What is a Permanent Account Number?

PAN or Permanent Account Number is a 10 digit alpha-numeric identity issued by the Income Tax Department of India. It is a unique account number allocated by the Income Tax Department, which is used to track and manage all the Income Tax assessee in India.

Although the PAN card application is voluntary, it must be obtained before engaging in certain transactions. For entering into a financial transaction exceeding a specified amount, quoting PAN is compulsory. Also, every business entity must apply for PAN card application within the 30 days of its formation or incorporation.

What is a Tax Account Number?

Tax Account Number is commonly referred as Tax Deduction Account Number or Tax Collection Account Number, or simply TAN. TAN registration leads to a generation of 10 digits alpha-numeric code that is issued by the Income Tax Department of India. As the name suggests, it is obtained by the person responsible for deduction or collection of tax at source (TDS or TCS). Businesses while deducting the salaries of employees must obtain and mention the number. Specified criteria to collect and deduct tax at source are already prescribed by the Government. Also, it is compulsory to quote TAN of the assessee in TDS/ TCS statements and challan for payment of TDS/ TCS.

Requirements of Tax Account Number

• Mandatory for deduction & collection of tax
• TDS Certificate and Filing

Documents Requirement for TAN Application

• Address Proof (Copy of Aadhar Card or other address proof)
• Applicants Information (Name, contact details and signature of the applicant)
• Certificate of Incorporation (Certificate of Incorporation in case of company and LLP)
• Agreement (Agreement in case of LLP and Partnership Firm)