Two of the most important documents for taxpayers and tax-collectors in India are the Permanent Account Number (PAN) and the Tax Deduction and Collection Account Number (TAN).
While PAN is issued to individuals and organizations which have to pay taxes, TAN is for businesses and organizations that deduct/collect taxes at source.
Here, we explain the difference between the two.
What is PAN card?
Permanent Account Number (PAN) is a unique, ten-digit alphanumeric identity issued by the Income Tax Department to all individuals as well as organizations which pay taxes.
PAN facilitates instrumental financial transactions such as tax payments, entering certain financial contracts, making larger cash deposits, applying for credit/debit cards, filing I-T returns, among others.
It also serves as a government-verified proof of identity.
Next, click on 'Online Application for TAN (Form 49B).'
Select the category of deductors from the drop-down menu, and click on 'Select' button.
Fill out all the required details in the form.
Finally, after making the payment, an acknowledgement slip will be generated.
Save this acknowledgement slip.
Save the printed copy of the acknowledgement slip and send it to NSDL along with necessary documents. This is the address: NSDL e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune-411016