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PAN No. in personal name, can use for proprietor

Rachana Gadage (Account Executive) (136 Points)

08 October 2007

Hi All,

Can a proprietor use his/her PAN No. ( which is in his/her personal name) for his/her proprietorship firm?

Is any rule that a properitor is required PAN No. compulsory?

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5 Replies

Ravikumar.G (Consultant) (18525 Points)
Replied 08 October 2007

No. They can use there personal PAN for proprietor concern. For TAN they have to obtain in respective concern name

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Anand (481 Points)
Replied 08 October 2007

The same PAN holds good because proprietary business is not a seperate assessee under the Income Tax Act. As per the IT Act under the definition of Assessee only individual comes and not Proprietary concern.

CA.Saibaburao Nanduri (Chartered Accountant) (3847 Points)
Replied 08 October 2007

Rachana Gadage !
There is no personal PAN as such. The person might have obtained PAN in his 'individual' status. The proprieter/ proprietress shall file his/her reutrn of income in the status of 'individual' only. Usage of PAN depends upon 'STATUS'.

P.M.Murugesan (Auditing) (20 Points)
Replied 05 August 2008

hai, good morning every body

Sunil (Trader) (2611 Points)
Replied 26 August 2009

Originally posted by :Rachana Gadage
"	Hi All, Can a proprietor use his/her PAN No. ( which is in his/her personal name) for his/her proprietorship firm? Is any rule that a properitor is required PAN No. compulsory?	"

The problem will now come up when PAN is compulsory for all deductees. Say if Pan No. is in name of Mr. ABC who is proprietor of XYZ Corp. If he issues bill in name of XYS Corp and quotes his PAN of Mr. ABC to the deductor, the database will not match when deductor makes payment and files the TDS returns. Therefore I think they will have to pass a law for all proprietorship concerns to change their businesses totheir individual names.