS, ITR).
• Dedicated relationship manager.

Contact Taxoreo Today:

• www.taxoreo.com
• WhatsApp: 9404088555.
• Expert guidance for error-free business PAN compliance.