Central Board of Direct Taxes in the Official Gazette issued a notification regarding application of PAN in Form INC-7 for companies intending incorporation.  

Before issue of such notification, Form INC-7 along with DIR-12 shall be submitted to Ministry of Corporate Affairs within 60 days from the date of name approval. Form INC-7 is filed for Application for Incorporation of Company. After the incorporation of company, PAN shall be applied.

The notification issued provides modification in the Income Tax Rules, 1962. Extracts of such modifications are hereunder:

Rule 114 (1): In case of an applicant, being a company which has not been registered under the Companies Act, 2013 (18 of 2013), the application for allotment of a Permanent Account Number may be made in Form No. INC-7 specified under sub -section (1) of section 7 of the said Act for incorporation of the company.

Rule 114 (4): in the TABLE, in column (4), –

1. Against Sl. No. (1), for item (C) the following item shall be substituted, namely:-

Proof of date of birth — copy of the following documents if they bear the name, date, month and year of birth of the applicant, namely:

(a) birth certificate issued by the municipal authority or any office authorised to issue birth and death certificate by the Registrar of Birth and Deaths or the Indian Consulate as defined in clause (d) of subsection (1) of section 2 of the Citizenship Act, 1955 (57 of 1955); or

(b) pension payment order; or

(c) marriage certificate issued by the Registrar of Marriages; or

(d) matriculation certificate or mark sheet of recognised board; or

(e) passport; or

(f) driving licence; or

(g) domicile certificate issued by the Government; or

(h) aadhar card issued by the Unique Identification Authority of India; or

(i) elector’s photo identity card; or

(j) photo identity card issued by the Central Government or State Government or Central Public Sector Undertaking or State Public Sector Undertaking; or

(k) Central Government Health Service Scheme photo card or Ex-servicemen Contributory Health Scheme photo card; or

(l) affidavit sworn before a magistrate stating the date of birth.

2. Against Sl. No. 3, for the words “Copy of Certificate of Registration issued by the Registrar of Companies.”, the following shall be substituted, namely:-

(a) Copy of Certificate of Registration issued by the Registrar of Companies; or

(b) Corporate identity number allotted by the Registrar under section 7 of the Companies Act, 2013 (18 of 2013).

Rule 114A (1):

In case of an applicant, being a company which has not been registered under the Companies Act, 2013 (18 of 2013), the application for allotment of a tax deduction and collection account number may be made in Form No. INC-7 specified under sub-section (1) of section7 of the said Act for incorporation of the company.

With the coming of the above notification, burden of filing so many forms during incorporation shall surely be reduced. Companies intending to incorporate have raised their hope though MCA is still to modify the Form INC-7.

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