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.
Companies can now obtain PAN or TAN registration within a day if they submit the Digital Signature Certificate based application, thereby ensuring ease of doing business. Besides this, an individual can obtain a Permanent Account Number (PAN) through Aadhaar based e-signature facility which will reduce the effective time allotment. Under this process allotment of PAN and TAN will take place within one day after completion of the valid online application.
