How can a partner in a partnership firm take money in personal account if the firm has a PAN but no bank account?
We run a partnership firm with two partners (three of us in total), and currently have no employees. We operate as a software agency, building projects for clients.
Our firm has both a PAN and TAN. However, we have not yet opened a bank account in the firm’s name due to some delays, and it may take approximately two months to complete the process.
In the meantime, we have onboarded our first client, who is paying us ₹1.5 lakh per month. Since the firm does not have a bank account yet, the first payment was received in my personal account, and I distributed one-third of the amount to each partner.
The client has now requested our firm’s PAN, presumably for TDS and tax compliance purposes. We understand that any TDS deducted will be linked to the firm’s PAN rather than my personal PAN. However, given that the payments are currently being routed through my personal account, we would like guidance on how to manage this situation properly until the firm’s bank account is operational, and to ensure that we do not face any compliance or tax-related issues.