ITR Filing 2019-20: Many taxpayers could be facing difficulty in filing the ITR for the assessment year 2019-20. While there may be different kinds of problems, one is related to the furnishing of the PAN of companies in which the taxpayer could be holding a share or could have held the share during the assessment year 2018-19. Several investors get shares allotted during IPOs which they hold for long. Some of those companies either go bust and the process of receiving the annual reports stops. The new ITR forms require one to list out the companies along with the PAN of the company. “In the case of taxpayer holding directorship and investments in unlisted equities, it is compulsory to quote ‘PAN’ of the company in which you have held directorship or unlisted equity investments at any time during the FY 2018-19, among other details,” says Archit Gupta, Founder & CEO ClearTax.
To ease the taxpayer’s woes, the income tax department has recently come out with a clarification – “In such cases, PAN of the company may be furnished if it is available. In case PAN of the delisted company cannot be obtained, you may enter a default value in place of PAN, as “NNNNN0000N”. However, if one still wants to get the PAN, here are the ways to find it.
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Depending on the source of income, one’s own status and the nature of shares held, the choice of the ITR form will differ. “In a case where the taxpayer is the director of a company, the PAN of such company should be entered in the income tax form ITR-2 and ITR-3 while in a case where the taxpayer is a shareholder of an unlisted company, the PAN of such company is to be entered in ITR-2, ITR-3, ITR-5 and ITR-7,”says Gupta.
In the case of an investment held in equity shares of an unlisted company at any time during the FY 2018-19, according to Gupta, the below details have to be mandatorily given:
1. Name of the company
2. PAN of the company
3. Opening balance – Number of shares held and the cost of acquisition
4. Shares acquired during the year – Number of shares, date of purchase or subscription, face value per share, issue price per share (fresh issue), the purchase price per share (in case of purchase from existing shareholder)
5. Shares transferred during the year – Number of shares and sale consideration
6. Closing balance – Number of shares and cost of acquisition
PAN number of unlisted companies – Difficulties
However, sourcing the PAN especially in the case of companies which have got liquidated etc at times become difficult. “Under the facility provided by the Income tax department, a user is able to know/verify the Permanent Account Number (PAN). This facility is referred to as ‘PAN Verification’ or ‘Know Your PAN’. However, for using this facility, a user should have the PAN of the company, the name and date of incorporation,” says Gupta.
How can I find PAN of a company
Alternatively, there are two ways to find the PAN of unlisted companies – either through the Income Tax India e-filing website or using the GSTIN (Goods and Service Tax registration number) of the company. On the Income Tax India e-filing website, the steps are:
- On the Income Tax India e-filing website, on the left panel is a link for ‘Know Your TAN’.
- On clicking it, one will have to enter a company name and the name of the State where the registered office of the company is/was located.
- To get address, you can search online for the company’s registered office’.
- You need to enter the State name, company name and your own mobile number.
- You will get one or more names of companies. Click on each to confirm that it is which you are looking for. Now, cross-check the address to confirm.
- Result: PAN and other details will be shown to you.
“In case you know the GSTIN (Goods and Service Tax registration number), you can locate the PAN from the GSTIN of the taxpayer. GSTIN is a PAN-based number. In the GSTIN, the 10 digit PAN of the taxpayer is embedded from the 3rd digit to the 12th digit,” informs Gupta.