A Permanent Account Number (PAN) card is necessary for charitable organisations to make transactions and accept donations.
A PAN card, an identifying number used for tax purposes in India, is a ten-digit, one-of-a-kind alphanumeric number.
Every Indian citizen and entity, including nonprofit organisations, must have a PAN card. The Income Tax Department issues PAN cards, which are used as identity numbers for tax purposes. To file tax returns and undertake transactions, including accepting gifts, a PAN card is a necessity.
This article will go through the value of a PAN card for charitable organisations, eligibility requirements, paperwork needed, the application procedure, common application errors to avoid, processing times, and costs related to getting a PAN card.
Why are charitable institutions required to have PAN cards?
Since it acts as a special identifying number for tax purposes, a PAN card is an essential document for charity organisations. A PAN card is required to do transactions such as opening bank accounts, filing tax returns, and accepting donations.
A PAN card ensures the charitable institution's responsibility and helps to preserve openness in financial dealings.
PAN Card eligibility requirements for nonprofit organisations
You must fulfil the following requirements in order to be eligible for a PAN card for your nonprofit organisation:
- Registrar of Societies or Registrar of Trusts registration is required for the charity organisation.
- The nonprofit organisation must be active in India.
Documents needed to apply for a PAN Card for nonprofit organisations
You must provide the following paperwork to apply for a PAN card for your nonprofit organisation:
- a replica of the nonprofit organization's Certificate of Registration, which was granted by the Registrar of Societies or Registrar of Trusts.
- a duplicate of the trust deed or memorandum of association.
- a copy of the nonprofit organization's most recent income tax return.
- a duplicate of the nonprofit organization's proof of address, such as a bank statement, an electricity bill, or a telephone bill.
- a duplicate of the identity document used to verify the nonprofit organization's authorised signatory, such as a passport, voter identification card, or Aadhar card.
How to Apply for a PAN Card for Charitable Organizations: A Step-by-Step Guide
To apply for a PAN card for your nonprofit organisation, follow these steps:
- Visit the Income Tax Department's official website.
- Apply for a new PAN by selecting the "PAN" tab.
- Choose "Company" for the application category.
- Provide all required information, such as name, contacting information, and the incorporation date.
- Submit all required paperwork, including the Memorandum of Organization, Certificate of Registration, most recent tax return, residence evidence, and identity proof for the designated signatory.
- Use the online payment methods to pay the necessary costs.
- Send in your application.
common errors to avoid while applying for a PAN Card
The following typical errors must be avoided when requesting a PAN card for your nonprofit organisation:
- giving false information or documentation.
- not regularly updating the information.
- not renewing the PAN card by the deadline.
Processing time for PAN Card applications
It would take about 15-20 days for the application to be processed once you have submitted your PAN card request for your nonprofit organisation.
Depending on the Income Tax Department's workload, the timeframe could change.
PAN Card application fees for nonprofit organisations
A PAN card costs Rs. 1,000 to be obtained for a nonprofit organisation. Demand draughts, credit/debit cards, and internet banking can all be used to pay this fee online.
The significance of updating PAN Card data
It's crucial to keep the PAN card information for your nonprofit organisation current.
It is necessary to update the information with the Income Tax Department if anything changes, including the institution's name, address, or authorised signatory. Inaccurate information can result in fines and legal problems.
Conclusion
In order to maintain financial transparency, accept donations, file tax returns, and carry out other transactions, your charitable institution must obtain a PAN card.
For help applying for a PAN card for your charitable organisation, refer to the step-by-step instructions provided in this article.
To avoid any legal issues, keep in mind to regularly update your PAN card information.
FAQs
Describe the PAN card.
The Income Tax Department issues PAN cards, which are individual ten-digit alphanumeric numbers used for tax purposes.
Why is a PAN card necessary for nonprofit organisations?
A PAN card is crucial for charitable organisations because it acts as a special tax identification number and is needed for transactions, collecting donations, and filing tax returns.
How long does it take to process an application for a PAN card for a nonprofit organisation?
The processing time for a PAN card application from a charitable organisation is between 15 and 20 days.
What requirements must a charitable institution meet in order to qualify for a PAN card?
The charitable organisation must be operating in India and registered with the Registrar of Societies or Registrar of Trusts.
How much does it cost for a charitable institution to get a PAN card?
A PAN card costs Rs. 1,000 to be obtained for a nonprofit organisation.
