File two ITR's, one on personal name and second on firms name?

Please let me make it clearer for myself. For example, a person named Divya Mehra has a proprietorship firm named Professional Consultancy. She has a PAN card under her name, Divya Mehra, and under her firm's name, Professional Consultancy. There is no other source of income, and all the income she earns is through her firm.

Please let me know which of the following is correct:

1. She will have to file two ITRs, one under her personal name (Divya Mehra) and the second under her firm's name (Professional Consultancy).
2. She will have to file only one ITR, i.e., under her firm's name - Professional Consultancy.

Dear Akansha,

Please provide more details regarding this query. How many employees are engaged in that professional consultancy? The total income will be considered for filing the ITR.

Whatever she receives as her salary, honorarium, or compensation package from the professional consultancy, the ITR should be filed under her personal PAN card. As far as my concern, one does not need to have two PAN cards.

Furthermore, your friend can approach a good auditor who can guide and help properly in this matter.

She has 2 PAN cards: one in her own name and the second in the name of the firm she owns. Naturally, she has to file 2 returns for each PAN number. Why is there confusion? It should have been amply clear while filing the application for a Permanent Account Number. Or, was there any other motive for applying for PAN???

Warm regards.

Dear Akanksha,

It is surprising to note that Divya Mehra has a proprietorship firm named Professional Consultancy. She has a PAN card both in her name, Divya Mehra, and in her firm's name, Professional Consultancy.

I will tell you here how to read your PAN Card.

For example, AAAAA9999A

Here, two alpha characters prior to Numeric indicate the status and name of the person.

1. In the case of Divya Mehra, it should be AAAPM999A. This P stands for personal and M stands for Mehra. This P = Personal.

2. In the case of a Partnership Firm whose Name is Ganesh Enterprises, it should be AAAFG999A. F stands for Firm.

3. In the case of a Company whose Name is Idea Cellular, the PAN should be AAACI999A. C stands for Company.

4. In the case of a Trust whose Name is Balaji Society, the PAN should be AAATBA. T stands for Trust.

If her firm is Proprietary, then she cannot get any PAN Card in the name of the firm. It is always Individual, i.e., Proprietary. I suggest you please verify both the PAN Numbers.

Also, Akanksha, please check the same with your family members' PAN CARD. It should be AAAPM999A, i.e., A can be any alphabet, and 9 can be any number, but PM is constant with all.

Coming to the answer portion, she has to file her Income Tax Returns in her individual capacity, and all income should be shown there only under one and only one IT Return.

I hope the matter is clear to you.

Ramakant

Dear Ramakant ji,

Someone told me that you can obtain a PAN number in the name of your proprietary firm. I have also come across several advertisements claiming that a PAN card can be issued in the name of the proprietor. However, in my understanding, it is not mandatory to have a separate PAN for a proprietary firm. We need to confirm this information.

I have a proprietary firm with no separate PAN in its name.

Thank you.