What is Permanent Account N​umber (PAN) & What is TAN?

You must have heard about PAN & TAN but got confused – What is it and are they really different ??

Come… lets see that ahead.

WHAT IS PERMANENT ACCOUNT NUMBER

-PAN is a 10-digit unique identification alphanumeric number assigned, mostly to those who pay tax on their incomes

-It is governed by Department of Income Tax

-Your PAN Card is valid for lifetime

-No 2 person can have same PAN

-PAN card can be issued to an Individual, NRI (Non-Resident Indians), Companies, or anyone who is liable to pay tax in India

DETAILS ON PAN CARD

• Name
• Photograph
• PAN
• Date of birth
• Father’s Name
• Signature
• QR code (on new Cards issued after 1 January 2017)

USES OF PAN

• Pay Income Tax
• For registering a business in India
• Photo identification
• A lot of financial transactions require PAN, few example are as follows :

– Sale or purchase of property

– Sale or purchase of a vehicle

– Visa & Foreign travel

– Purchase of Shares, Mutual funds and investments

• PAN Card can be used to avail utility connections such as electricity, telephone, LPG, and internet

WHAT IS TAN

• TAN stands for Tax Deduction and Collection Account Number
• It is a unique 10 digit alpha-numeric number allotted by the Income Tax Department
• It is to be obtained by only those persons who are responsible for deducting (TDS) or collecting (TCS) the tax at source
• TAN has limited use for specific purpose only
• It is not mandatory that every person having PAN needs to obtain TAN however, TAN cannot be issued without PAN

LET US SUMMARISE PAN & TAN