MCA Clarification on Fixing PAN Validation Error in Form ADT-1 for Sole Proprietor Auditors

The Ministry of Corporate Affairs (MCA) under the Government of India has clarified an important update regarding Form ADT-1. This form is used by companies to inform MCA about any appointment made to the role of auditor.

Sometimes, while filing this form, companies face a ‘PAN Validation Error’. This usually happens when they are appointing an auditor who runs their practice as a Sole Proprietorship firm.

To resolve this problem, the Ministry of Corporate Affairs (MCA) has suggested a simple solution:

At the time of filing Form ADT-1, you should choose the category of “Individual” instead of “Firm” if you as an auditor running a Sole Proprietorship firm. By selecting the “Individual” category, the system will be able to correctly verify the auditor’s PAN, and the form will be accepted without any mistakes.

This correction of the mistake will ensure smooth validation and successful submission of Form ADT-1.