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.
How to apply for PAN card online
First off, visit the official online portal of NSDL for PAN application.
Select the application type and category.
Enter the required applicant details, and click on ‘Submit’ button.
Next, upload the required documents.
Finally, make the application fee payment.
After successful submission of the form, you will get an acknowledgement number, that can later be used to track the application.
What is TAN?
TAN or Tax Deduction and Collection Account Number is a ten-digit alphanumeric identity, allotted to such business entities that deduct or collect taxes at source.
Every organization that deducts or collects taxes at source is required to apply for a TAN, which must be quoted in their TDS/TCS returns.
After obtaining TAN, TDS returns must be filed quarterly by businesses.
How to apply for TAN?
In order to apply for TAN, log on to the TAN application page on the NSDL portal.
Next, click on ‘Online Application for TAN (Form 49B).’
Select the category of deductors from the drop-down menu, and click on ‘Select’ button…..Read More>>>
Source:- techiyogiz
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