Permanent Account Number (PAN) allows the government to keep a record of all kind of Official Financial Transactions that may be difficult from accessing an Individual or Companies Tax Liability. PAN is a 10 digit alpha-number character, issued in the form of laminated card. Once a Pan Card is issued, no continued compliance filings are necessary and it is valid for lifetime of the entity.
Tax Deduction & Collection Account Number (TAN) is a 10 Digit Alphanumeric Number abbreviation used for Tax Deduction and Collection Account Number. Under the Income Tax Act, a payer is required to deduct tax at appropriate rates, from payments of specific nature (like salary, payments to contractor or sub-contractors, professional charges, payment of rent, etc) and deposit the same with Central Government- quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source.
FEATURES OF PAN/TAN REGISTRATION:-
- PAN/TAN number is a 10 digit alphanumeric number which is issued by Income Tax Department.
- PAN/TAN number is issued for a lifetime, it needs not to be renewed.
- TDS Payments-TAN must be quoted when depositing TDS in the authorized bank.
- Failure to apply for TAN or not the same will result in a penalty of 10,000.
- TDS returns need to be filed quarterly and TDS certificates need to be given in 15 days from due date of filing.
- Different slab and limits are there as per different sections in Income Tax Act for deducting TDS.
Documents required for pan registration:-
- Passport size 2 Photographs (In Case of Individual)
- Proof of Residential Address (In Case of Individual
- Identity Proof (like, Aadhaar Card or Voter Id Card, Driving License and Passport)
- Date of Birth
- Valid Mobile No.
For another like firm, business entity:-
- Copy of Registration of the Firm or any kind of Business Entity are required
- Copy of Incorporation Documents like Memorandum of Association, Partnership Deed, etc
- If the Property belongs to the Owner not on rent so Address proof like a Copy of the Address of the Property Paper.
Documents required for TAN:-
There is no need to attach any document with the application for allotment of TAN. But, when the application is being done through the online mode, the acknowledgment, which gets generated after filling up the Form 49B will have to be forwarded to NSDL.