• Can I change PAN number from individual to Firm name?

Sir,

Myself Chandan Samanta from Kolkata, one of my friend has civil contractor firm with PAN number registration with his own PAN number, has GST registration also. No turnover already generated, now he wants to change his PAN number with new registration of his contractor firm.

Is it possible?
Asked 2 years ago in Income Tax

Hello Sir,

 

Yes, it is possible.

 

 

 

Karishma Chhajer
CA, Jodhpur
2439 Answers
27 Consultations

5.0 on 5.0

Please re-frame your question.

 

When a person does any work as a proprietor his PAN is same as that of firm.

If he is going to establish new firm he needs to find new partners and form a partnership deed and register the firm and get new PAN.

 

As far as income tax is concerned for an individual doing business his PAN is used to register his firm.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
3875 Answers
51 Consultations

5.0 on 5.0

Hi Chandan,

 

Every Individual is allotted a single PAN number as per the laws of the country. There are two types of structure for a firm which are as follows:

 

Sole Proprietorship

In this , an individual uses his own PAN number and is considered as the sole owner/proprietor of the firm. This is the case which currently applies to your friend who is working as a civil contractor.

 

Partnership Firm

In this, two partners associate and form a separate legal entity. In this case, a new firm which is evolved on account of partnership gets a new PAN number in the name of the firm. Thus, the individual partner retain their PAN number and their PAN numbers have no link with the firm. Firm gets its own PAN number in this case.

 

Thus, an individual PAN is associated with the business only in sole proprietorship which cannot be changed. If he needs a new PAN number of the firm, he will have to form a partnership firm or a company.

 

Thanks

Damini

Damini Agarwal
CA, Bangalore
389 Answers
31 Consultations

5.0 on 5.0

Sir , If he is doing business as proprietor, using his PAN number. Where his business is done using his Trade name. But tax payment & GST registration is done by his individual name. In this case he can't change the name in his pan to business name. My advice is , if he is transacting with his Trade name with his individual PAN number, there is no issue. No need to change the Name in PAN. 

If he wants to change firm name in GST, apply for amandment in GST. Where he can change the trade name. With same PAN.

 

 

Shrinidhi Rao
CA, Udupi
38 Answers
1 Consultation

Not rated

Hello,

Your question is not clear in its intention.

An individual and its sole proprietorship firm have the same PAN, both are the same entity as per law. So this change is not possible.

While if you are looking to change the business constitution from individual to partnership, you will have to form a partnership firm and apply for a new PAN of the partnership firm.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2583 Answers
12 Consultations

5.0 on 5.0

Hi,

Yes it is possible. 

 

Thanks

Vivek Kumar Arora
CA, Delhi
4222 Answers
399 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

Yes, it is possible.

 

 

Payal Chhajed
CA, Mumbai
5131 Answers
185 Consultations

5.0 on 5.0

PAN is a separate tax identification for every tax payer. The tax payer is India has different status like - individual, firm, company, LLP etc. When you apply for a Pan you have to choose the identify against which this Pan is applied and also supporting documents are filed. 

Partnership firm is a separate tax payer and individual separate. Both are required to file tax return in their own capacity. If a pan is taken against a firm it cannot be transferred to individual.  Also a individual Pan cannot be transferred to firm. 

Jasmina Jain Shah
CA, Greater Mumbai
447 Answers
4 Consultations

5.0 on 5.0

Hello Sir, Greetings!!

As mentioned by you, if your Friend is having Sole Proprietorship business then he has to use his Personal PAN as it is Individual entity.

If he wants to change PAN so whether he is changing constitution of the Firm.Then he can apply for new plan.

 

Please free to contact me in case of any issues.

Bhagyashree Kankaria
CA, Pune
40 Answers
11 Consultations

5.0 on 5.0

Yes, he cancel the existing GST registeration and make a partnership firm, get its PAN and then apply for new GST registeration for  new Firm, but he cannot change his PAN if he wants to make a proprietorship firm again, as his own PAN will be used in that case.

Priyank Kumar
CA, Agra
63 Answers

5.0 on 5.0

Hi,

 

An individual can only have one PAN. There cannot be two PANs for an individual 

 

However, if he opens a separate partnership firm. Company or LLP, then that entity can have separate PAN.

 

But why do you need a separate PAN

Lakshita Bhandari
CA, Mumbai
5557 Answers
649 Consultations

5.0 on 5.0

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