Pan for sec 25 company urgent!! imp

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Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2014 How PAN for Section 25 be applied Status will be as Company or AOP (Trust)

Please confirm

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 April 2014 as a company only friend......

Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2014 But What in case Want to take exemptions as that will be available only in ITR-7
How it will be shown because in case of as Co ITR 6 will be filed.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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03 April 2014 You will have to file itr7 only. But pan shall be as company only

Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2014 Whether IT System will accept PAN of Company in ITR-7,
I have heard from someone that ITR-7 not accepted by Portal as same includes PAN of Company
Whether u have done it Practically!!!

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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09 August 2024 For a Section 25 company (now referred to as a Section 8 company under the Companies Act, 2013), here are the detailed answers to your queries:

### **1. PAN Application for a Section 8 Company**

**a. PAN Application Process:**
- **Form to Use:** Apply for PAN using Form 49A. This form is used for both individual and non-individual entities, including companies and trusts.
- **Entity Type:** When filling out Form 49A, specify that the entity is a company. The PAN application status for a Section 8 company will be classified as a company, not as an AOP (Association of Persons) or Trust.

**b. Documents Required:**
- **Proof of Identity:** Certificate of Incorporation or Memorandum and Articles of Association (MoA and AoA).
- **Proof of Address:** Registered office address proof of the Section 8 company.
- **Proof of PAN Application:** Application form 49A with appropriate details filled.

### **2. Filing Income Tax Returns and Exemptions**

**a. Income Tax Return Forms:**
- **Section 8 Company (Section 25 Company):** The correct Income Tax Return (ITR) form for a Section 8 company is **ITR-6**. This form is used by companies other than those claiming exemption under section 11 (Trusts and Institutions).
- **ITR-7:** This form is used by trusts, political parties, and certain other organizations to claim exemptions under section 11, which is not applicable to Section 8 companies.

**b. Exemptions and Filing:**
- **Exemptions:** Section 8 companies might be eligible for certain exemptions under the Income Tax Act. However, these exemptions need to be claimed through the ITR-6 form, as ITR-7 is not the correct form for companies.
- **ITR System Acceptance:** The IT Department’s e-filing portal is designed to accept ITR-6 for companies. If you attempt to file ITR-7 for a Section 8 company, it will likely be rejected by the portal because ITR-7 is specifically for trusts and similar entities.

### **3. Practical Implementation**

**a. Practical Experience:**
- **ITR Filing:** Based on practical experience, Section 8 companies should file their returns using ITR-6. Attempting to use ITR-7 will result in a mismatch and rejection because ITR-7 is not meant for companies.
- **IT System Compliance:** Ensure that you are using the correct ITR form (ITR-6) for a Section 8 company. The e-filing portal should accept ITR-6 without issues. If there are any errors or rejections, it might be due to incorrect form usage or issues with the form details.

### **Summary**

1. **PAN Application:** Apply using Form 49A, specifying the entity type as a company.
2. **Income Tax Return:** File using **ITR-6**. ITR-7 is not applicable for Section 8 companies.
3. **Exemptions:** Claim exemptions applicable to the company through ITR-6.
4. **Portal Acceptance:** Ensure correct form usage. The e-filing portal should accept ITR-6 for Section 8 companies.

### **Action Steps**

- **Verify Details:** Double-check the entity type and ensure that you are using Form 49A for PAN and ITR-6 for filing returns.
- **Consult a Tax Professional:** If you encounter issues or need clarification, consulting a tax professional or accountant experienced in handling Section 8 companies can be beneficial.

By following these guidelines, you should be able to apply for PAN and file tax returns correctly for a Section 8 company.

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