Pan for a sole proprietorship

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Shyamal (Querist)
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02 August 2011 One of our clients has a PAN card for her individual name and another PAN card for her sole proprietorship. She has obtained the PAN for the proprietorship by quoting the business as a partnership firm erroneously. Please explain how to file her returns? Is there any remedy for this mistake?

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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02 August 2011 You have to get the FIRM PAN card cancelled.

PAN card for sole proprietors are issued on the name of the Individual and not on the name of the business.

While filing the returns, quote the PAN No. of the individual. The number must be having "P" as its 4th letter.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 August 2011 Try to 'deactivate' the PAN in the name of partnership firm by filing a detailed letter before the jurisdictional Income tax officer.

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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02 August 2011 yes,i am fully agreed with agarwal ji....

Shyamal

Shyamal (Querist)
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02 August 2011 Thanks all for the quick response. But for the time being is it advisable to file the same stating the status as an Association of Persons?? Please advice.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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02 August 2011 I would not advise you to do so. In my opinion you should file the same as a sole proprietorship by quoting the individual PAN No.

Shyamal

Shyamal (Querist)
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02 August 2011 Thanks madam. Will there be any consequences or proceedings against me if i do so? The tax has been deducted at source in the Firm's name and PAN and the deductor has issued Form 16-A for the Firm and not in the individual name and PAN.

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