PAN / TAN Registration

PAN refers to the Permanent Account Number. Its primary function is to prevent tax evasion by keeping a complete track of monetary transactions. TAN registration refers to the Tax deduction Account Number. It enables the assessee who has made payment to claim the tax deducted in their Income tax return. It is a unique, 10 character Alphanumeric identifier. The Income tax department issues both the numbers against the application in the prescribed form by an assessee.

PAN is necessary while preparing and filing Income Tax Return. Every assessee should hold a PAN whereas TAN is required for those who are responsible for paying tax from the amounts paid or payable as per the income tax act and to be quoted in TDS remittance challans, TDS certificate, and periodical return to being filled with the Income tax department.

TAN is Tax Deduction and Collection Account Number, TAN is 10-digit alphanumeric number and issued to persons who are required to deduct tax or collect tax as per provisions of TDS/TCS on payments made by them.

Person deducting the TDS is required to deposit the tax deducted to the credit of Central Government by quoting the TAN number, TDS amount, the entity registered for TAN. TAN application is send in form 49B and quarterly TDS returns need to be filed. Deducting entity would issue TDS certificate to person/entity whom tax has been deducted.