How to Apply for PAN Card for NGO & Charitable Trusts?

Introduction

In India, the issuance of a Permanent Account Number (PAN) card is a crucial requirement for individuals and entities alike. For trusts and charitable organizations, obtaining a PAN card is essential not only for legal compliance but also for financial transparency. This article will guide you through the process of PAN card registration for NGO and charitable trusts.

PAN Card Application for Charitable Trust

All charitable organizations may exist as non-profit companies, societies, or trusts. However, the structure or management is not the essence of the charitable organization. It is the objectives that distinguish a charitable organization from a business organization. In order to apply for a Permanent Account Number card for a charitable trust, the following documents are required:

• Copy of trust deed or copy of the certificate of registration number issued by Charity Commissioner
• Copy of registration certificate issued by the Registrar of Companies or Registrar of Firms and Societies
• Copy of the latest income tax return
• Copy of the resolution of the managing body of the trust authorizing the applicant to apply for PAN
• Copy of the PAN card of the person responsible for the management of the trust.

The fourth character of PAN represents the status of the PAN holder. A trust is represented by the character ‘T’ (E.g. ALWTG5809L). The charges for obtaining a PAN card for a charitable trust are the same as those for an individual PAN card application.

PAN Card Application for an NGO

A non-governmental organization (NGO) can apply for a PAN card by submitting an application form along with supporting documents to the Income Tax Department. The application form can be downloaded from the official website of the Income Tax Department. The authorized representative of the NGO must make the application on behalf of the NGO. The application process is similar to that of an individual or HUF PAN card, but there are some additional requirements that need to be fulfilled:

• Copy of the registration certificate issued by the Registrar of Companies or Registrar of Firms and Societies.
• Copy of the latest income tax return.
• Copy of the resolution of the managing body of the NGO authorizing the applicant to apply for PAN.
• Copy of the PAN card of the person responsible for the management of the NGO.

After completing the application form and uploading the required documents, pay for the PAN card application fee. You will then receive an acknowledgment number that you can use to track the status of your application. It typically takes around 15-20 business days for the PAN card to be issued and delivered.

How to Apply for PAN Card for NGO & Charitable Trusts?

The process of applying for a PAN card for NGO & charitable trusts is similar to that of an individual PAN card application. The following are the steps involved in applying for a new PAN application:

1. Visit the official website of NSDL eGov.
2. Select the ‘New PAN – Indian Citizen (Form 49A)’ option.
3. Fill in the required details such as name, date of birth, and contact information.
4. Upload the required documents such as proof of identity, proof of address, and proof of date of birth.
5. Pay for the PAN card application fee.
6. Submit the application form.

It is important to note that the Income Tax Department NEVER asks for your PIN numbers, passwords, or similar access information for credit cards, banks, or other financial accounts through e-mail. Taxpayers are advised NOT to respond to such e-mails and NOT to share information relating to their credit card, bank, and other financial accounts. 

Why is a PAN Card Necessary for NGO & Charitable Trusts? 

Here are some reasons why having a new PAN card is essential for NGO & charitable trusts:

1. Tax Deduction and Exemptions: To avail of tax benefits and exemptions, trusts and charitable organizations must possess a PAN card. It is required when filing their annual income tax returns.
2. Opening Bank Accounts: A PAN card is often mandatory when opening bank accounts, making it vital for receiving donations and managing funds.
3. Transparency: A PAN card enhances financial transparency and accountability, which is crucial when dealing with public donations and government grants.

Conclusion

In conclusion, obtaining a Permanent Account Number card for trust and charitable organizations is a simple process that requires the submission of the required documents and payment of the application fee. The process of applying for a new Permanent Account Number application is similar to that of an individual PAN card application. It is important to ensure that the required documents are submitted along with the application form to avoid any delays in the issuance of the PAN card.

Suggested Read :

Online CSR Registration for NGO

Guide for NGO Darpan Registration

Legal compliance for NGO

Difference Between NGO and NPO

Types of Trusts in India